Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023
(1 year, 1 month ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Economic Secretary to the Treasury (Andrew Griffith)
I beg to move,
That the Committee has considered the Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023 (S.I. 2023, No. 319).
It is a pleasure to serve with you in the Chair, Mr Hollobone.
As right hon. and hon. Members will be aware, Silicon Valley Bank UK Ltd was sold on Monday 13 March to HSBC. Customers of SVB UK are now able to access their deposits and banking services as normal. The transaction was facilitated by the Bank of England, in consultation with the Treasury, using powers granted to it by Parliament through the Banking Act 2009. In doing so, we limited risk to our tech and life sciences sector and safeguarded some of the UK’s most promising companies, protecting customers, financial stability and the taxpayer. The solution was a win for taxpayers, customers and the banking system.
SVB UK has become a subsidiary of HSBC’s ringfenced bank. Ringfencing requires banking groups that hold over £25 billion of retail deposits to separate their retail banking from their investment banking activities. The regime provides for a four-year transition period for an entity acquired as part of the resolution process before it becomes subject to ringfencing requirements. As a result of that existing legislation, SVB UK is not currently subject to ringfencing requirements. However, HSBC UK, the parent company of SVB UK, remains subject to the ringfencing regime.
To facilitate the transaction, we laid in both Houses of Parliament on Monday 13 March a statutory instrument, using powers under the Banking Act 2009, to broaden an existing exemption in ringfencing legislation with regard to HSBC’s purchase of SVB UK. The exemption allows HSBC’s ringfenced bank to provide below market rate intra-group funding to SVB UK. That was crucial for the success of HSBC’s takeover of SVB UK, because it ensured that HSBC was able to provide the necessary funds to its newly acquired subsidiary.
HSBC has since stated publicly that it has provided approximately £2 billion of liquidity to SVB UK—money that it required to continue to meet the needs of its customers, and which this instrument facilitated. The Bank of England and the Prudential Regulation Authority are fully supportive of this modification to the ringfencing regime as a necessary step to facilitate the sale.
In view of the urgency, and given that this statutory instrument was crucial in enabling the sale, the Treasury determined that it was necessary to lay the instrument using the made affirmative procedure, under its powers in the Banking Act 2009. Parliament provided the Treasury with those powers for exactly such situations, recognising that exceptional circumstances can arise when the Government must take emergency action in the interests of financial stability, depositors and taxpayers.
The statutory instrument also makes a number of modifications to the Financial Services and Markets Act 2000 in relation to the rule-making powers of the PRA and the Financial Conduct Authority. Specifically, the rule-making powers are modified to ensure that regulators can exercise them effectively when they relate to the Bank of England’s transfer of SVB UK to HSBC, and the write-down of SVB’s UK shareholders and certain bondholders. The statutory instrument also waives the requirement for the regulators to consult on certain rule changes related to the sale.
In addition to today’s measure, the Government will in due course lay another statutory instrument to make further changes to the ringfencing regime with regard to HSBC’s purchase of SVB UK.
Alun Cairns (Vale of Glamorgan) (Con)
It is a privilege to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Minister and the Treasury for the way in which they moved swiftly to facilitate the acquisition of SVB UK by HSBC.
My hon. Friend will be aware of the questionable confidence in some banks around the world. Has he made an assessment of whether he will need to come before Parliament again to propose similar adjustments to regulations for other banks that might find themselves in the same situation as SVB UK, or should we be confident that the UK banking sector in the UK is sufficiently robust?
Andrew Griffith
I thank my right hon. Friend for his question. Primacy for financial stability sits within the Bank of England and the Financial Policy Committee. All I can say is that the Governor of the Bank of England has confirmed that, in his view, the UK banking system remains
“safe, sound and well capitalised”.
I hope that my right hon. Friend understands that it would not be right for me to step outside those words.
Hilary Benn (Leeds Central) (Lab)
The Minister said a moment ago that HSBC has to date provided some £2 billion to SVB to enable it to service its customers. Are such sums reported regularly to the Bank of England and regulators? Does he anticipate that HSBC will need to transfer further sums to continue to support depositors?
Andrew Griffith
Colleagues should know that I have nearly concluded my initial comments, if they want to intervene.
