Why Labour should adopt a two-stage approach to House of Lords reform

Today the Constitution Unit publishes a report jointly with the Institute for Government and Bennett Institute on the options for House of Lords reform. Here, in the second of two posts summarising its conclusions, report author Meg Russell argues that if Labour wins the next election, it should pursue a two-stage approach. This would begin with immediate urgent changes to the appointments process and hereditary peers, while the party consulted on larger-scale proposals such as those set out in the Brown report.

Today the Constitution Unit publishes a new report, House of Lords reform: navigating the obstacles, jointly with the Institute for Government and the Bennett Institute at the University of Cambridge. This is the second of two posts summarising some of the report’s conclusions, with a particular focus on Labour’s options for Lords reform.

The previous post explored proposals from Labour’s commission chaired by former Prime Minister Gordon Brown, for an elected ‘Assembly of the Nations and Regions’. It suggested, on the basis of past UK and international experience, that large-scale reform of this kind will be difficult to achieve, and could not be actioned by Labour immediately. The Brown report leaves many open questions on which careful consultation and deliberation would be required. Meanwhile, there are clear problems with the House of Lords which are widely recognised, and would be relatively straightforward to deal with. This post focuses on such beneficial small-scale changes, including:

  • placing a limit on the size of the House of Lords
  • agreeing a formula for the sharing of seats
  • introducing greater quality control on appointments
  • removing the remaining hereditary peers.

More detailed consideration was given to the first three of these options in another recent post on this blog. Hence this one deals with them quite briefly, then draws the strands together, considering a possible strategy for the Labour Party on Lords reform if it comes to power.

Placing a limit on the size of the House of Lords

One of the most visible difficulties with the House of Lords is its growing size. Reform by Tony Blair’s government in 1999 removed most hereditary peers, slashing the chamber from more than 1,200 members to 666. But since then, its size has crept gradually upwards again. There was a net growth of around 70 members under Blair, and well over 100 under David Cameron – though Gordon Brown and Theresa May each presided over net reductions of around 30 members. Boris Johnson’s appointments were also excessive, and concern remains about his possible resignation honours list. Currently, the size of the House of Lords hovers around 800.

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How the recent government restructure will affect parliamentary scrutiny

One of the features of government restructures is that it poses an administrative challenge for parliament, which then has to decide how to maintain proper scrutiny of the new machinery of government. Long-serving Commons official David Natzler explains how changes such as those made at the start of the month will affect parliament and poses possible solutions to some of the potential logistical problems.

On 7 February Prime Minister Rishi Sunak announced the creation of four new government departments. Responsibility for energy and the policy of ‘net zero’ was transferred from the Department of Business, Energy and Industrial Strategy (BEIS) to a new Department for Energy Security and Net Zero (DESNZ). The remaining parts of BEIS were merged with the existing Department for International Trade (DIT) to create a Department for Business and Trade (DBT). And a new Department for Science, Innovation and Technology (DSIT) was founded, comprised of the existing Government Office for Science, together with the digital responsibilities hitherto in the Department for Digital, Culture, Media and Sport (DCMS). DCMS reverts to its original 1992 responsibilities, when it was created as the Department of National Heritage.

Parliament plays no role in this process, unlike in some other countries, including Canada. It is an accepted part of the prerogative powers of the Prime Minister to create and wind up departments of state, constrained only by the statutory limit on the numbers of those paid as Cabinet ministers. No primary legislation is required: Transfer of Functions Orders will presumably be laid in due course, but these are subject only to the negative procedure and are tabled after they take legal effect. The costs of such reorganisations, expertly analysed in 2019 by the Institute for Government, could in principle be challenged under parliamentary processes for approval of expenditure, but that is not easy to envisage in practical terms. These latest changes seem to enjoy a large measure of cross-party support. But that does not diminish the case for greater parliamentary involvement in changes in the structure of government. It surely cannot be right that the Prime Minister has almost untrammelled power to determine how the UK is governed.

The changes have consequences for parliament, and for House of Commons select committees in particular. Such reorganisations are far from uncommon. In the era since the launch of departmental select committees in 1979 there have been several such changes. Some have involved little more than a change of nameplate, such as the replacement of the Department of Social Security by the Department of Work and Pensions. In other cases – most recently in the preservation of the International Development Committee despite the merger of the Department for International Development with the Foreign and Commonwealth Office – the Commons decided not to reflect a strict departmental structure in its committees.

