Birmingham Commonwealth Games Bill [HL]

Debate between Lord Shipley and Baroness Crawley

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 25th February 2020 Lords Chamber

[Baroness Crawley (Lab)]

My Lords, as noble Lords have said, Birmingham 2022 will make us all proud. It will be a huge fillip for the city and for investing in it, alongside all the wonderful things that the Games themselves will bring. Briefly, I support my noble friend Lord Hunt of Kings Heath on the idea of a tourism tax. I know that you should never ask a government Minister a question that you do not know the answer to yourself, but I will take a risk. Have the Government done any modelling at all on a tourism tax? Have they had any preliminary conversations with the local authority about it? If the Minister would like to tell us, we promise that we will keep it to ourselves.

[Lord Shipley (LD)]

My Lords, I was not able to speak at Second Reading but I have listened carefully to the debate on this group of amendments. I hope that, when the Minister replies, a number of points that have been raised will be clarified. I support the amendments in this group. In particular Amendments 11 and 3, which broadly cover the same issue of how to raise more income at a local level, should be supported by the Government. The questions that have been asked about a tourist tax, a hotel bedroom tax or a lottery are all about the same thing: how to get more local income raised. My concern is whether the council taxpayers of Birmingham could be faced with a big bill—or else, big cuts in services—if there are difficulties for Birmingham in raising its 25% contribution. I hope the Minister will be able to clarify this; she needs to explain it to the Committee.

I also seek the Minister’s confirmation that the 25% contribution will include all costs that fall to the city council, or other public bodies, outside the formal structure of the governance of the Games—things such as extra street-cleaning, refuse disposal, information services, policing and emergency planning. There is a long list of them; I assume the Government have discussed it with Birmingham and that these matters have been agreed. It is important that the Minister clarifies what is included in the 25% contribution and what lies outside it.

I am sure we all accept that financial and other long-term benefits will accrue to Birmingham, so a local contribution to the cost of the Games is clearly appropriate. However, I have not really understood why 25% is the right figure or what discussion there has been about that. If it is not the right figure, what is the Government’s contingency plan to make up the deficit? As a number of noble Lords have pointed out, in her reply at Second Reading the Minister said that the Government had agreed to underwrite the organisation and delivery of the Games. The critical word is underwrite, but it requires clarification. Does that underwriting include any shortfall on Birmingham’s 25% contribution if the income streams do not deliver the expected sums?