The truth is that I do not know whether such sums are reported regularly. Within the financial regulation system, the PRA has strong oversight, often with quite intrusive reporting requirements. I will write to the right hon. Gentleman about the ongoing nature of reporting. It is public knowledge that the bank had suffered withdrawals in the days immediately running up to the action we took, so clearly the money’s purpose was, in effect, to replenish it so that the money was in funds for all the bank’s clients.
The second statutory instrument that we will lay in due course will allow SVB UK to remain exempt from the ringfencing rules beyond the four-year transition period, subject to certain conditions—in effect, to make that permanent. That second exemption is not required immediately, and it will not be subject to the made affirmative procedure, but the House will have an opportunity to debate it after it has been introduced. The exemption was deemed critical to the success of the sale as it ensured that SVB UK could remain a commercially viable, stand-alone business, serving its clients within the HSBC group.
There was a clear determination that the measures were crucial to facilitating the purchase of SVB UK by HSBC—not just by the Government, but by the Bank of England. The UK has a world-leading tech sector, with a dynamic start-up and scale-up ecosystem, and the Government were pleased that a private sector purchaser was found. I therefore hope that right hon. and hon. Members will join me in supporting the legislation.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
It is a pleasure to serve with you in the Chair, Mr Hollobone.
The Labour party welcomes the quick work done by the Treasury, the Bank of England and regulators to secure the HSBC rescue deal for the UK arm of Silicon Valley Bank. SVB UK serves a high concentration of life science and tech companies in this country. As the Minister said, those firms play an indispensable role in driving growth and innovation across the economy. That is why we will give our full support to the statutory instrument.
I have a number of questions about the detail of the measure, including on where it sits in the Government’s wider strategy for financial stability. In the US, we saw that SVB made financial decisions based on an assumption that interest rates would remain low for some time. That contributed to its failure. We have also seen difficulties in other banks, such as Credit Suisse. How is the Minister working with the Bank of England, regulators and national partners to review the impact of interest rate rises and wider uncertainty on our financial system? What steps is he taking to mitigate risks?
As the Minister set out, under the SI, HSBC has been given an exemption from certain ringfencing requirements so that it can provide preferential intra-group lending or funding to SVB UK. Will he set out in further detail the background to and justification for that decision, as well as the Government’s announced intention to permit SVB UK to remain exempt from the ringfencing rules beyond the four-year transition period? Of course, we recognise the circumstances that SVB UK is in but, as he knows, ringfencing reforms were introduced for good reason: to protect savers and taxpayers from a banking crisis. I need reassurance from him that, contrary to what has been suggested, the Government do not propose any further tinkering with the ringfencing regime beyond this measure for SVB UK.
I wanted to bring up the risks to start-ups. The risk that the collapse of SVB poses to the tech sector underlines the importance of ensuring that UK start-ups have access to a deep and diverse pool of capital. What reassurance can the Minister provide that under HSBC’s ownership, SVB UK will continue to be able to support early-stage tech and life-science businesses in the UK? Beyond that, what will the Government do to ensure that start-ups have access to a wide pool of patient capital?
As I set out, we support the SI, which helps to protect the health of SVB UK and the tech sector that it supports, but I would like reassurance from the Minister on my concerns.
Stewart Hosie (Dundee East) (SNP)
It is a pleasure to serve under your chairmanship, Mr Hollobone. The Minister certainly explained why the exemption is necessary, and what it was for: it allows HSBC to make £2 billion of liquidity funding available at below market rates. So far, so good. I will put on record that all involved did an extraordinary job over a weekend to resolve this difficulty, and that was absolutely the right thing to do.
The explanatory memorandum and the Minister have both mentioned a subsequent SI that will extend the exemption from ringfencing beyond four years. I have a similar question to that asked by the Labour Front Bencher, the hon. Member for Hampstead and Kilburn. The ringfence was introduced—I am sure that many remember the circumstances—to stop investment banks using retail deposits as a piggy bank, and then losing all those deposits at the casino. While it may be necessary to extend the exemption beyond four years, will it be possible to shrink that period? Could there be a return to ringfencing within four years? What supervision or action is there by the PRA, the Treasury and others to ensure that SVB UK maintains its capital, and its ongoing work in the area of retail deposits and commercial and investment lending, and to ensure that it does not seek to extend its risky investment lending, and to use retail deposits for that, beyond these four years?
