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My Lords, should China, or indeed any other country, wish to co-operate with us on AI policy, whom should they call? The Minister at DBIST, DCMS or the Cabinet Office, or the Prime Minister’s AI adviser at the Office for the Prime Minister and the Cabinet?
My Lords, should China, or indeed any other country, wish to co-operate with us on AI policy, whom should they call? The Minister at DBIST, DCMS or the Cabinet Office, or the Prime Minister’s AI adviser at the Office for the Prime Minister and the Cabinet?
We set out yesterday in our Written Ministerial Statement the allocation of responsibilities under the Government going forward. The strategy will be looked after by the Cabinet Office, which is taking the lead for AI strategy and public sector AI adoption. The Department for Business, Innovation, Science and Trade will take on responsibility for the science and innovation portfolio. As I mentioned at the beginning, it is a whole of government approach. You will find discussion of AI policy implications in every sectoral dimension, from financial services to maritime, because it is a technology that affects all areas. That is another reason why we need to look at regulation with a sector by sector approach, because it affects different sectors differently.
My Lords, I am chair of the UK-ASEAN Business Council, and the Minister will be aware that the Philippines is currently the president of ASEAN and, indeed, the whole region works very closely with the UK on climate change and green technologies. Could the Minister update
the House on the engagement the UK is currently undertaking with the Philippines during its presidency of ASEAN?
My Lords, I am chair of the UK-ASEAN Business Council, and the Minister will be aware that the Philippines is currently the president of ASEAN and, indeed, the whole region works very closely with the UK on climate change and green technologies. Could the Minister update
the House on the engagement the UK is currently undertaking with the Philippines during its presidency of ASEAN?
Yes, I am happy to do that. I am happy to talk and happy to write with more detail, if that will be helpful. On the specific question that the noble Lord asked about climate resilience, agriculture and solar energy, particularly in the blue economy we have a very active programme and have committed up to £20 million to various kinds of technical assistance. My briefers in the FCDO told me that, even if they do not ask for a letter, I should offer to send one, because we have a lot of good things to say—so I will.
My Lords, as a Chelsea fan, I take this opportunity to congratulate Arsenal on winning the Premier League and to commiserate with Spurs on their imminent relegation.
I have to say that I am confused by these exchanges— a retailer inviting government interference on prices, a Conservative doing the same and a Scotchman inviting
English interference in Scottish sport. I do not know which way to turn. However, while I appreciate the sentiment of regulating sports shirts, where does this end? We know that the Government are apparently planning to regulate prices in supermarkets on eggs and milk, which has been roundly condemned by retailers. Will that extend to season tickets and Sky Sports subscriptions? It is a dangerous road that the Minister is being invited to travel down.
My Lords, as a Chelsea fan, I take this opportunity to congratulate Arsenal on winning the Premier League and to commiserate with Spurs on their imminent relegation.
I have to say that I am confused by these exchanges— a retailer inviting government interference on prices, a Conservative doing the same and a Scotchman inviting
English interference in Scottish sport. I do not know which way to turn. However, while I appreciate the sentiment of regulating sports shirts, where does this end? We know that the Government are apparently planning to regulate prices in supermarkets on eggs and milk, which has been roundly condemned by retailers. Will that extend to season tickets and Sky Sports subscriptions? It is a dangerous road that the Minister is being invited to travel down.
It is also a road that is full of mythology and misunderstandings about where the Government are going. The Exchequer Secretary was emphatically clear this morning that capping supermarket prices is not something that the Government are considering, although clearly the price of food is of deep concern to many people, given the rising cost of living, and is something that the Government share their concerns on.
To ask His Majesty's Government how many governors of independent schools are required to verify their identity using Verifile.
To ask His Majesty's Government how many governors of independent schools are required to verify their identity using Verifile.
The department does not hold this data, as it does not carry out identity checks on individuals involved in the governance or management of independent schools. In accordance with the Education (Independent School Standards) Regulations 2014, responsibility for ensuring that appropriate identity and suitability checks are carried out rests with the school’s individual proprietor or proprietor body, as applicable.
