Oral Answers to Questions
Lucy Frazer Excerpts(6 months, 2 weeks ago)
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Paul Howell (Sedgefield) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
As this Parliament comes to an end, I too would like to begin by thanking you, Mr Speaker, for everything you have done and for the support you have given me as a Minister over the past six years. I would like to thank DCMS and my officials for all the work they have done, the special advisers, who have been superb, and my hard-working and effective ministerial team—we work as a team—and I am thankful for my engagement with the shadow Secretary of State.
It is really important that we support our young people. That is why we have a programme to build or refurbish up to 300 youth facilities, supporting 45,000 young people each year. To date, £250 million has been awarded to 227 organisations to build, renovate and expand youth provision.
Paul Howell
Like others, I would like to thank everyone who has helped me over my first Parliament—I hope to come back for another one with a different constituency name. On the substantive question, on Saturday 11 May I went to the Middleton St George scout hall to join the local lord lieutenant and deputy mayor as we opened their new scout hall, with more than £350,000 from the Conservative Government’s youth investment fund. Could the Secretary of State just remind us how important these community groups are—the scouts, the brass bands, and all of the different things that we see around our communities—and maybe just remind us of the breadth and scope of support that this Conservative Government have given to such organisations?
Lucy Frazer
I thank my hon. Friend, who is a huge campaigner for his area. We have given 300,000 opportunities to young people through our national youth guarantee. That is not just about the youth clubs that I have mentioned; we have also given 12,000 disadvantaged young people an opportunity to have adventures away from home; we have made 30,000 places for the Duke of Edinburgh award scheme; and we have created 250 new uniformed youth groups.
Alex Davies-Jones (Pontypridd) (Lab)
It was Labour Government funding that enabled me, a working-class girl from Pontypridd, to access specialist music lessons, to fall in love with opera and to take part in a specialist workshop with Welsh National Opera. We all know what is sadly happening with the WNO, so what steps is the Secretary of State taking to safeguard our world-class WNO and the jobs and opportunities it provides for young people and everyone across Wales and the south-west?
Lucy Frazer
I am really delighted to have an opportunity to answer this question about funding in Wales, because, notwithstanding the fact that arts is devolved to Wales, this Government have given £4 million through the Arts Council to Welsh National Opera—the same amount that the Welsh Government have given. Furthermore, the Arts Council has given transition funding. In fact, Welsh National Opera has been in the top 10% of organisations that have been funded. My position is that the Labour Government in Wales have reduced their funding to the Arts Council of Wales by 10%, and have been called out by those in Wales, so I am very grateful to the hon. Member for giving me the opportunity to point that out.
Thangam Debbonaire (Bristol West) (Lab)
Can the Secretary of State, or anyone else on the Tory Benches, honestly tell the young people in Bristol and across the UK that they are better off, after 14 years of Conservative failures on youth services, failures on education and failures on skills development, than they would be under a Government led by Keir Starmer and a changed Labour party?
Lucy Frazer
Absolutely. This Government have supported young people through education in outstanding schools—80% of young people get an outstanding education. We are up in the PISA—programme for international student assessment—tables for education. As I said, 300,000 young people have been given opportunities in the creative industries, which the hon. Member fails to mention. Employment is up in the creative industries, and we have doubled the number of people employed and doubled the revenues. Labour voted against our creative industries tax relief every single time.
Wendy Morton (Aldridge-Brownhills) (Con)
Greg Smith (Buckingham) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
We have a number of individual initiatives to support the participation of women and girls in sport. The national physical activity taskforce is working across Government to ensure that women and girls get more active. We have established the Board of Women’s Sport to identify challenges and opportunities across women’s sport, and we are fully supporting Karen Carney’s recommendations to lift standards and deliver sustainable growth for women’s football.
Wendy Morton
As you know, Mr Speaker, football is a great sport in which both boys and girls can participate. Walsall Football Club Foundation does fantastic work to encourage and enthuse schools in my constituency to participate through initiatives such as Let Girls Play. Does my right hon. and learned Friend agree that this is exactly what we need to do to encourage more grassroots sport for girls? Will she also join me in congratulating the boys team at Cooper and Jordan School on recently winning the Utilita kids cup final at Wembley?