Andrew Griffith
It is always a pleasure to follow the hon. Member for Hampstead and Kilburn and the right hon. Member for Dundee East as I master my brief.
The hon. Member for Hampstead and Kilburn talked about the wider issue of interest rates in the current environment. The Bank of England has processes in place to monitor their impact. Each year it carries out a stress test that involves plausible economic scenarios. The 2022 stress test included a rapid rise in interest rates—the UK bank rate was assumed to rise to 6% in early 2023—and higher global interest rates. The hon. Lady will be as keen as I am to see the results of that test, which will be published in the summer. This year, the Bank will also run, for the first time, an exploratory scenario exercise based on non-bank financial institution risks, which I imagine are also of concern to the hon. Lady.
The hon. Member for Hampstead and Kilburn and the right hon. Member for Dundee East talked about the background to and justification for the exemption. To put it simply, it was a prerequisite for the deal in order for SVB to continue to service its existing range of clients. In the circumstances, the view of the Treasury and the Bank of England was that it was expedient. While I do not think that hon. Members have misunderstood the situation, I was clear that the exemption is absolutely not one for HSBC itself. Its ringfenced activities and balance sheet remain within the ringfence, with all the protections that involves. Whether or not I agree with the characterisation of the right hon. Member for Dundee East, all of those protections remain as is. The simple fact is that SVB UK, a much smaller bank, accounts for roughly fewer than 1% of clients. I can be bolder: I think fewer than 10% of 1% of the company’s clients will sit within SVB UK, and there will, of course, be provisions to prevent the migration of one to the other. Effectively, the objective of what we are doing will maintain the status quo.
The hon. Member for Hampstead and Kilburn asked whether there would be any further “tinkering” with the ringfencing regime. I assure her there will not be any tinkering, but there might well be appropriate reforms. They will draw on the work of Sir Keith Skeoch, with whom she is probably familiar, and also the expressions of interest that are out in the field. She might wish to engage with that process and make sure her views are well represented. The purpose of doing so is always to mobilise productive capital in the right way. While there are many positive aspects to the ringfence, if it is implemented wrongly, it can suppress the availability of capital for start-ups, scale-ups and SMEs, which none of us would intend.
After the hon. Lady suggested that we might tinker with the ringfence, she spoke about what we are doing to help the sector in question, which is a core focus for the Government. The Chancellor said in the Budget that we will come forward with a full package of measures by the autumn statement. Work is going on right now to ensure that our most cutting-edge companies can access capital at every part of the curve—from scale-up from the first round, all the way through to the listed environment. That includes the £250 million LIFTS—long-term investment for technology and science—scheme, which we launched in the Budget. We are also progressing the Department for Work and Pensions consultation on the value-for-money framework relating to capital trapped in pensions, as well as the potential for pension scheme consolidation and lifting the charge cap on pensions. We also extended the British patient capital programme by a further 10 years until 2033-34, with an increased focus on the most R&D-intensive industries. That will put another £3 billion behind opportunities for the most productive capital.
The hon. Member for Hampstead and Kilburn asked for reassurance that, under HSBC’s ownership, the sector would continue to be supported. I have had that assurance from the bank’s executives. It is not for the Government to commit to how the bank will run that business, but it is putting capital behind it and has talked about a growth strategy. As I understand it, it has retained the existing management, who were well regarded in the sector. Although no one should be naive, and we will keep a close eye on the situation, everything that I have seen to date gives me the reassurance that the hon. Lady wants.
Question put and agreed to.
Draft Building (Public Bodies and Higher-Risk Building Work) (England) Regulations 2023
(1 year, 1 month ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)
I beg to move,
That the Committee has considered the draft Building (Public Bodies and Higher-Risk Building Work) (England) Regulations 2023.
