Local Government (Exclusion of Non-commercial Considerations) (England) Order 2022

“the location of the business activities or interests of a contractor”

is Russia or Belarus.

As council leaders have requested, this order will allow relevant authorities the flexibility to terminate proposed and subsisting contracts should they so wish. It will allow them to take comparable action to central government, as set out in the PPN, and ensure they are not funding Putin’s war machine. It is important to note that the Government are not mandating the termination of contracts nor creating new burdens on local authorities. This is a permissive power and the decision to terminate contracts rests with the authorities in question. As the PPN sets out for central government, and as my right honourable friend the Secretary of State has advised local authority leaders, decisions to terminate such contracts should be made on a case-by-case basis, in accordance with the terms of the contract, and only where an alternative supplier can be sourced in line with value for money and affordability, and with minimal disruption to public services.

It is important to note that this policy will not enable these bodies to instigate their own unofficial municipal foreign or defence policies, but will not prevent them from undertaking their own divestment measures where these align with official government sanctions, as in this case.

As I have said, this will not add a new burden to local authorities. Nevertheless, the Government remain committed to engaging with any local authority with concerns about its financial position or service delivery or that may be facing pressures that it cannot take steps to manage locally. I reaffirm that commitment today.

This Government send a clear and strong message: Russia and Belarus should not benefit from public contracts and from the British taxpayer. We condemn Russia’s unprovoked, premeditated and illegal war. Across the United Kingdom and at all levels of government we remain steadfast in our support to ensure that Ukraine wins its battle for self-determination and that Russian forces withdraw.

This Government have introduced financial and investment sanctions. We provide military support, humanitarian aid and lead international efforts to support Ukraine’s objectives. We will continue to use all levers at our disposal in central government and, in the case of this order, local government, to cut off funds to Vladimir Putin’s war machine and demonstrate that we will not tolerate this abhorrent attack on Ukraine. I hope your Lordships will join me in supporting the proposed order. I commend it to the House.