Bank Resolution (Recapitalisation) Bill [HL]

Third Reading

15:21:00

Motion

Moved by

That the Bill be now read a third time.

A privilege amendment was made.

15:21:00

Motion

Moved by

That the Bill do now pass.

My Lords, the Bank Resolution (Recapitalisation) Bill will enhance the UK’s resolution regime, providing the Bank of England with a more flexible toolkit to respond to the failure of banks. The recapitalisation mechanism introduced by this Bill will strengthen protections for public funds and promote financial stability, while promoting economic growth and the competitiveness of the UK financial sector by avoiding new upfront costs on the banking sector. I thank all noble Lords for their valuable scrutiny and engagement which has genuinely led to some important improvements to this Bill. I would like to formally thank the Opposition Front Benches, particularly the noble Baroness, Lady Vere of Norbiton, for her valuable input and overall support for the Bill and its intentions. I thank the noble Baronesses, Lady Bowles, Lady Noakes and Lady Kramer, and the noble Lord, Lord Vaux, for the invaluable expertise they have brought throughout the passage of this Bill. I thank my noble friend Lord Eatwell for his support for the Government’s position and my noble friend Lord Sikka for his contributions to the debate. The Government will, of course, continue to reflect carefully on all the points raised and debated as the Bill moves to be debated in the other place. I also extend my gratitude to my officials in the Treasury for their hard work in developing this highly technical Bill. Specifically, I thank Henry Grigg, Prakash Parameshwar, Katie Evans, Helena Lowcock, Ted Hu, Ed Henley, Chris Goodspeed, Rosie Capell, Andrew Clark, Minesh Gadhvi, Kate Lowdon, George Barnes and Will Smith for providing me with their support as the Bill passed through this House. I also thank the House staff, parliamentary counsel and all other officials involved in the passage of this Bill to this point. I am grateful for the engagement with this Bill and its broad support across all Benches, which will ensure that the bank resolution regime is as effective as possible. I beg to move.

My Lords, I also thank the officials and other noble Lords, the Minister and, notable among those who did most of the heavy lifting, the noble Lord, Lord Vaux, and the noble Baronesses, Lady Vere and Lady Noakes. This Bill contains useful measures improved by amendments but is notable for diverting private bank money to addressing a matter of public interest in place of public funds. For that reason, I hope that the Government will reflect on the wisdom of keeping the amendment limiting the mechanism to small banks.

My Lords, I am pleased that this Bill leaves your Lordships’ House to wend its way to the House of Commons for further consideration. The Bill has widespread support and has been somewhat improved by the deliberations in your Lordships’ House over the last few months. I am extremely grateful to the core crack team pulled together specifically for this Bill: my noble friend Lady Noakes, the noble Baroness, Lady Bowles, and the noble Lord, Lord Vaux, whose expertise—far greater than mine—ensured that the roughest edges were smoothed away. I am also grateful to my noble friend Lady Penn, who so skilfully stepped up for Second Reading, and to the new opposition research team for their support. Last but certainly not least, I am enormously grateful to the Minister and his officials, who were as accommodating as they felt able to be in improving the Bill. All noble Lords will share my hope that this mechanism is never, ever used but if it is, the statutory framework is now there to support one or more small banks through the resolution process and ensure that the first port of call is not taxpayers’ funds.

I thank again all noble Lords who have participated in debates on the Bill. I look forward to working together in the future on similar issues.

Bill passed and sent to the Commons.