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Clause 13

Reports by Secretary of State
Amendments made: 40, in clause 13, page 8, line 3, leave out from beginning to ‘lay’ and insert
‘The Secretary of State must, on or before each report date relating to a UK strategy’.
This amendment (with amendments 41, 42, 43 and 45) clarifies the wording of clause 13. The laying of each UK strategy triggers an obligation to lay annual reports on the implementation of that strategy, until either the next strategy is laid or the end of the target year is reached.
41, in clause 13, page 8, line 7, leave out ‘current’.
See Member’s explanatory statement for amendment 40.
42, in clause 13, page 8, line 8, leave out subsection (2) and insert—
‘(2) The report dates relating to a UK strategy are each anniversary of the day on which it was laid before Parliament, other than an anniversary which falls—
See Member’s explanatory statement for amendment 40.
43, in clause 13, page 8, line 15, leave out ‘most recent’.
See Member’s explanatory statement for amendment 40.
44, in clause 13, page 8, line 17, leave out ‘relevant Northern Ireland department’ and insert ‘Northern Ireland departments’.
See Member’s explanatory statement for amendment 34.
45, in clause 13, page 8, line 23, leave out ‘most recent’. —(Helen Goodman.)
See Member’s explanatory statement for amendment 40.
Question proposed, That the clause, as amended, stand part of the Bill.
Mr. Gauke: I have two questions for the Minister. The clause requires the Secretary of State to present reports to Parliament on progress towards meeting the targets and in implementing the UK strategy. Subsection (2) states:
“The report dates are each anniversary of the day on which the most recent UK strategy was laid before Parliament.”
Subsection (3) states:
“The Secretary of State must, as soon as reasonably practicable after the end of the target year, lay before Parliament a report on the progress made in implementing the most recent UK strategy.”
My first question is slightly complicated and I hope that the Minister will bear with me.
First, we have an annual report ending with the target year, which is laid before Parliament on the anniversary of the most recent UK strategy. So, we will presumably receive an annual report at some point in the target year: the year after 1 April 2020. That is the last of such reports. We then have the report mentioned in subsection (3), which should be delivered as soon as is reasonably practicable after the end of the target year. That may not be the final assessment, but it is the big assessment of whether the 2020 target is met.
On the basis of precedent, that report on 2020 will take some time after the completion of the relevant year. Therefore, it may be 2022 when it comes out. I mainly ask for clarification, but it seems that we will have a gap in reports. There will potentially be annual reports running up to 2 April 2020. We will then have a period of two years—perhaps two and a half years—before we have another report, if I have understood correctly, because the requirement is on an anniversary basis. Could the Minister confirm whether that is the case and explain whether there is a need for an interim progress report some time in 2021?
My second question concerns the evidence provided by Ministers during the evidence sessions. The Financial Secretary, in response to questions from the hon. Member for Northavon, explained why he thought that by 2016-17 we will not be in a position in which
“we are surprised to find that we are not on track. By that stage”—
stating the reason—
“we will have had a number of iterations—two I think—of the strategy. We will have had regular annual reports”.——[Official Report, Child Poverty Public Bill Committee, 20 October 2009; c. 10, Q23.]
The Government clearly see the annual report as a significant driver in meeting the 2020 target. In the run-up to the 2010 target, how have the Government reported progress on child poverty? Can the Minister explain why that process was deficient?
Helen Goodman: The hon. Gentleman asks a series of complex questions, but not the same series of complex questions that I asked when I read the clause.
Hitherto, obviously, the assessment as to whether we are on track has been produced when the national statistics for the most recent year are available. That is why, for example, our most recent full set of statistics relate, unfortunately, to as far back as 2007-08. That is one of the reasons why we have debates about the effectiveness of Government measures since then. As the hon. Gentleman is fully aware, we do not have the statistics for the level of child poverty, and we shall not know if we have hit the targets until the first quarter of 2012.
As we move forward, the situation will be different in a number of respects: we will have a wider range of targets than hitherto; we are putting duties on to the local authorities as well as formalising the responsibilities of the Secretary of State; and we are producing forward-looking strategies. Saying something about the forward-looking strategies might help to answer the hon. Gentleman’s second question, as well as to inform an answer to his first question.
The first strategy must be produced within a year of Royal Assent—probably 2011, possibly 2012. Thereafter, a revised strategy must be produced within three years. It could be produced earlier, but the latest possible date that it could be produced is in 2014. If the whole process was stretched out, the next latest possible date would be in 2017, then in 2020. Meanwhile, we would be getting the data back on progress and producing annual reports, which we would, in effect, map against what we had set out in the strategies.
The hon. Member for South-West Hertfordshire asked, reasonably enough, if there is a gap at 2021. On the basis of what is laid out here, my immediate response is that he has a good point. However, we shall still be producing all the annual statistics. It is possible that by that period we will have changed how we produce the statistics—we might have speeded up, because there are improvements all the time. I suggest that the hon. Gentleman has alighted on a small and technical point, but I do not think it impacts significantly on the accountability arrangements because the most important one is a requirement to produce reports up until the end of the target year. The amendments were intended to clarify the situation for the Committee. I hope that the hon. Member for South-West Hertfordshire now understands our intention.
Mr. Gauke: It is a question of alighting on a small, technical point but what are Committee stages for, if not that? If we are going to be pedantic, may I correct the Minister? The requirement is not to report up until the end of the target year, but for a report ending with the target year. If the date of the last strategy is, for argument’s sake, 2 April, as I read it the last anniversary ending with the target year would be 2 April 2020. There would be no requirement to make another report until we got to the report under subsection (3), which could be some time later. The Minister is right that the matter could be processed more quickly or more slowly. She sets out the reasons, including dealing with local authorities and so on. I do not pretend that this is a major point but, as I read the Bill, we might miss a year of annual reports.
Helen Goodman: The hon. Gentleman has been assiduous in reading the Bill, but not in reading the amendments. The purpose of the amendment is precisely to fill the gap he alighted upon.
Question put and agreed to.
Clause 13, as amended, accordingly ordered to stand part of the Bill.