To ask His Majesty's Government whether the Department for Education is responsible for undertaking identity checks for governors of independent schools.
To ask His Majesty's Government whether the Department for Education is responsible for undertaking identity checks for governors of independent schools.
The department does not hold this data, as it does not carry out identity checks on individuals involved in the governance or management of independent schools. In accordance with the Education (Independent School Standards) Regulations 2014, responsibility for ensuring that appropriate identity and suitability checks are carried out rests with the school’s individual proprietor or proprietor body, as applicable.
To ask His Majesty's Government how many governors of independent schools fail an identity check using Verifile each year.
To ask His Majesty's Government how many governors of independent schools fail an identity check using Verifile each year.
The department does not hold this data, as it does not carry out identity checks on individuals involved in the governance or management of independent schools. In accordance with the Education (Independent School Standards) Regulations 2014, responsibility for ensuring that appropriate identity and suitability checks are carried out rests with the school’s individual proprietor or proprietor body, as applicable.
My Lords, the anti-money laundering regulations are imposed on people who are politically exposed without any nuance whatever, and not in accordance with the legislation or regulations, which require banks to assess people on a case-by-case basis—nor are customers told why they are being refused. There appears to be no mechanism for any kind of appeal or redress. Will the Minister talk with the FCA and the numerous ombudsmen who appear to work on this area and at least allow customers to talk to a human being rather than a computer that is programmed to say no in all circumstances?
My Lords, the anti-money laundering regulations are imposed on people who are politically exposed without any nuance whatever, and not in accordance with the legislation or regulations, which require banks to assess people on a case-by-case basis—nor are customers told why they are being refused. There appears to be no mechanism for any kind of appeal or redress. Will the Minister talk with the FCA and the numerous ombudsmen who appear to work on this area and at least allow customers to talk to a human being rather than a computer that is programmed to say no in all circumstances?
I fully recognise and understand many of the things the noble Lord says. I understand that being a politically exposed person means enhanced scrutiny and administrative burdens and has impacted many noble Lords. Banks and other regulated firms must apply additional checks to customers who meet the definition of a politically exposed person, as well as to their relatives and close associates. That is to mitigate the increased risk that they are targeted for bribery and corruption attempts. While those checks are important, it is essential that they are proportionate to the risks posed; checks should account for the nature of the proposed business relationship and the potential for the product to be misused.
The noble Lord will know that changes to the money laundering regulations now require banks to treat domestic politically exposed persons as inherently lower risk and, in the absence of any other high-risk factors, banks should apply due diligence measures proportionately. In July 2024, the FCA also published its review of the treatment of politically exposed persons, which identified a range of required improvements by the firms that it assessed.
My Lords, the noble Lord’s question was spot on, but may I focus on a slightly different area? I read over the weekend that Anthropic has produced software that it now deems too dangerous to launch publicly because of its huge impact on cyber security. This artificial intelligence is apparently able to crack all the flaws and bugs in cyber security systems, which obviously could have a devastating impact on our economy, given that it is now so digitally based. What plans do the Government have to discuss this concerning issue with Anthropic?
My Lords, the noble Lord’s question was spot on, but may I focus on a slightly different area? I read over the weekend that Anthropic has produced software that it now deems too dangerous to launch publicly because of its huge impact on cyber security. This artificial intelligence is apparently able to crack all the flaws and bugs in cyber security systems, which obviously could have a devastating impact on our economy, given that it is now so digitally based. What plans do the Government have to discuss this concerning issue with Anthropic?
We take the security implications of frontier AI seriously. Through our AI Security Institute, we have world-leading expertise in this area and maintain continuous engagement with global technology leaders. For obvious reasons, I am not going to comment on the specifics of all those engagements, but, in order to stay ahead of evolving threats, businesses should act now to strengthen their online defences. The NSCS’s guidance outlines how to secure Cyber Essentials certification and patch vulnerabilities quickly. AI capabilities are moving fast, but strong fundamentals are still effective.
