Economic Activity of Public Bodies (Overseas Matters) Bill

Key Points

• - Core ban on public authorities allowing moral or political disapproval of a foreign state to influence economic decisions (procurement, investment, sanctions/exports).
• - Parliament can exempt specific countries; however, Israel, the Occupied Palestinian Territories and the Occupied Golan Heights cannot be removed from the ban via secondary legislation; the territorial scope is a major area of debate, including how devolved nations fit in.
• - Higher education sector is affected in limited ways (procurement/investment decisions), with protections for students and visiting speakers, and staff acting only on behalf of the public authority.
• - Enforcement and liability focus on the public authority (not individuals); information notices and a “reasonable observer” test would be used to check for influence, with civil penalties discretionary and set by the Secretary of State.
• - A large number of amendments from cross‑party peers sought to narrow or widen the bill (e.g., regional devolution changes, genocide or human rights exemptions, pre‑notices for compliance, and how and when ministers can amend the Schedule); many were withdrawn or defeated, reflecting ongoing policy tensions around scope, rights, and national sovereignty.
• - Document trail shows ongoing formal clarifications from the Government (including letters and updated Explanatory Notes) to explain scope, scope boundaries (e.g., public authorities vs individuals), and how enforcement would work, tied to a manifesto pledge and international-law considerations.

Progress

The bill started in the Commons and passed its Third Reading in January 2024. It then moved to the Lords for Committee Stage, where from March to May 2024 peers debated a wide range of amendments. It remains in Committee stage in the Lords, with further scrutiny and potential changes before any final passage.

Voting

In the Commons, the bill drew cross‑party support from Labour, Liberal Democrats, SNP and others, while Conservative MPs largely opposed; the Third Reading voting outcome reflected a government-backed package, and a separate Reasoned Amendment on Third Reading was defeated. In the Lords, peers have tabled many amendments (principally from cross‑party groups) to narrow or broaden the policy, subject to later votes, as the bill continues its passage in that House.