Economic Activity of Public Bodies (Overseas Matters) Bill: call for evidence

Aims of the Bill

As introduced, the Bill intends to prevent “public bodies when making decisions about procurement and investment from considering a country or territory of origin or other territorial considerations in a way that indicates political or moral disapproval of a foreign state.” It would also prevent public bodies from making statements indicating that they would have done so if it were lawful.

Such boycotts or divestments (reduction of existing investments) by public bodies would potentially be liable to investigation and fines under the legislation.

The Bill does not prevent public bodies from complying with formal UK sanctions, embargoes, and restrictions. Clause 3 of the Bill gives the Government the power to make regulations to exempt certain countries or territories from the restrictions. The Government intends for Russia and Belarus to be exempted immediately upon commencement.

However, the Bill does not allow for such regulations to exempt Israel, the Occupied Palestinian Territories and the Occupied Golan Heights.

The Bill’s clauses

Clauses 1 to 4 of the contain the key provisions of the Bill. Clauses 1 and 2 would forbid public authorities from making procurement or investment decisions based on their own moral or political disapproval of policies or conduct by foreign authorities. Clause 3 would provide for exemptions to this ban. Clause 4 would forbid public authorities from making statements indicating that they intend to make decisions on a basis prohibited by clauses 1 and 2, or that they would do so if it were lawful.

Clauses 5 to 11 set out how the ban introduced by the Bill would be enforced. It would generally be subject to judicial review by the High Courts or the Court of Session in Scotland, when applicable to decisions taken by public authorities. For decisions and statements which cannot be challenged by judicial review, a specific enforcement regime would be introduced.

Clauses 7 to 9 would give the Government or another designated enforcement authority tools to investigate potential breaches, request public authorities to comply with its decisions and finally to issue a fine. 

Clauses 12 and 13 would apply the restrictions on procurement and investment decisions in Clauses 1 and 4 of the Bill to local Government pension schemes.

Clause 14 sets out how this Bill relates to procurement legislation. Clause 15 would amend Section 17 of the 1988 Local Government Act, which prohibits local authorities from taking into account non-commercial considerations in procurement decisions.

The Bill contains nine delegated powers. Regulations made using these powers would be passed following the draft affirmative procedure, except sometimes for in urgent circumstances, where regulations could be passed by the made affirmative procedure.

Follow the progress of the Economic Activity of Public Bodies (Overseas Matters) Bill

On 19 June 2023, the Economic Activity of Public Bodies (Overseas Matters) Bill 2022-23 was introduced into the House of Commons.

The Bill’s second reading was held on Monday 3 July 2023.

• Bills before Parliament: Economic Activity of Public Bodies (Overseas Matters) Bill
• Read Explanatory Notes: Economic Activity of Public Bodies (Overseas Matters) Bill
• House of Commons Library Briefing Paper

Oral evidence sessions for this Bill are expected to be held on 5 and 7 September.

Guidance on submitting written evidence

Deadline for written evidence submissions

The Public Bill Committee is now able to receive written evidence. The sooner you send in your submission, the more time the Committee will have to take it into consideration and possibly reflect it in an amendment. The order in which amendments are taken in Committee will be available in due course under Selection of Amendments on the Bill documents pages. Once the Committee has dealt with an amendment it will not revisit it.

The first sitting of the Public Bill Committee is expected to be on Tuesday 5 September and the Committee is scheduled to report by Thursday 14 September. However, please note that when the Committee concludes its consideration of the Bill it is no longer able to receive written evidence and it can conclude earlier than the expected deadline of 5.00pm on Thursday 14 September. You are strongly advised to submit your written evidence as soon as possible.

Your submission should be emailed to scrutiny@parliament.uk

Further guidance on submitting written evidence can be found here.

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