Lucy Frazer
I am delighted to congratulate the boys team, and to commend all the work done in local schools to encourage girls to get more involved in sport. That is why the Government are committed to equal access to physical education and sport in schools, so that girls are able to participate in whatever sport they like. If they want to play cricket, football or rugby, they should be entitled to do so. And it is why the Department for Education has published guidance on how to deliver a minimum of two hours a week of quality PE, alongside over £600 million of funding for primary PE and sport through the sport premium.
Greg Smith
There is no greater exemplar of encouraging women and girls into sport than the motorsport sector. From Susie Wolff’s F1 academy and Discover Your Drive to Motorsport UK’s Girls on Track scheme, the sector is discovering British talent like Abbi Pulling, who won both races in Miami in the F1 academy and then, the very next weekend, won the British F4 race here in the UK. And that is before I get on to the engineering and design roles. Does my right hon. and learned Friend agree that motorsport shows the way for other sports to follow?
Lucy Frazer
I absolutely agree with my hon. Friend on the huge value of motorsport. I congratulate motorsport on its Girls on Track scheme, which is getting more girls and women into sport. I highlight and re-emphasise his point that motorsport is not just about the sport itself; it is a huge powerhouse for research and development that builds and supports innovation.
Tonia Antoniazzi (Gower) (Lab)
I draw attention to my recent appointment to the board of Llanelli Scarlets.
I pay tribute to both Front Bench teams for the cross- party work in this House, because women’s and girls’ sport is really important. Will the Secretary of State join me in celebrating the activity of girls and women in sport? Whoever is in government next, we will continue to work across parties to ensure that the rights of all women and girls are upheld in sport.
Lucy Frazer
I could not agree more. We do quite a lot of important cross-party work in this House. One of the things I have been most proud to be involved with in this role is supporting the women’s football team and women in sport. It was phenomenal to go to Australia to see the women’s team almost win the World cup, and it has been phenomenal to see the work that the Lionesses and former Lionesses have done to spotlight that. We are at a very exciting point for women’s football, and the Government are continuing to support it in so many different ways.
Thangam Debbonaire (Bristol West) (Lab)
The Secretary of State talks a good talk, but on her watch the gender activity gap is wider than ever: 22% fewer girls than boys take part in team sport. Does she agree that it is only under Labour, the party of equality, that women and girls in Bristol and beyond will finally have equal access to sport?
Lucy Frazer
I absolutely disagree with that statement, of course, because for a number of years now the Conservative Government have been supporting women and girls to get into sport, with a significant campaign to get more women and girls into sport, and the cross-departmental work with the Department for Education to ensure that young girls have equal access to sport in school. In fact, year on year, we have seen those numbers on participation in sport improve, and we also set up the national physical activity taskforce with the specific aim of getting 1 million more women involved in activity.
Holly Lynch (Halifax) (Lab)
Rachel Maclean (Redditch) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
I reiterate my thanks to the Minister for Media, Tourism and Creative Industries, my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez), the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew) and Lord Parkinson for the significant support they have given me throughout my time as Secretary of State. DCMS is a team and without their phenomenal work we would not have been able to achieve what we have over the past 18 months or so, so I just wanted to say thank you to them.
Over the past 14 years, the Conservative party in government has helped transform the creative industries. There have been 1 million new jobs since 2010 and the economic value of the creative industries has doubled, to over £124 billion in 2022, powered by investment and tax breaks that Opposition Members voted against every single time. Unlike the Labour party, we have set out a plan to go further, to grow the creative industries by an additional £50 billion and add another million extra jobs by 2030. That is the choice voters will face in July: a clear Conservative plan for growth or back to square one with Labour.
Rachel Maclean
I thank the Secretary of State for all her work with my team in Redditch. Can she confirm that, despite the tight timelines, we can ensure that the £5 million in funding, which is hugely valued, is able to be made use of by as many local groups as possible before we break for the general election?
Lucy Frazer
My hon. Friend is a huge campaigner. She was awarded £5 million at the spring Budget to support the development of cultural projects in her area. She will know that it is a matter for each council to identify the most suitable project to be funded in their area. I am sure she will work very closely with them to ensure that funding will be distributed appropriately.