It is a pleasure to see you, Sir Robert, and to serve under your chairmanship. Under the Building Safety Act 2022, the Government are introducing a more stringent regulatory regime during design and construction, with the Building Safety Regulator becoming the sole building control authority for building works defined as higher risk. Under the current regime, there is an historical exemption available to public bodies where, if approved by the Government, they can obtain a partial or full exemption to the building control procedural requirements. The draft regulations will ensure that in future, public bodies will not be able to obtain an exemption to carry out building control on their own higher-risk building work. The Building Safety Regulator will instead carry that out for all higher-risk buildings, including those owned by public bodies.
The regulations are a small but important part of our ongoing reforms to improve the safety and standards of all buildings. First, the regulations remove the Minister’s ability to grant building control procedural exemptions to public bodies for higher-risk building work. In future, all higher-risk building work will be overseen by the Building Safety Regulator. The ability to grant exemptions for non-higher-risk building work is unaffected.
Secondly, the regulations require any public bodies with a partial exemption under section 54 of the Building Act 1984 to cancel their public body notice with the local authority if the building work becomes higher risk. Local authorities will also be required to cancel public body notices in the same circumstances. Currently, no public body is approved under this partial exemption system; therefore, the measures are being introduced for future use only, and they will not change existing arrangements. Only one public body has any type of exemption—the Metropolitan police—and separate regulations to be introduced later this year will change that exemption to apply only to non-higher-risk building work.
Thirdly, the regulations will allow the Building Safety Regulator to impose a fine of £7,500 on public bodies that have not cancelled their public body notice when building work becomes higher-risk building work. For the reasons outlined, I commend the regulations to the Committee.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to serve with you in the Chair, Sir Robert. I thank the Minister for that concise explanation. The regulations, as he said, simply ensure that building control on higher-risk buildings can no longer be undertaken by local authorities and other public bodies with a building control procedural exemption, but must instead be supervised by the new Building Safety Regulator. The regulations are necessary to ensure the proper functioning of the new building safety regime. The Opposition will support them.
As the statutory instrument before us is narrow, technical and uncontroversial, I do not intend to detain the Committee for any length of time in debating its specific provisions. I do, however, have two questions for the Minister—I had to work hard to get the questions on this one. First, I note that a full impact assessment has not been produced for the instrument, given that it is judged to have no significant impact, but have the Government made any estimate of how many fewer public body notices are likely to be required under the new regime?
Secondly, and more importantly, the Government sought views on the matter of restricting the activities and functions for building control bodies as part of their consultation on changes to the building control profession and the building control process for approved inspectors. The consultation closed only on 14 March and, according to gov.uk, the feedback submitted is still being analysed. While it is laudable that the Department should seek to move at pace to make amendments to the Building Act 1984 in connection with higher-risk building work carried out by local authorities and any other public bodies, the fact that we are passing the regulations before the consultation responses have even been analysed prompts the question of why the Government asked for feedback in the first place. Will the Minister therefore clarify whether the responses to the consultation have informed the drafting of the statutory instrument in any way, given that none of us would presumably wish to see consultees waste time making submissions that are effectively ignored?
Lee Rowley
I am grateful for the hon. Gentleman’s questions. I wrote down his first question, but I have lost it among my documents. Will he remind me of it?
Lee Rowley
The position is that, because the public body notices are not being utilised and the use of them is therefore minimal, the impact of their usage or the future need for them will also be minimal. On the second point, I am happy to write to the hon. Gentleman, in order not to detain the Committee any longer.
Question put and agreed to.
Draft Merchant Shipping (Fire Protection) Regulations 2023
(1 year, 1 month ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Transport (Mr Richard Holden)
I beg to move,
That the Committee has considered the draft Merchant Shipping (Fire Protection) Regulations 2023.
It is an honour to serve under your chairmanship, Ms Harris. The draft statutory instrument relates to the fire safety of all passenger ships on international voyages, a limited class of passenger ships on non-international voyages and all cargo ships of 500 gross tons or over. It makes provision for different generations of ship, with the fire protection requirements differing slightly between the generations.
The draft instrument will be made under safety powers conferred by the Merchant Shipping Act 1995. It is subject to the enhanced scrutiny procedures under the European Union (Withdrawal) Act 2018, because it revokes an instrument that was amended by section 2(2) of the European Communities Act 1972. However, the draft instrument does not implement any EU obligations.