Clause 14

Statement required in relation to target year
Question proposed, That the clause stand part of the Bill.
Steve Webb: I have one question about the intriguing subsection (4) of clause 14. Subsection (1) says that the “report under section 13(3)”—which is the report at the end asking how we did—must give the four figures for targets in the Bill. Subsection (2) means that they must be kosher, and 14(3) asks whether the number is bigger or smaller than the target. That is not unreasonable. However, 14(4) is rather fun, as it says that if we have failed, we must say why. The whole point of the exercise is to place a statutory duty on the Secretary of State to achieve the targets. It is intriguing that in the middle we find a clause saying that if we fail we will have to explain ourselves.
I am intrigued to know the explanations that might be prompted by 14(4). Could one say, “We changed our minds and decided that child poverty was not all that important.”? Or could one say, “We would have liked to have done more but the economy was in such a mess we did not have the money.”? I am not sure what the point is. If we try to abolish child poverty over a 10-year period, fail to do so and breach a statutory obligation, what is the value added of an excuse clause? Presumably, we are hoping that someone will take legal action to enforce the provision.
The relevant point is that it is not clear whether legal enforcement of the Bill’s duties comes before or after 2020. Could one say, in 2018, “We are miles away from this.”? Could one take the Government to court to make sure? In a sense, there is no point taking the Government to court after 2020 because they will have failed. They will have breached the statutory duty and it cannot be un-breached. The only valid legal action would have to be pre 2020, in which case, what is the point of 14(4) asking why we failed? It seems odd. It might make an interesting article, I suppose, but it is not clear what it is for.
Will the Under-Secretary clarify the matter? What excuse could be given for failure? Is it her understanding that the statutory duty to reach targets must be susceptible to legal action prior to 2020? Subsection (4) concerns a post 2020 excuse, which one hopes we would never get, since there would be no point in having the Bill in the first place.
3 pm
Mr. Stuart: I am struck by the hon. Gentleman’s naivety. Does he really believe that, under the Bill, a court would enforce such targets, that it would intervene and imprison the Secretary of State for successive failures? The only thing that has ever happened when a statutory target has been missed is that the court makes a declaration. There has been no suggestion by anyone involved in the law that there could be another response unless we brought in specific provision to allow a court to intervene and overrule the democratically elected Government.
Steve Webb: A democratically elected Government are passing this law; it is not undemocratic to enforce something that an elected Parliament has introduced. I am intrigued by the thought that the responsible Secretary of State, whom I now understand to be “probably the Chancellor”, could be locked up. Presumably, the effect of court action is to require the Government to take steps to meet their statutory obligations. If the court says, “You’re not going to meet your targets. You are in breach of the Child Poverty Act 2010. What are you going to do about it?”, we hope that the Government, rather than saying, “Well, you can lock us up if you don’t like it”, say, “Right, we will take the following measures.” I have made my main point, but it is a bit odd that we have an excuse clause. Being able to explain the reason for failure after the event undermines the whole point of having a statutory binding target by 2020.
Helen Goodman: I am slightly concerned by the hon. Gentleman’s use of the word “excuse”; it is not appropriate. Producing a report that explains what has not happened is different from making an excuse. The truth is that the duty is absolute. What is being produced is an accountability mechanism for the end of the period. However, it would be possible for legal action to be taken before 2020, not, as the hon. Gentleman suggests, if forecasts suggest that the targets will be missed, but if the Government’s actions, strategy or decisions will not be sufficient to allow them to meet their duties.
The duties of the Government prior to 2020 are to produce credible strategies. If they fail to do that, they will be open to legal challenge, and the claimants would need to produce clear evidence that they have failed to do that. In that case, there would not be a Government report before 2020 stating whether or not the targets had been met. The argument would be about whether the approach being taken was reasonable and, obviously, it would be up to the Government to show that they had a credible strategy. If the hon. Gentleman takes those two things together, he should be reassured that the measure will be an effective discipline on any Government. It will maintain the pressure—that is what he is primarily concerned about—and it will strengthen the force behind our objective of achieving the targets.
Question put and agreed to.
Clause 14 accordingly ordered to stand part of the Bill.