My Lords, we have had a plethora of initiatives on AI. We had the welcome announcement of the sovereign AI fund last week. All of them are welcome individually: Innovate UK, ARIA, the AI Security Institute, the British Business Bank, and the National Wealth Fund. Could we perhaps have a moratorium on announcements of AI initiatives and perhaps an overview and co-ordination of this plethora of bodies?
My Lords, we have had a plethora of initiatives on AI. We had the welcome announcement of the sovereign AI fund last week. All of them are welcome individually: Innovate UK, ARIA, the AI Security Institute, the British Business Bank, and the National Wealth Fund. Could we perhaps have a moratorium on announcements of AI initiatives and perhaps an overview and co-ordination of this plethora of bodies?
In our AI opportunities action plan we have indeed set out a plethora. That is because this is a technology that provides great potential benefits, and adoption is absolutely key. We need all areas of the economy to be thinking about the implications. We are a heavily service-based economy and it is very much in our future interests to adopt this technology and harness its benefits, whether that is in healthcare, energy efficiency or many other areas. So we will continue to focus on all areas of the development of AI, from data centres to regulation.
To ask His Majesty's Government what reasons have been identified for prospective chairs of school governors and prospective school governors failing identity checks when using the Verifile service.
To ask His Majesty's Government what reasons have been identified for prospective chairs of school governors and prospective school governors failing identity checks when using the Verifile service.
The department does not hold this data, as it does not carry out identity checks on maintained school governors or those on local governing bodies in academy trusts. The governing body for a maintained school and the academy trust for a trust local governing body are responsible for ensuring such checks are conducted.
To ask His Majesty's Government how many prospective chairs of school governors and prospective school governors are required each year to carry out identity checks using Verifile.
To ask His Majesty's Government how many prospective chairs of school governors and prospective school governors are required each year to carry out identity checks using Verifile.
The department does not hold this data, as it does not carry out identity checks on maintained school governors or those on local governing bodies in academy trusts. The governing body for a maintained school and the academy trust for a trust local governing body are responsible for ensuring such checks are conducted.
To ask His Majesty's Government how many prospective chairs of school governors and prospective school governors fail identity checks through Verifile as a percentage of the total who are required to use the Verifile service.
To ask His Majesty's Government how many prospective chairs of school governors and prospective school governors fail identity checks through Verifile as a percentage of the total who are required to use the Verifile service.
The department does not hold this data, as it does not carry out identity checks on maintained school governors or those on local governing bodies in academy trusts. The governing body for a maintained school and the academy trust for a trust local governing body are responsible for ensuring such checks are conducted.
My Lords, I hope the Minister has heard what the noble Lord, Lord Kirkhope, had to say. I think that his argument has prevailed. As was just demonstrated, parking covers a very wide landscape, so may I draw the Minister’s attention to the difficulty one has in parking electric bikes in London? They are now geolocated, so you park it outside a station, but the app will not let you close. Can the Government please sit down with the mayor and the London boroughs to create a win-win—for people who hate these bikes being parked randomly on the street and for those of us who depend on them, who would just like to see more parking places for them?
My Lords, I hope the Minister has heard what the noble Lord, Lord Kirkhope, had to say. I think that his argument has prevailed. As was just demonstrated, parking covers a very wide landscape, so may I draw the Minister’s attention to the difficulty one has in parking electric bikes in London? They are now geolocated, so you park it outside a station, but the app will not let you close. Can the Government please sit down with the mayor and the London boroughs to create a win-win—for people who hate these bikes being parked randomly on the street and for those of us who depend on them, who would just like to see more parking places for them?
I understand the frustrations that people feel, but if you are parking the bike where you are supposed to park it, you should be able to log out of the system. It is absolutely unacceptable for bikes to be left in some of the places that I see them being left, and it causes a great obstruction, particularly to our residents with less mobility. If there is a bike in the middle of a pavement it is very hard to manoeuvre around it, particularly if you are in a wheelchair. We are looking at all these issues. New powers are being granted to local authorities as part of the Bill we will be debating later this afternoon, so I hope that will help the situation.