Sir Chris Bryant (Rhondda) (Lab)
I hope that it is in order for me to thank all the ministerial team for when they have been absolutely courteous to us and when we have been able to work together on matters. I particularly pay tribute to the Under-Secretary of State, the right hon. Member for Pudsey (Stuart Andrew), who is not only a gent, but a champ.
However, we have two music venues closing every week; British artists prevented from touring in Europe; the UK art market falling from second to third in the world; A-level music students down by 45%; museums and galleries struggling with the cost of living; ballerinas told to retrain; theatre and opera touring slashed; and an apprenticeship levy that does not work for the creative industries. Was that all part of the plan? Or, in the words of RuPaul, is it not time for this appalling Government to sashay away?
Lucy Frazer
There are tax reliefs for every subsector of the creative industries. Whether it is film, studios, independent film or grassroots support, we have supported the creative industries at every level. We have a plan from the first day of primary school to the last day of work. That is what we are doing for our sectors.
Kevin Foster (Torbay) (Con)
Kirsty Blackman (Aberdeen North) (SNP)
Can I thank our shadow Culture Secretary? I am proud of the work that he has done and that I have been able to do alongside him on behalf of the SNP and the people of Scotland.
Mr Speaker, can I also echo your comments about Liam Laurence Smyth? The number of times I have gone to Liam and said, “I want to get up to some mischief, can you help me?” I have really appreciated all the advice that he has given me.
I would like to ask the Secretary of State whether the Media Bill will be part of wash-up, because a number of organisations, including STV, have contacted me this morning asking for it to be.
Lucy Frazer
That is certainly what I am pressing for and I am very grateful to the hon. Member for her support to ensure that that happens.
Steve Tuckwell (Uxbridge and South Ruislip) (Con)
Lucy Frazer
We are all looking forward to the Olympics and good luck to Team GB. UK Sport invested £382 million of Exchequer and lottery funding for the Paris Olympics. We also want to ensure, with the change maker programme initiative, that, when our athletes come back from the Paris games, they give back to communities such as those of my hon. Friend.
Helen Hayes (Dulwich and West Norwood) (Lab)
Lucy Frazer
In addition to the £500 million in the national youth guarantee, which is supporting young people across the country, we are approaching youth in a cross-departmental way, whether through the £200 million from the Home Office to support young people not to go into a life of crime, the similar amount of funding from the Ministry of Justice to ensure that that funding comes through, or the £64 billion that we give to local councils. We are supporting young people at every stage of their life.
Mr Philip Hollobone (Kettering) (Con)
Will the Minister for sport join me in congratulating Kettering resident Kyren Wilson on becoming the new world snooker champion, and in hoping that Kyren’s success will encourage people in Kettering and across the country to take up snooker?
Deidre Brock (Edinburgh North and Leith) (SNP)
What steps will the Government take to ensure robust regulation of the special impartiality rules that apply during the election period? This is in reference to my substantive question about the enforcement of the broadcasting code, to ensure that multi-party democracy is respected, devolution is not treated as a sideshow, and the people of Scotland get an accurate picture of public policy that applies to them, so that they are not disinformed and disenfranchised.
Lucy Frazer
The hon. Member will know that all broadcasters are regulated by Ofcom. I am sure that they will all be aware of the importance of impartiality.
Ruth Edwards (Rushcliffe) (Con)
Cotgrave football club does a fantastic job of providing access to football for the local community, but it is limited by its current facilities and needs funding from Sport England for a 4G all-weather pitch. To secure that funding, it must qualify as a level 3 club, with facilities for disabled football and a plan to grow women’s football. It would love to do that, but it cannot do it without a 4G pitch. Can the Secretary of State help us to resolve this chicken- and-egg situation, so that Cotgrave football club can secure the funding that it needs and provide access to football for even more people?