The draft regulations implement the most up-to-date requirements of chapter II-2 of the international convention for the safety of life at sea 1974, known as SOLAS. They bring UK domestic law up to date and in line with internationally agreed requirements. They contain direct references to the vast majority of the SOLAS requirements. Those references are ambulatory, so future updates to the provisions will be given direct effect in UK law when they enter into force internationally. That assists us in keeping the UK up to date with our international requirements.
The draft regulations will revoke and replace the Merchant Shipping (Fire Protection) Regulations 2003 and the Merchant Shipping (Fire Protection: Large Ships) Regulations 1998. The 1998 regulations were amended through section 2(2) of the European Communities Act 1972. The draft regulations will further improve fire safety standards for ships. They will enable the UK to enforce the requirements against UK ships wherever they may be in the world, and against non-UK ships when they are in UK waters.
SOLAS chapter II-2 contains provision for structural fire protection, fire detection and fire extinction on ships. That includes, for example, prevention of fires and explosions, suppression of fire, escape from fire, operational requirements, alternative design and arrangements, and other requirements that are specific to particular situations. SOLAS is supplemented by the fire safety systems code and the fire test procedures code. All are amended from time to time at the International Maritime Organisation. A number of amendments have been agreed at the IMO and have come into force internationally.
Valerie Vaz (Walsall South) (Lab)
The Minister is making an interesting speech. I am looking at regulation 5(2)(d), which refers to fishing vessels. Does that include every size of fishing vessel? Obviously, the other regulations refer to ships. Does that include small fishing vessels as well as the larger ones?
Mr Holden
My understanding is that the regulations are for all cargo ships, but I will write to the right hon. Lady on the specifics if that is not the case for all fishing vessels.
Amendments in 20 resolutions have been agreed at the IMO since 2003 to further improve the safety standards of fire protection, but they have not yet been implemented into UK law. The UK supported those amendments during the IMO discussions, and as a party to SOLAS, the UK now has an obligation to implement those further updates.
The Department held an eight-week public consultation on the draft regulations. None of the five responses received were contentious, and no changes to the regulations were made as a result. Responses were issued, as well as a post-consultation report, which was published on gov.uk. We have 440 ships on the UK flag, 324 of which are partially owned in the UK. They are expected to be already compliant with the requirements of the draft regulations. Making the regulations will enable the UK to enforce the same fire protection requirements as other states.
Kevin Brennan (Cardiff West) (Lab)
Further to the question from my right hon. Friend the Member for Walsall South, there is reference in the draft regulations to smaller ships, which make up about 3% of the fleet and have fewer than 50 people employed on them. How does that relate to what my right hon. Friend was asking about small fishing vessels and whether the regulations apply to them?
Mr Holden
My understanding is that some fishing vessels over 500 gross tons, especially those with mixed functions on board—for example, canning at sea—are treated like cargo ships. Other smaller vessels are in different categories, but the measures apply to those larger vessels.
Making the regulations will enable the UK to enforce the same requirements as other states—requirements to which UK ships are currently subject when entering foreign ports. That will provide greater equality between UK shipping companies and foreign operators. Members have highlighted the importance of the regulations: they improve safety standards, meet the UK’s international obligations and ensure a level playing field for UK shipping companies. I trust that we have cross-party support for this statutory instrument, which implements important updates to SOLAS regarding fire safety in UK domestic legislation. I therefore commend the instrument to the Committee.
Mike Kane (Wythenshawe and Sale East) (Lab)
It is a pleasure to serve under your chairmanship today, Ms Harris.
Twenty resolutions relating to fire protection at sea have been implemented by the International Maritime Organisation since the UK integrated the Merchant Shipping (Fire Protection) Regulations 2003 into UK law. Those resolutions have, for example, updated the requirements for firefighting systems on ships by adding water mist nozzles to onboard sprinkler systems back in 2010. Another resolution, in January 2020, updated the requirements for ease of access to escape routes for ship passengers. A further resolution, in July 2004, updated the requirements for how dangerous and/or flammable goods should be stowed on board. All that will be implemented in UK law by this SI.