My Lords, hemp is grown in this country and is a fantastic building material that is both carbon negative and sustainable, with fantastic insulation qualities. The French are the largest growers of hemp in Europe and use it an extraordinary amount in construction. Given that 34 miles of rope on HMS “Victory” was made of hemp, how have we let the French steal a march on us and what are the Government going to do about it?
My Lords, hemp is grown in this country and is a fantastic building material that is both carbon negative and sustainable, with fantastic insulation qualities. The French are the largest growers of hemp in Europe and use it an extraordinary amount in construction. Given that 34 miles of rope on HMS “Victory” was made of hemp, how have we let the French steal a march on us and what are the Government going to do about it?
: The noble Lord asks a very interesting question. Those of us who have been involved in working with the construction industry will be aware that there is a quite a large lobby for the use of hemp in this country—I am sure the noble Lord is aware of it. As we move forward with more sustainable building, we have to look at all options, and I am sure we can consider hemp as part of that.
My Lords, I love the idea that the Chinese are listening to our proceedings through your Lordships’ hearing aids. But I say to the Minister that there are many people under the age of 70 who suffer from hearing loss, possibly undiagnosed. It can have a huge impact on people’s cognition and on memory loss, but they are unaware of it. Can the Minister update the House on what the Government are doing to encourage youngsters such as myself to have hearing aid tests as a matter of routine?
My Lords, I love the idea that the Chinese are listening to our proceedings through your Lordships’ hearing aids. But I say to the Minister that there are many people under the age of 70 who suffer from hearing loss, possibly undiagnosed. It can have a huge impact on people’s cognition and on memory loss, but they are unaware of it. Can the Minister update the House on what the Government are doing to encourage youngsters such as myself to have hearing aid tests as a matter of routine?
I hope I share the noble Lord’s definition. I am enthusiastic about our new approach through the community diagnostic centres that noble Lords will have seen come on stream and be established all around the country. I agree totally about the age range, which is why we promote the fact that free hearing tests are available, and I encourage people to do them. The highest ever number of tests was done in October, over 136,000, which shows that the message is getting out, but I think the all-round approach of community diagnostics centres will really help us here.
My Lords, the whole House will agree that music venues are a vital part of our cultural ecosystem. Music venues are now benefiting from a voluntary grass-roots levy levied on concert tickets, which I understand the Government are keeping under review with a view to introducing a statutory levy. The Government are also talking about a tourist tax. I suspect I know what the Minister’s answer will be, but would it make sense to roll up consultation on a tourist tax and a ticket levy into one single tax?
My Lords, the whole House will agree that music venues are a vital part of our cultural ecosystem. Music venues are now benefiting from a voluntary grass-roots levy levied on concert tickets, which I understand the Government are keeping under review with a view to introducing a statutory levy. The Government are also talking about a tourist tax. I suspect I know what the Minister’s answer will be, but would it make sense to roll up consultation on a tourist tax and a ticket levy into one single tax?
I do not think so. I shall repeat what my right honourable friend Ian Murray, the Culture Minister, said on the industry levy:
“My ambition is to see the voluntary levy in place for as many concerts as possible and, as a milestone in that progress, for at least 50% of tickets on sale for stadium and arena shows in 2026”
to have adopted the levy by 31 December.
“Following this, I would like to see this target brought as close to 100% as possible”.
My Lords, I certainly do not support mid-contract price rises but, arguably, mobile prices in the UK are among the lowest in Europe, which to an extent affects mobile operators’ ability to invest in the world-class mobile infrastructure we need. On that note, can the Minister update us on the progress of the shared rural network, which will bring mobile coverage to so many areas of the country that do not yet have it?
My Lords, I certainly do not support mid-contract price rises but, arguably, mobile prices in the UK are among the lowest in Europe, which to an extent affects mobile operators’ ability to invest in the world-class mobile infrastructure we need. On that note, can the Minister update us on the progress of the shared rural network, which will bring mobile coverage to so many areas of the country that do not yet have it?