Lucy Frazer
My hon. Friend has raised that with me in the past, and I have spoken to my officials. I encourage her to continue to liaise with the Football Foundation to understand what might be possible, so I suggest she passes that on. She is a really successful and staunch campaigner for her local area. I have worked with her on a number of campaigns, and I have every faith in her success in this particular campaign.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I, too, thank Liam Laurence Smyth, who was the first Clerk who worked for me when I was Chair of the Education Committee. He became a great friend and mentor, and this House will miss him dreadfully.
Is there any special money for communities that have a rich tradition of music and the arts? Huddersfield, my constituency, has the Huddersfield Choral, brass bands, so many centres of excellence, and an international festival of music. Could we have special money for towns such as mine, which would give a boost to the whole country for the arts?
Lucy Frazer
We have special money for areas across the country, because every year the Arts Council has £444 million to spend. It spends a significant amount of that money in music.
Mr Speaker
The hon. Gentleman did not mention the rugby league result on Sunday.
Gambling White Paper: One Year On
Lucy Frazer Excerpts(7 months, 1 week ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
We are now one year on from the publication of the landmark gambling White Paper and the Government continue to take important steps in implementing their key policies and recommendations.
That White Paper recognised the significant contribution that racing makes to not just British sporting culture, but our wider economy. It is second only to football in attendance figures and constitutes a major part of various different rural economies across the country. According to a study, submitted by the British Horseracing Authority, the racing industry has direct revenues in excess of £1.47 billion and makes a total annual contribution to the UK economy, including induced effects, of £4.1 billion.
As the regulator for the sector, the Gambling Commission has a pivotal role to play in the implementation of reforms. Today the Gambling Commission published its decisions on four key measures from the White Paper: stronger age verification in premises, improving customer choice on direct marketing, safer remote game design, and financial risk checks. I am pleased to say that its plans for these measures remain entirely consistent with the objectives of our White Paper.
In its consultation response, the Gambling Commission set out its plans to implement a proportionate new system of frictionless financial risk checks. This system contains two different financial risk checks. The first are frictionless, light-touch vulnerability checks that will use publicly available data and do not require any information from punters.
The second are enhanced frictionless risk assessments. As set out in the Gambling Commission’s recent blog post on this issue, the consultation response makes clear that these enhanced risk assessments will only be introduced after a pilot period and at the point when we are certain they will be frictionless, meaning customers will no longer have to provide documents. The pilot will be used to test the best data to use and how operators and credit reference agencies will share this data. Credit reference agencies collect a range of data that could be used in an assessment, such as information on missed or late credit payments or how much credit is available. Gambling operators will never have access to raw account-level data so, for example, they would not be able to look at customers’ bank accounts and nor will the Government or Gambling Commission. The pilot will also assess the impact these risk assessments will have on the industry as well as consumers.
While this pilot is under way, an interim code will deliver progress on resolving the issue of existing ad hoc and onerous document checks. The Betting and Gaming Council has announced today its new industry code on consumer checks. For operators who adopt this interim solution, these measures will bring much-needed consistency across the regulated sector until the frictionless financial risk assessments can be developed, tested and fully implemented.
The interim code and the new system of frictionless checks are a major step towards transforming the current system of ad hoc and onerous document checks that are negatively impacting customers, the betting industry and horseracing. Even when this new system of frictionless checks is in place, we recognise that these measures are likely to have an impact on betting yield. The Government are working with racing, and refining estimates of this impact, and, as committed to in the gambling White Paper, we started a review of the horserace betting levy in May 2023 to ensure a suitable return to the sport for the future. This review has been taking into account the impact of the wider reforms in the White Paper on horseracing to ensure the proposed levy delivers an appropriate level of funding for the sector. We recognise the importance of the levy to the horseracing industry, and we have strongly encouraged racing and betting stakeholders to work together to come to a consensus in the best interests of the sport. We recognise that a huge amount of hard work has been undertaken over the course of the last year, but we are disappointed that this has not resulted in an agreement to date. I and the Minister for Sport are undertaking an intense period of engagement with all parties to resolve this issue, and we continue to encourage all parties to engage and come to an agreement voluntarily. As we have always said, if no agreement is reached we will consider legislative options. We will update the House on the progress on these talks on or before 22 May 2024.