The draft regulations will apply to passenger ships engaged on international voyages. They will apply to a small class of passenger ships engaged on domestic voyages and to cargo ships of 500 gross tons and above, as the Minister said, engaged on both international and non-international voyages. They will also apply to sailing ships of 500 gross tons and above and to United Kingdom pleasure vessels of 500 gross tons and above.
We know how dangerous a workplace ships can be. Many carry dangerous or hazardous cargo and large amounts of fuel. They are cramped working environments, despite their size, and the ocean is very unstable. It is vital that we take steps to make those workplaces as safe as we can for all our seafarers, because when things go wrong at sea, escape routes and rescue missions can be as perilous as the fires our seafarers seek to escape.
Just a month ago, a Dutch-flagged vessel caught fire in the gulf of Riga when travelling between Lithuania and Latvia. The fire is thought to have broken out in the engine room, and staff tried valiantly to extinguish the fire. Because of the sheer size of the vessel—named the Escape, as it happens—and the very nature of its load, containers, it was thought that some of the cargo was hazardous. Thankfully, all 15 crew were picked up by a nearby vessel and did indeed escape.
Another recent example, in the last month, was the Felicity Ace, which was a specialist cargo ship carrying more than 4,000 cars that caught alight near the Azores. Again, thankfully, the vessel’s 22 crew members were evacuated, but the fire continued to burn for several days, fuelled by lithium batteries in electric vehicles on board. The rescue of this abandoned ship sadly ended in it sinking to the bottom of the Atlantic. The rescue was going well, but during towing it began to ingress water, lost its stability and sank. Thankfully, its fuel tanks remain intact, although there is no guarantee that that will remain the case, and it could lead to yet another environmental disaster. Thankfully, no souls perished on this occasion. However, there will be environmental damage caused by the incident, and damage to international supply chains will be colossal.
I have met multiple Ministers multiple times to debate such statutory instruments and to discuss elements of these regulations covering a number of safety areas, such as life-saving appliances, bilge pumping and warnings, damage stability, as well as these regulations covering fire protection. I asked some time ago what stage we were at with the delayed maritime legislation. I know the Minister several incarnations ago said he would write to me to update me, but I do not recall receiving that letter. I ask this Minister if he can help with this matter. Our priority must be ensuring that those working at sea or travelling on vessels as covered by the instrument are kept safe from harm. We will therefore not oppose this statutory instrument today.
Mr Holden
I thank the hon. Member for Wythenshawe and Sale East for his comments. The statutory instrument looks to implement fire safety requirements into UK domestic law, bringing our domestic law in line with international requirements and fulfilling our international obligations, and I will refer to a couple of the specific points raised.
On fishing vessels, only those over 500 gross tons that have an extra manufacturing facility on board, such as canning, are covered by this instrument. Fishing vessels themselves are covered by other regulations in this area, so I hope the right hon. Member for Walsall South will rest assured that that matter has been cleared up.
Regarding the broader issues around the maritime backlog, I am happy to write to the hon. Member for Wythenshawe and Sale East to let him know where we are on that matter. One of my predecessors, my hon. Friend the Member for Witney (Robert Courts), made a commitment to the Secondary Legislation Scrutiny Committee in October 2021 about clearing the backlog, and I will happily write to the hon. Member for Wythenshawe and Sale East with an update.
I hope that I have answered the questions raised today, as well as giving that extra commitment to the hon. Gentleman, and that the Committee will agree that this SI, which will improve fire safety requirements, is necessary. Given the safety requirements of the instrument, it is right that it is brought into law as soon as is practicable.
Question put and agreed to.
Draft Licensing Act 2003 (Coronation Licensing Hours) Order 2023
(1 year, 1 month ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for the Home Department (Miss Sarah Dines)
I beg to move,
That the Committee has considered the draft Licensing Act 2003 (Coronation Licensing Hours) Order 2023.
It is an honour to appear before you, Mr Stringer, even if a little untimely, and a pleasure to serve under your chairmanship.
The draft order will have the effect of extending licensing hours to mark the coronation of His Majesty the King. It is a great privilege to stand in Committee today in my capacity as a Home Office Minister to discuss a piece of legislation that is designed to facilitate a period of joy and celebration for our country. The coronation is an occasion of profound significance. A great many people will, I am sure, want to gather together and to raise a glass to His Majesty the King.
