Birmingham Commonwealth Games Bill [HL]

Lord Snape Excerpts

Tuesday 9th July 2019 Lords Chamber

[Lord Cashman (Non-Afl)]

My Lords, I had no intention of speaking in this debate, but I rise having represented the West Midlands for 15 years in the European Parliament. As a non-aligned Member, I would still like to call the noble Lord, Lord Rooker, my noble friend, because this is an eminently sensible idea. The proposal, as outlined and supported by the right reverend Prelate the Bishop of Birmingham, builds on that in asking for a pilot. I urge the Government to think about it. The only thing that I would suggest, coming from a working-class background in the East End, is to make it a bit more attractive by, instead of £1, making it 99p.

As my noble friend Lord Rooker said, this sort of tax works in thriving economies in other parts of the world. Many tourists and many participants in sports and events in our cities do not begrudge the payment because they see where it is going. I urge the Government not to dismiss this out of hand, to embrace the suggestion of a pilot scheme and then to come back to your Lordships’ House.

[Lord Snape (Lab)]

My Lords, I too rise to support this amendment, moved by my noble friend Lord Rooker. However, I do not underestimate the difficulties of a tax like this. My noble friend became a very distinguished Minister, but many years ago, when he and I were aspiring Ministers in Opposition, we both had some responsibility for writing various proposals into an election manifesto. As well as being partly responsible for the transport manifesto, I regularly wrote in this suggestion that there should be a bedroom tax in major cities payable by tourists and business people—in those days, I was radical enough to suggest that congestion charges and workplace parking charges might be a good idea too.

The first time I proposed this, in the run-up to the 1987 election, the then shadow Chancellor—I have forgotten who it was, because, as the Minister said, Ministers, like shadow Ministers, come and go—spoke to me in horrified terms about this proposal for, as he put it, hypothecation. “We can’t have hypothecation”, he said. “It undermines the duties and responsibilities of the Treasury”. Well, I pointed out that undermining the duties and responsibilities of the Treasury might well serve the country in a way that he had not thought of.

Subsequently, in 1992, I made a similar proposal. Obviously, I was regarded as being more important in 1992 because a junior shadow Treasury Minister was dispatched to tell me that on no account could this appear in the manifesto because of the dreaded word “hypothecation”. So I do not underestimate the difficulties. However, as the right reverend Prelate pointed out, there is a considerable funding gap with the Commonwealth Games in 2022—figures of up to £40 million have been mentioned. So if we do not raise the money in this way, it will have to be raised in other ways.

--- Later in debate ---

[Lord Ashton of Hyde]

We are always encouraged to stay at the residence, so that saves hotel tax.

[Lord Snape]

Well, it would be the George V, in that case, for the noble Lord.

Again, for the United Kingdom, this proposal would not be particularly revolutionary. As a result of escaping the dead hand of the Treasury, the Scottish Parliament is now looking at Edinburgh being the first city in the United Kingdom to charge this tax. We wish the Scots well—certainly I do—and I hope that the habit will then spread south of the border.

One of the contributors to this debate talked about the fluctuation in hotel room rates. For the hotel business to pretend that such a tax would deter business people or tourists would be misleading. I looked up the room rates at the Crowne Plaza in Birmingham this week—

[Lord Brookman (Lab)]

Did you pay?

[Lord Snape]

My noble friend asks if I pay. Well, I would not normally stay at the Crowne Plaza unless there was a pretty severe domestic dispute chez Snape—which has not yet happened, but one never knows.

The Crowne Plaza tonight will charge £122.04 for a standard room. I am not sure how the 4p comes about, but it does. On 10 July, in two days, it will charge £209 for a standard room. That is an enormous fluctuation, so I do not see how the hotel would miss a £1 or £2 charge. My noble friend Lord Brookman looks suitably shocked at these hotel prices. He might be relieved to know that, if he is around in Birmingham on Saturday, he can have the same room for £78. Presumably, business people do not visit Birmingham so much on a Saturday night, so only tourists and visitors looking for pleasure will have to pay that sort of price.

I hope that the Minister will listen to this, stand up to the bully boys of the Treasury—they exist whichever Government are in power—and insist that the funding gap to which I have referred is closed so far as the Commonwealth Games in Birmingham are concerned. Given the widespread fluctuation in the cost of hotel rooms, this would be a comparatively painless way to close that gap.

[Lord Addington]

My Lords, before the Minister launches off to fight with his own Treasury bat, I just want to say that amendments such as this are very attractive, especially for a party that looks to local government being slightly more independent and having more power. The question here would be about the limitation of the charge. Have the Government done any research on this, or anything that would tell us what it would cost to get it? What would the benefit be at a given rate? This is a genuine argument and there are examples of doing this in the UK. If it can be done and set at a rate that makes a real benefit but does not affect the actual uptake of rooms, there is a very good argument for it.