Lords Reject Debate as AI Centralised, Payments Reform Advanced

High-Level Summary

The House of Lords scrutinised a broad set of domestic policies and legislation. Peers questioned ministers on a proposed visitor levy, fisheries bycatch measures, land use and farming, and Natural England’s gamebird licensing. A Private Notice Question examined machinery‑of‑government changes placing artificial intelligence policy at the centre of government. The House rejected an Opposition motion for an immediate debate on new government policies, progressed the Sporting Events Bill to the Commons, approved environmental permitting regulations, examined a major local government reorganisation statement, and took the Commercial Payments Bill through Committee with numerous government amendments agreed and further issues probed.

Detailed Summary

Domestic Travel and Holidays: Visitor Levy (Oral Question)

Context: Lord Sharpe asked about the impact of a visitor levy on domestic travel costs. Lord Lemos said decisions would rest with local mayors: “Mayors will decide whether introducing a levy is the right choice”, adding the Government expects local leaders could introduce a levy “before the end of this Parliament” and “Of course we will not impose a levy from the centre”. Participation and arguments: Peers queried effects on lower‑cost holidays and small operators and pressed for reliefs, including: “will the Government enact an emergency 5p cut on VAT”. Support for levies in some city‑regions was cited: “The levy will allow us to invest in the infrastructure these visitors need”. On scope, ministers indicated further detail would follow consultation and that plans relate to mayoral areas: “those plans relate to places where they are”. Outcome/next steps: No policy change was announced (not stated in the transcript). The consultation response will be published “in due course”.

Bycatch Risk Prioritisation Framework (Oral Question)

Context: Baroness Jones asked when the Bycatch Risk Prioritisation Framework would be published. The Government said a report “will be published by the end of the year” and will target “species, areas, fishing gears and fisheries that need the most attention”. Participation and arguments: Ministers said a seabird bycatch action plan would act as a template for future plans and that remote electronic monitoring (REM) is being made a statutory requirement in the pelagic fishery: “we are now working towards making it a statutory requirement in the pelagic fishery”. Sustainability alongside industry needs was emphasised: “we must recognise that we need sustainability alongside that”. On salmon bycatch, Defra is exploring better data collection, including REM. Outcome/next steps: Publication this year; plans to roll out REM more widely over time, including across “vessels of all sizes”. Specific targets and timelines beyond year‑end publication were not set (not stated in the transcript).

Farming and Food Production: Land Use Framework (Oral Question)

Context: Baroness McIntosh asked about impacts of proposed changes in the Land Use Framework. The Government said the framework “strengthens our commitment to maintain overall food production in England” and that analysis shows this is achievable alongside land use change. Participation and arguments: Ministers stressed multifunctional land use, protection of high‑grade farmland, and productivity improvements; on solar, “Expanding land use for renewable energy will not come at the expense of our best agricultural land”. Support programmes were cited, including “at least £200 million through the farming innovation programme”. On trade, “we will not have food that is produced to lower standards”. Tenancy concerns were acknowledged, with some terms “now … down to five years”. Outcome/next steps: No new commitments beyond existing schemes and policy positions (not stated in the transcript).

Natural England: Gamebird Release Licensing (Oral Question)

Context: Lord Harlech asked about Natural England’s (NE) approach to gamebird release licensing. The Government affirmed NE’s role and expertise: “Natural England is the licensing authority … and has the required expertise”. Participation and arguments: In response to broader criticism of arm’s‑length bodies, ministers referenced a review and said, “we are actively looking at how we can make the arm’s-length bodies in Defra much more efficient”. They reiterated support for “well‑managed estates”, noted avian influenza’s relevance to licensing, and said of a recent judgment: “we will obviously be looking at the judgment and analysing it”. On wider conservation, delivery needs to accelerate: “we have tried to make changes and crack on”; confidence in NE’s chair was confirmed. Outcome/next steps: No immediate policy changes were announced (not stated in the transcript).

Department for Science, Innovation and Technology: Abolition (Private Notice Question)

Context: Lord Clement‑Jones asked about the abolition of DSIT and the merging of functions. The Government said AI policy is being “elevat[ed] … to the Office for the Prime Minister and the Cabinet”, with a new Cabinet‑attending AI Minister and an AI taskforce to help the Cabinet Office “co‑ordinate policy across government”. Participation and arguments: Functional moves were set out: “the AI Security Institute will be part of the Office for the Prime Minister and the Cabinet … UK Research and Innovation fund is moving to DBIST … The Government Digital Service is moving to DCMS and the sovereign AI fund is also moving to DBIST”. Ministers argued this puts science and AI “at the heart of government”, confirmed UKRI’s £9.22 billion R&D budget continues and “will remain” across core research categories, and said the Business Secretary “will reach out” to reassure the sector. Outcome/next steps: Changes to be implemented with further appointments and details to follow (not stated in the transcript).