[HCWS438]
Telegraph Media Group Ltd: Acquisition
Lucy Frazer Excerpts(7 months, 1 week ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
With permission, Mr Speaker, I will update the House on the proposed acquisition of the Telegraph Media Group by RB Investco Ltd. I will refer to the Telegraph Media Group as the Telegraph and to RB Investco Ltd as the purchaser.
As the House will know, the sale of the Telegraph is currently subject to the media mergers process. Today, I would like to confirm that the purchaser has notified me of its intention to sell the call option agreement that gives it the ability to buy the Telegraph, in effect withdrawing from the purchase of the newspaper. This step follows the intervention I made on the merger situation on 26 January 2024, both to issue a public interest intervention notice, or PIIN, and to issue a pre-emptive action order. It also follows on from my announcement of 19 March on my assessment, following the reports of the Competition and Markets Authority and Ofcom, that I was minded to refer the merger to a further, more detailed phase 2 investigation. I have taken these decisions on the basis of the evidence in the case, and I will continue to do so.
I am now updating the House on the procedures and protections for the public interest that are in place in respect of the Telegraph, given the sale process that I understand will begin shortly. I have informed the parties that it would not be appropriate at this stage for me to take a decision on whether or not to make a phase 2 reference. In my view, the relevant merger situation remains in contemplation. I therefore continue to have powers, under the order, to prevent actions by the parties to the merger that might prejudice any phase 2 reference to the CMA or make it more difficult for me to take action as a result of my final decision following such a reference. The order prohibits the parties from making significant organisational and staff changes, including to the editorial team, without my consent. These restrictions remain in place. However, I have now agreed to derogations from the order that will give the parties the flexibility and regulatory space to make all reasonable preparations for the sale of the call option agreement.
It is important to be clear that I will not be engaging with prospective buyers, nor selecting the preferred bidder. The sale process will be run by RedBird IMI alone. My decision on any further derogation from the order that RedBird IMI will need to receive to complete the sale of the call option agreement will be made according to my powers and obligations under the Enterprise Act 2002, and it will be based on the public interest, rather than a qualitative decision on who should buy the titles. Any transfer to new ownership will also potentially be subject to the media mergers regime, as set out in the Act.
It is appropriate for me to say a few words about the underlying matters. I initiated this process under the powers I have under the Enterprise Act to protect the accurate presentation of news and the free expression of opinion in newspapers. These powers are vital. The freedom of the press to express opinions, to criticise and to hold power to account are all a fundamental part of our democracy. It is often said that the freedom of the press protects not the press’s freedom but ours.
It would not be appropriate for a foreign state to interfere with the accurate presentation of our news or the freedom of expression in newspapers. Although these powers under the existing media merger regime are broad, the Government have taken action to rule out newspaper and news magazine mergers involving any influence, ownership or control by foreign states. We have done that by amending the Digital Markets, Competition and Consumers Bill, which will shortly return to this House.
As a nation, we are a proud, open democracy and a strong trading power with a vibrant economy. Although we are rightly limiting powers to interfere with our democracy, as many other states do, in terms of foreign investment more generally we remain open for business.
I end by recognising the strength of feeling in this House and the other place, and by recognising the work done by the Minister of State, my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez), by the Parliamentary Under-Secretary of State, Lord Parkinson of Whitley Bay, and in particular by the right hon. Baroness Stowell of Beeston.
I commend this statement to the House.
Lucy Frazer
I am grateful to the hon. Lady for welcoming this statement on the position in which we now find ourselves. I reiterate her point that the UAE is an important trading partner. The legislation relates to all foreign states. We welcome our relationship with the UAE.
The hon. Lady says that this is an important point, and I have been very conscious of this matter since it first fell on my desk. From the outset, I have raised and dealt with the concerns in this case. Although she raises it now, and I am not looking at the complete record, I do not recall any occasion on which she has raised this matter either directly with me or in this House.
Freedom of the press is an important principle that we are upholding. As I said in my statement, I was already taking steps under the broad powers in the Enterprise Act in a quasi-judicial fashion, which limits the other measures that one can take.
On the timescale, I understand that certainty is needed for the publication and for those who work for it. I expect and hope that this process will be concluded in short order, understanding, of course, that it is important for the sale process to take place. This is a regulatory process, and I will update Members and the House at appropriate stages.