The noble Lord is right to stress the importance of investing in our digital infrastructure, both in the mobile network and, I would also say, in the fibre network through Project Gigabit. The shared rural network continues to operate this year, bringing more availability to areas that are not covered. Our mobile coverage is increasing year on year.
My Lords, this is a complex and difficult area. I often praise the work of Ofcom in implementing the Online Safety Act, and everyone thinks I am applying to be the chair of Ofcom: I am not. I do however think that the suggestion of the noble Baroness, Lady Benjamin, is a very interesting one. A lot of research needs to be done, and it would be interesting to see the VPN research. There is another huge gap in researching the technology used in our schools by edtech providers, and in providing some kind of quality framework to ensure that this technology—how it collects our children’s data, and so on—is at least transparent and known about, so that requisite action can be taken in the future.
My Lords, this is a complex and difficult area. I often praise the work of Ofcom in implementing the Online Safety Act, and everyone thinks I am applying to be the chair of Ofcom: I am not. I do however think that the suggestion of the noble Baroness, Lady Benjamin, is a very interesting one. A lot of research needs to be done, and it would be interesting to see the VPN research. There is another huge gap in researching the technology used in our schools by edtech providers, and in providing some kind of quality framework to ensure that this technology—how it collects our children’s data, and so on—is at least transparent and known about, so that requisite action can be taken in the future.
The noble Lord makes a very good point about the need for accurate, evidence-based research that allows us to take the right action. As noble Lords may have seen, Ofcom published a report this morning setting out a number of methods for researching, for example, the use of VPNs by children. We should also examine technological solutions, as well as advice and guidance, and the role of Ofcom in enforcing the requirements of the Online Safety Act.
My Lords, to follow up on what the noble Baroness, Lady Jones, said to the Minister, digital trade is so important. The previous Government led the way with digital trade agreements, particularly with countries such as Singapore. As chair of the UK-ASEAN Business Council, I see how important these digital trade agreements are and how the UK leads the way as a member of the CPTPP and an observer at ASEAN. I hope that the Minister will keep her nerve as we start to reset our relationship with our largest trading partner, just 20 miles across the channel—the EU.
My Lords, to follow up on what the noble Baroness, Lady Jones, said to the Minister, digital trade is so important. The previous Government led the way with digital trade agreements, particularly with countries such as Singapore. As chair of the UK-ASEAN Business Council, I see how important these digital trade agreements are and how the UK leads the way as a member of the CPTPP and an observer at ASEAN. I hope that the Minister will keep her nerve as we start to reset our relationship with our largest trading partner, just 20 miles across the channel—the EU.
That is a very good point. I was able to discuss with my Malaysian counterpart the potential for a digital trade agreement when I was in Kuala Lumpur earlier this year. I very much hope that we can progress that to promote digital trade—and likewise with the EU. I assure the noble Lord that the Government are working extremely actively to progress the EU reset.
My Lords, I declare my interest as the chair of the All-Party Group on Crypto and Digital Assets. The Minister’s remarks are very welcome. Does he agree with me that the risks around crypto are the risks of not regulating it? With one in four people in Britain now trading cryptocurrency —half of them under the age of 35—regulation has never been more needed. In essence, the key issue is time: we need to get on with it.
My Lords, I declare my interest as the chair of the All-Party Group on Crypto and Digital Assets. The Minister’s remarks are very welcome. Does he agree with me that the risks around crypto are the risks of not regulating it? With one in four people in Britain now trading cryptocurrency —half of them under the age of 35—regulation has never been more needed. In essence, the key issue is time: we need to get on with it.
I am grateful to the noble Lord for his question and pay tribute to his considerable expertise in this matter. I agree with what he said. Crypto assets have the potential to play a significant role in the financial services sector, and the economy more broadly, including through greater transparency, efficiency and security. We are already seeing the benefits that stablecoin can provide in cross-border payments by reducing costs and improving efficiency. Unlocking the full potential for digital assets and blockchain technologies requires payments that interact with them directly, and stablecoins can play an important role in achieving that. It is therefore important for the UK to harness those opportunities and—I agree with him on this—to bring forward legislation, and we will do so.