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The misleading of parliament greatly troubles the public: something should be done

The recent case of Boris Johnson, now referred to the Committee of Privileges, highlighted perceived problems in handling allegations of MPs misleading the House of Commons. Meanwhile, Constitution Unit research shows that the public want tough sanctions for such behaviour. Meg Russell summarises these findings, in the context of the Johnson inquiry, and a parallel inquiry by the Commons Procedure Committee on correcting the record – arguing that serious consideration should be given to tightening the rules.

Recent context

Concerns about the truthfulness of politicians are nothing new. Indeed, historically politicians may often have been subject to unfair criticism in this area. Within parliament, and particularly with respect to ministers, there is a strong expectation that members should tell the truth. The December 2022 edition of the Ministerial Code states in its very first article (as did its predecessors) that:

It is of paramount importance that Ministers give accurate and truthful information to Parliament, correcting any inadvertent error at the earliest opportunity. Ministers who knowingly mislead Parliament will be expected to offer their resignation to the Prime Minister.

Within parliament, this matter is in theory handled equally seriously. Erskine May states that ‘The Commons may treat the making of a deliberately misleading statement as a contempt’. As such, this behaviour may be referred to the Committee of Privileges for investigation leading to possible punishment.

These matters reached prominence under the premiership of Boris Johnson, who was frequently accused – by MPs and others – of misleading parliament. Things came to a head over statements that he had made about ‘partygate’ (the holding of social gatherings in 10 Downing Street during the COVID-19 lockdowns), which ultimately resulted in Johnson being referred to the Committee of Privileges. It is currently undertaking an investigation. Aside from the allegations themselves, controversy has reached the news over Johnson submitting a legal opinion to the committee questioning its processes, and over his legal advice being funded by the public purse. Hearings by the committee are expected in due course, with a report later this year.

Meanwhile, the House of Commons Procedure Committee is conducting a parallel inquiry which also addresses handling of misleading statements to parliament, with a focus on ‘correcting the record’. Unlike the Committee of Privileges, the Procedure Committee has invited evidence on general issues, rather than a single case, and it exists to propose changes to Commons procedures. Understandably, therefore, it has attracted evidence from those concerned about recent events.

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The public wants parliament to have a central role in legislation, so why does the Retained EU Law Bill enhance the legislative power of ministers?

The Retained EU Law (Revocation and Reform) Bill is controversial for many reasons – not least the sweeping powers it grants the executive to change a swathe of laws. Lisa James and Alan Renwick discuss recent Constitution Unit survey results, which suggest that members of the public instinctively favour a central role for parliament in law making.

The Retained EU Law (Revocation and Reform) Bill – or REUL Bill – is a complex and controversial piece of legislation. Its focus is the law which arose from the UK’s membership of the European Union. This ‘retained EU law’ is significant in both scale and scope: the government currently lists over 3700 pieces of such legislation, much of it implementing regulatory regimes across a number of major policy domains. Areas such as environmental protection, consumer rights and employment law are particularly affected.

The REUL Bill would automatically repeal most retained EU law at the end of 2023, and make it much easier for ministers to amend or replace. This approach has proved controversial in a number of ways. Business groups have raised concerns that previously settled areas of law could be disrupted at short notice, creating legal uncertainty. Environmental groups and trade unions, among others, have raised concerns about rights protections being lost. And some have questioned whether Whitehall really has the capacity to conduct a thorough and careful review of such a huge body of law by the end of the year.

Alongside this, experts have warned that the bill as currently drafted would greatly empower the government at the expense of parliament, handing ministers sweeping powers to decide what law is repealed or preserved, and how it is amended. Such process-related concerns – regarding how legal change is enacted – are sometimes considered of interest only to experts. But recent Constitution Unit research shows that the public have clear instincts on how such processes should work – and express widespread support for parliament’s role in law-making.

The REUL Bill and parliamentary scrutiny

As currently drafted, the bill places significant powers and discretion in the hands of ministers. If passed in its current form, the clock would begin ticking on the sunset clause which would repeal most retained EU law at the end of 2023; from this point, parliament would have little say over what happens to retained EU law.

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