Under section 172 of the Licensing Act 2003, the Secretary of State can make an order relaxing licensing hours to mark occasions of exceptional national significance. I am sure that Members across the Committee will agree that the coronation is just such an occasion.
The Home Office conducted a public consultation to seek the views of the public. The majority of responses were in favour of the licensing extension. The responses also agreed with the proposed duration and location, and that the extension should apply only to sales of alcohol for consumption on the premises. The draft order is therefore to extend licensing hours in England and Wales on Friday 5 May, Saturday 6 May and Sunday 7 May until 1 am the following morning.
Wendy Morton (Aldridge-Brownhills) (Con)
I have no desire to slow down proceedings and, as I am sure the Committees appreciates, I wholeheartedly support this piece of delegated legislation—in fact, like most Members present, I am sure I will be out celebrating as well—but I have a specific question to ask the Minister. Where a licence has been revoked or suspended, will that suspension remain in place?
Miss Dines
That is a technical point to which I shall revert a little later.
The extension will apply to premises, licences and club premises certificates in England and Wales that license the sale of alcohol for consumption on the premises only, as mentioned. Such premises will be allowed to remain open without having to notify the licensing authority via a temporary event notice. The draft order covers only sales for consumption on the premises after 11 pm; it does not cover premises that sell alcohol for consumption off the premises, such as off-licences and supermarkets.
Premises that are licensed to provide regulated entertainment will be able to do so until 1 am on the nights covered by the draft order, even where those premises are not licensed to sell alcohol. That includes, for example, venues holding music events or dances, as well as theatres and cinemas.
Premises that supply late-night refreshment—the supply of hot food or drinks to the public between the hours of 11 pm and 5 am—but which do not sell alcohol for consumption on the premises, will not be covered by the draft order. Such premises will only be able to provide late-night refreshment until 1 am if their existing licence already permits it.
To revert to the matter raised by my right hon. Friend the Member for Aldridge-Brownhills, yes, revocations will remain in place and are unaffected by the draft order. I hope that that gives her some comfort for her constituent.
His Majesty the King’s coronation promises to be a joyous and uplifting occasion. A mood of celebration will descend across the country, and it is in that spirit that we seek this extension of licensing hours. I therefore commend the draft order to the Committee.
Sarah Jones (Croydon Central) (Lab)
It is a pleasure to serve under your chairmanship, Mr Stringer.
Members will be happy to hear that I do not intend to speak for long on this matter, and I am happy to agree with the Minister about everything she has said. The draft order amends the Licensing Act to allow licensed premises and clubs to sell alcohol for more than two hours, if they so desire, on three evenings around the coronation of King Charles III on 6 May 2023. I will not be alone in looking forward to the coronation of His Majesty, and I will welcome the opportunity to spend a little more time in the pub to raise a glass to the King.
I am reassured that the extension applies only to sales and supply for on-site consumption, as I believe that this will mitigate any hijinks that might cause some unwanted antisocial behaviour or loud drunkenness. I am also reassured that police forces are supportive of the extension for the coronation, as it is they who will have to deal with any alcohol-related crime and disorder, but I hope that the Minister will be alive to anxieties that local authorities and forces may have around the celebrations.
The economic note notes that the main benefit of the draft order is meeting the public expectation to celebrate the King’s coronation, which is “an unquantifiable social benefit”. I know that many of my constituents will agree, and I also know that many of the fantastic licensed premises in my constituency and others will be glad not to have to secure a temporary event notice. I am happy to support the proposals and wish all Members a very enjoyable coronation weekend.
Miss Dines
I thank the hon. Lady for her contribution. The Policing Minister is present, and I am sure he can confirm to us that it is the case that all local police forces are working very hard to make sure that the festivities are carried out in an orderly yet joyous way.
As I set out in opening the debate, the King’s coronation promises to be a joyous occasion in which tradition and celebration will be brought together. Therefore, it is only right that we give the people a chance to mark this historic occasion to greet our new King. As I am sure colleagues will agree, the coronation weekend in May will be a great opportunity for families, friends and communities to raise a glass to His Majesty. We must be hopeful that the coronation will also provide a timely boost for the hospitality industry. God save the King!
Question put and agreed to.