Dame Caroline Dinenage (Gosport) (Con)
I welcome the Secretary of State’s statement and the decision of RedBird IMI, in effect, to withdraw from purchasing the Telegraph. Freedom and plurality are, of course, cornerstones of our media, and political interventions should always be the last resort, but I agree with her that it is absolutely unacceptable for foreign states to have the potential to interfere with the independence and freedom of our press. What is RedBird’s role during the period it takes for a prospective buyer to be found? Will it be able to hold a non-controlling stake in the Telegraph at the end of this process?
Lucy Frazer
The position on the governance of the Telegraph during this period is the same as it has been since I started this regulatory process. I have been concerned at all times to ensure that the independence of the directors, the managers and the editorial team remains. That is why I brought forward a pre-emptive order, which would restrict any changes in that regard. A sales process will now take place, and it will have to follow any regulations that are in force and that will govern it.
Kirsty Blackman (Aberdeen North) (SNP)
I thank the Secretary of State for advance sight of her statement. My Front-Bench colleague, my hon. Friend the Member for Perth and North Perthshire (Pete Wishart), and the SNP more widely are pleased about the decision and today’s announcement. It feels as though the protection of the independence and legitimacy of the media is something people feel strongly about across the House, no matter which party they represent. I am pleased that everybody is speaking with one voice on the blocking of foreign interference in our media outlets.
I wonder about the way in which this process has happened. Is she going to have a look at how it worked and whether or not RB Investco and the UAE were able to exploit loopholes to ensure that the process took longer than it could have taken in order for this decision to be made? Will she look at whether there are ways of tightening up the Enterprise Act and the legislation to ensure that those decisions can be made more quickly and loopholes cannot be exploited?
Legacy media outlets are struggling in a lot of ways, and many of them may be looking at alternative ways of funding what they are doing. Will she make it clear that, like us, she feels that that freedom of the press from foreign interference is incredibly important, no matter what the financial situation of the companies in question?
Lucy Frazer
The hon. Lady talks about tightening up the process. We significantly tightened it in the amendment that the Government tabled in the Lords and is coming back to this House today. That will indeed make sure that there can be no ownership, control or influence by a foreign state, because, as she makes clear, that is an important part of our democracy.
Sir John Whittingdale (Maldon) (Con)
My right hon. and learned Friend will be aware that at the end of this week we have World Press Freedom Day, so her statement is particularly welcome. I congratulate her on the scrupulous way in which she has undertaken her responsibilities. She will be aware that the Enterprise Act was written before the internet existed and that it is six years since Ofcom said that there needs to be fundamental review of our media merger regime. Will she therefore say what progress has been made on bringing the entire regime up to date to take account of the massive growth of online news distribution?
Lucy Frazer
I am very grateful for all the support my right hon. Friend gave me when he was in the Department and for the expertise he brought with him on the wider media and so many other matters. He makes an important point: the media landscape is changing. That is why we are looking at whether online news should be included in the scope of Ofcom’s powers.
Sarah Owen (Luton North) (Lab)
A number of staff at the Telegraph Media Group will be worried about their jobs, so what conversations has the Secretary of State had with trade union representatives of staff at TMG? I have just met the amazing bright, talented students at Luton Sixth Form College who are visiting today, some of whom may want a future in journalism, so will she say what impact this statement may have on media jobs and our ability to ensure a competitive media landscape in the future?
Lucy Frazer
One measure I took when issuing the public interest intervention notice and the pre-emptive order that followed it was to ensure that, whatever decision I took ultimately on this case, TMG was not prejudiced by the potential purchase. The pre-emptive order has always said that there should be no changes to the management or the editorial team of the Telegraph without my consent, to ensure that any changes in the interim would not be prejudiced by any ultimate sale, so I can give the hon. Lady the reassurance that measures are already in place to protect the staff at TMG in terms of this purchase. By the order today, I have highlighted that that pre-emptive order in relation to those staff continues.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I thank my right hon. and learned Friend for coming forward with this statement and for making the right decision. Does this whole process not demonstrate what my right hon. Friend the Member for Maldon (Sir John Whittingdale) said earlier, which was that we are dealing with a digital world with analogue tools and it takes far too long? It also led to the peculiar situation whereby both she and the Minister for Media, Tourism and Creative Industries, my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) have had to come to the Dispatch Box despite being unable to say anything in answer to any questions, which was slightly unfair on them. I know that an amendment is coming through on another Bill, but we really need to speed this process up by saying simply that no foreign state could own any of our media. We now need to look at the online elements of that as well if we can.