Business of the House: Motion on Standing Orders (debate and division)

Context: Lord True moved to dispense with Standing Order 38(4) to allow an immediate take‑note debate on the new Government’s policies. He cited the Ministerial Code: “When Parliament is in session, the most important announcements of government policy should be made in the first instance in Parliament”. He said the debate would be short and without a vote. Participation and arguments: The Leader of the House opposed the Motion as unnecessary and premature: “This is day 2 of a new Prime Minister. The Government are still being formed”, noting that Written Ministerial Statements and a PNQ had been provided. During debate, reference was made to Commons scrutiny guidance being updated to reflect modern media practices. Outcome: The House divided and the Motion was defeated: “Ayes 173, Noes 234”.

Environmental Permitting (Waste Controlling or Transporting) and Relevant Functions of Primary Authorities (Amendment) (England) Regulations 2026 – Motion to Approve

Outcome: The House approved the draft regulations without division: “Motion agreed.”.

Sporting Events Bill [HL] – Third Reading and Passing

Context: Before Third Reading, the Minister updated the House on the legislative consent position, with engagement ongoing with devolved Governments. The Bill seeks “a framework that enables certain sporting events to benefit from the enhanced commercial protections” and to offset public costs. Participation and outcome: Front Benches and Back Benchers were broadly supportive; one Peer said “the changes we made here last week strengthen the Bill”. The Bill was read a third time and sent to the Commons: “Bill passed and sent to the Commons”. Next steps: Further engagement with the sector over the summer and a major events strategy in the spring.

Local Government Reorganisation – Statement (and Q&A)

Context: The House took questions on a Commons Statement announcing further decisions to replace two‑tier councils with new unitaries. The Statement argued two‑tier structures “divide responsibilities, slow down decisions, duplicate costs and blur accountability”, projected around £1 billion net savings by 2032‑33, and provided capacity funding: “£900,000 per new unitary council … [plus] up to £150,000”. Elections are planned for May 2027, with new councils operational from April 2028. Participation and arguments: Peers queried consistency with principles on population, boundaries and consent, and raised gerrymandering concerns. The Minister said “Each proposal has been considered carefully against the published criteria”, that 500,000 population was a guide not a fixed threshold, and emphasised growth: “I make no apologies for the growth focus”. Outcome/next steps: Decisions for Cambridgeshire & Peterborough and West Sussex were deferred “as soon as possible and no later than October”.

Commercial Payments Bill [HL] – Committee (selected issues)

Context: The Committee considered how payment clocks start/stop, verification, scope, payment periods, public sector alignment, construction retentions, and the Small Business Commissioner (SBC). Ministers resisted prescribing notice mechanics, saying the Bill’s approach is “clear, familiar and practical”, and confirmed that longer verification can be agreed if “fair and reasonable” for complex goods and services. An attempt to regulate online marketplaces as payers was rejected as beyond scope: “the Bill is not intended to regulate the wider intermediary relationship”. Payment periods and public sector alignment: The Government defended a 60‑day cap as a balanced outcome of consultation: “The 60-day period was set following extensive consultation with industry”, while retaining 30‑day terms for public authorities in line with procurement rules. Government amendments aligned the Procurement Act 2023 so public authorities must pay “before the end of the period of 30 days beginning with the day on which an invoice is received”, and clarified construction payment terms under public procurement [refs: a1074.3/1–a1074.3/7; a1091.6/1–a1091.6/4]. Construction retentions: Ministers set out plans to ban retention clauses after a transition, arguing “retentions are neither an effective way to prevent defects or to remedy poor-quality work” and harm supply‑chain cash flow. SBC powers, resources and related issues: Regulations will set adjudication timelines, with the department “working closely with the commissioner to assess the staffing and funding needed” before commencement. The Government are considering making the SBC a prescribed person for whistleblowing, noted the commissioner already meets accessibility standards and is exploring AI/data tools, and said insolvency priorities will not be altered: “Providing preferential treatment to one group of suppliers would disadvantage other creditors”. Ministers confirmed statutory interest already exists in law and will be strengthened by the Bill. Many probing amendments were withdrawn; numerous government tidying amendments were agreed.