Clause 15

Economic and fiscal circumstances
Mr. Stuart: I beg to move amendment 61, in clause 15, page 9, line 21, at end insert
‘including with regard to any statutory duty to reduce public borrowing’.
The Fiscal Responsibility Bill proposed in the Prime Minister’s Party Conference speech of 29 September 2009 will impose a legally binding obligation on the Government to reduce public borrowing. The amendment seeks clarification as to whether the Secretary of State, in preparing a UK strategy, and the Commission, in considering advice, will need to take into account this obligation.
As ever, it is a great pleasure to serve under your chairmanship, Mr. Key. The amendment follows on neatly from the points made rightly, albeit naively, by the hon. Member for Northavon; the credence that he gave to the Government’s promises was overly great. Before I deal with the specifics of my amendment, I want to focus more on statutory targets. What do statutory targets mean? I asked the Library to investigate the history of statutory targets, and it duly produced a note on the subject. I wanted to find out whether they had a history, because it has always seemed manifestly absurd to put targets in statute, whether in this Bill or in the Climate Change Act 2008.
Time and again in debate on the Climate Change Bill, Ministers boasted of a legal duty on Government to deliver. When I looked into the history of statutory targets, I found that no Government prior to this one had ever put targets into statue, at least according to the House of Commons Library. Many Back Benchers had come forward with private Members’ Bills that suggested doing exactly that, but they always had to change the wording to refer to a provision for setting targets, so as to give the Government of the day the flexibility to respond in the right way. The Library came through with a list of the provisions that have been made. The Water Act 2003 has concentration of fluoride targets, the Housing Act 2004 has energy efficiency of residential accommodation targets, and there are other targets that have been put together by the Government. It is a relatively novel thing to do.
If one looks for legal advice on such matters, one finds the article by Harriet Townsend on the Climate Change Act 2008. That goes to the point of what the hon. Member for Northavon said: what enforceability is there? As he said, why bring genuine child poverty charities and campaigners to Parliament and make them believe that if the agenda, which they rightly say should be more central to Government policy making, is put in statute, the justice that they have long sought for children in poverty can be had? What is the point if it turns out that we are talking about sleight of hand, or Government posturing, with no enforceability mechanisms whatever for those who feel that they had been made a binding promise, and who believed that it was binding by dint of being in statute?
Harriet Townsend’s paper on the Climate Change Act 2008, which is well worth reading because of its relevance to the matter at hand, effectively says that she cannot see that any duty set in statute can be enforceable. So far, the only cases that have come before a court, which I will come to in a moment, have resulted in a declaration only. I feel that a fraud is being perpetuated at the heart of the Bill. It is a fraud on all those who campaign for and care most about child poverty, because the statutory targets set in the Bill are not, in fact, enforceable.
Mr. Jamie Reed (Copeland) (Lab): Will the hon. Gentleman give way?
 
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