I am tabling this statement for the benefit of all Members of this House to give notice of a Contingencies Fund advance for the live events reinsurance scheme.
A requirement for a Contingencies Fund advance has arisen due to the need for the Government to partner with the insurance industry to deliver a live events reinsurance scheme.
The scheme will support live events across the country—such as live music shows, music festivals, sporting and business events—that are at risk of being halted or delayed due to an inability to obtain this insurance. Her Majesty’s Government are partnering with insurers to offer a cost indemnification insurance scheme which will make cover available against the cancellation, postponement, relocation or abandonment of events due to new UK civil authority restrictions in response to covid-19. Cover will be available to purchase alongside standard commercial events insurance for an additional premium. The duration of the cover will be from September 2021 to 30 September 2022, with a review in the first half of 2022.
Parliamentary approval for additional resources of £14,000,000 for this new expenditure will be sought in a supplementary estimate for the Department for Digital, Culture, Media and Sport. Pending that approval, urgent expenditure estimated at £14,000,000 will be met by repayable cash advances from the Contingencies Fund.
This scheme will support the UK’s economic recovery from the covid-19 crisis by giving events the confidence they need to plan for the future, whilst also ensuring that we deliver value for money for taxpayers.