My Lords, I am most grateful to my noble friend Lady Noakes and the noble Lord, Lord Bassam of Brighton, for their amendments and their contributions to the discussions
on the Bill and on these amendments. I will take Amendments 84, 85, 87 and 88 together as they are closely related. I hope I will be able to address most of the questions raised this afternoon in this very short debate, notably by my noble friend Lord Trenchard and the noble Lord, Lord Grantchester. If not, I will certainly do so in writing, in particular on the questions raised on the powers and constraints regarding data sharing.
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On Amendments 84 and 85, on the collection of exporter information, I am sure we all agree that, importantly, the Government must have a comprehensive understanding of UK exporters to ensure that the work we do to build and grow UK export capability is properly targeted at and tailored to businesses where it will deliver the maximum benefit. My noble friend Lord Lansley articulated this topic very well when we debated his amendment on trade promotion and on ensuring businesses can access these opportunities.
Although much data already exists, we must always be alive to opportunities to improve our knowledge. Clause 7 sets out the powers needed for the Government to collect data in order to establish the number and identity of UK businesses exporting goods and services, particularly smaller businesses and sole traders, which may not be readily identifiable from existing data but which may benefit from a helping hand from government to reach existing and new markets.
The regulations under Clause 7(3) can set out only the types of information that may be requested and how that request is made; they cannot be used by HMRC to compel a respondent to provide information. Including new questions within the relevant tax returns will require an affirmative SI to amend the relevant legislation. This is the purpose of Clause 7(4). By deleting this provision, as Amendment 85 would do, government’s ability fully to implement the new voluntary exporter question would be restricted.
My noble friend Lady Noakes raised a number of important points, which I share. DIT analysis has shown that collecting the information through this approach is the cheapest, most effective mechanism and presents the lowest burden to business. In addition, as I have indicated, businesses will not be compelled to provide the Government with this information. It would not be possible for HMRC to impose penalties on businesses for not responding to the question.
Our analysis has also identified that a mandatory question might result in a potentially complex enforcement and compliance regime for businesses that do not complete the question. As the Committee probably realises, this would lead to millions of pounds in additional business burden each year and increased costs to government, when the intention of this measure is to improve our understanding of exporters across the country. I hope that reassures my noble friend and the Committee. I also remind noble Lords that the approach in Clause 7 has been reviewed and agreed by the Delegated Powers and Regulatory Reform Committee.
On Amendment 87, on data sharing, I should make it clear that Clause 8 is intended to outline functions relating to trade which the Minister of the Crown holds, and which may not be immediately obvious.
It is not the intention of the clause, or the Bill, to outline all functions relating to trade for all bodies; indeed, as I am sure noble Lords will recognise, the sheer breadth and number of such functions means it would not be possible to do this. I hope this gives some reassurance to my noble friend Lord Trenchard.
Amending Clause 8 in the way my noble friend Lady Noakes suggests would constrain its use in a way that I am sure she did not intend. For example, the DIT and the devolved Administrations would not be able to receive the exporter information collected by HMRC under Clause 7(1), other than for the specific purposes listed in Clause 8(2)(a) to (c). That would hinder export promotion functions and, ultimately, impact on UK businesses that government is committed to helping, particularly SMEs, as I mentioned earlier.
I turn now to Amendment 88, which is also on data sharing. This would limit the use of data by a body with a public function related to trade where the onward sharing of processed data with a partner body would be necessary for carrying out that public function. For example, the DIT might wish to share record-level analysis of data that we have processed on food products with Defra to inform the setting of tariff quotas. Under the proposed amendments, this would not be possible and the Government would not be able to use the most detailed information for collective decision-making.
However, I do understand the concerns of my noble friend in relation to data sharing and I would like to reassure the Committee of the safeguards that we have put in place around the collection, handling and processing of information collected under this clause. The data-sharing powers in the clause are permissive, so all instances of data sharing and onward disclosure must be approved by HMRC. Criminal penalties for any unauthorised sharing of data will apply under the existing Commissioners for Revenue and Customs Act 2005. Nothing in the clause permits the disclosure of information that is not otherwise permitted in data protection law, including the Data Protection Act 2018 and the Investigatory Powers Act 2016. I hope that that will offer some reassurance to my noble friend Lady Neville-Rolfe and the noble Lord, Lord Grantchester.
I hope that the clarifications I have given will provide noble Lords with the reassurances that are being sought, and it is on that basis that I would ask that the amendment should be withdrawn.