My Lords, with the leave of the House, in moving Motion A I will also speak to Motion B.

We are here again to discuss the Bill for what I am pleased to say is, I hope, the last time. As my ministerial colleague in the other place, Kevin Hollinrake, said earlier today, the House of Commons has expressed its strong will on these remaining issues three times now. I therefore hope that noble Lords will support the Government’s Motions this evening. I will keep my remarks brief.

I start with government Motion A on the failure to prevent fraud threshold. My noble and learned friend Lord Garnier’s amendment would have brought medium-sized organisations into scope by exempting only micro-entities and small organisations from the offence. The Government do not support any lowering of the SME threshold that we introduced, and I will briefly repeat the reasons why.

It is already an offence to perpetrate fraud. The objective of the new offence is to ensure that there is accountability where fraud occurs in large organisations, so there is simply no need to apply any such offence to smaller organisations, and it is more straightforward to use existing powers against smaller, less complex companies. Every time an offence like this is introduced, business owners end up distracted from running their businesses by the need to assess their compliance risks, which often involves taking professional advice. We assess that the revised threshold proposed by this amendment would cause medium-sized enterprises £300 million in one-off costs and nearly £40 million in annual recurring costs.

As my ministerial colleague flagged this morning, we have future-proofed this legislation by including a delegated power to allow the Government to raise, lower or remove the threshold altogether. As with all legislation, the Government will keep the threshold under review and will make changes if there is evidence to suggest that they are required. I therefore urge all noble Lords to follow the will of the other place and support the government Motion to reinsert the SME threshold.

I move to Motion B on the amendment tabled previously by the noble Lord, Lord Faulks, on cost protection in civil recovery cases. The Government remain of the view that this type of amendment would be a significant departure from a fundamental principle of justice—that of the loser pays—and therefore should not be rushed into without careful consideration. Furthermore, we have seen no clear evidence that this amendment would increase the number of cases taken on by law enforcement.

However, that is not to say that this type of amendment is necessarily a bad idea. That is why we have previously added a statutory commitment to the Bill to review the payment of costs in civil recovery cases in England and Wales by enforcement authorities and to publish a report on the findings and lay it before Parliament within 12 months.

Normally, with regard to civil cost reform in England and Wales, the Government would look to consult appropriate consultees, including the senior judiciary, the Law Society and the Bar Council. Enacting this reform now without a full review would not allow judges and relevant organisations, or their counterparts in Northern Ireland and Scotland, to comment on how it would be read and applied in practice. It would therefore be irresponsible for us to rush into making such a significant change at the end of the Bill without full consideration by Government and further scrutiny by Parliament. With that, I hope all noble Lords will agree that this is the responsible approach to take and therefore support the Government’s position.

In conclusion, I encourage all noble Lords to agree with the Government’s position on both areas. It is vital that we achieve Royal Assent without delay so that we can proceed to implement the important reforms in this Bill as quickly as possible. I beg to move.