Lucy Frazer
Let me offer my right hon. Friend reassurance, because that legislation is coming to the House today. I know that a lot of Members of this House and of the other place raised those concerns, and it is right that we brought forward an amendment to put absolutely beyond doubt that fact that it would be inappropriate for a foreign state to own our news media. That is why we built on Baroness Stowell’s amendment to put that beyond doubt and to put it in a form that works well. I am grateful to Baroness Stowell for the work she is putting into her amendment. I recognise the other point my right hon. Friend made about online media and it is absolutely something we are looking at.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Thanks are due to the Secretary of State for this decision. The Spectator will be free from foreign influence and can carry on describing me as, “A languid old gent who represents a craggy constituency somewhere near Norway.” As she says, that is freedom of speech and one must put up with what one must put up with—good luck to these eminent publications. Does she realise, however, that also fundamental to democracy and freedom of speech is the continued survival of our myriad local newspapers the length and breadth of this sceptred isle? They are in difficulty and if they go down, we will be the poorer for it. I do not expect an answer now, but may I at least ask her to look at this issue as one that is important?
Lucy Frazer
I absolutely understand that and I have done a number of roundtables where I have talked to the local media sector. The hon. Gentleman will be aware that in the past we have had a local news fund. He will also be aware of the measures we have on business rates for local news media. I am very conscious of the need to support our local media, which play a vital role in ensuring that we have local democracy. He will also know that one measure we put in at the mid-term review was to ensure that where the BBC took steps in spaces where there was already a competitive media market, it should engage more widely with those it was affecting.
Sir John Redwood (Wokingham) (Con)
I strongly welcome the Secretary of State’s clear statement of policy that foreign states should not be allowed to take over press and media in this country, which is a welcome development. I hope that in the proposals for amending the law it will be clear that the policy relates not only to Governments but to nationalised industries, public authorities or companies in which states have significant influence because of their shareholdings. If that is not set out, such bodies may try to find ways around the law. I am sure my right hon. and learned Friend is up to that, but can we please have an amendment that absolutely nails press freedom in the way we want it to exist—free of influence from foreign states?
Lucy Frazer
I understand my right hon. Friend’s points. When we bring forward legislation, it is important that it does not have loopholes. As a Department, we thought very carefully about how we can protect against that. When the Bill comes back to this House this afternoon, he will see that we have defined foreign state ownership very broadly. We have extended the definition to include not only ownership but control and influence.
Kevin Brennan (Cardiff West) (Lab)
Further to the excellent point made by my hon. Friend the Member for Luton North (Sarah Owen), may I press the Secretary of State? In her statement, she said that the order prohibits parties from making significant organisational and staff changes without her consent, and that the restrictions remain in place. Will she agree not to consent to any deal that involves significant job losses?
Lucy Frazer
Obviously, it would be entirely inappropriate to say what decision I might take when exercising a quasi-judicial function without looking at the evidence, which is exactly what I would do.
Alexander Stafford (Rother Valley) (Con)
I welcome the statement, not because of the UAE—after all, the UAE is a great diplomatic and trading partner of the UK—but because it gets rid of foreign involvement in our media. Will the Secretary of State say more about how online and television media will be affected by the order, because those are the growing media outlets? We have talked about freedom of the press, but will she advise us of how we can get rid of disinformation? In the UK, we have outlets such as Press TV and China Daily, which are propaganda arms of quite nefarious regimes, operating and working here. What are the Government doing to stop those nefarious activities poisoning the minds of our young people?
Lucy Frazer
There is so much that one could respond to in my hon. Friend’s question. I remind him that we are looking at the online news space, which is vital. It is important to emphasise that Ofcom already has significant powers in the broadcast space. It has already taken actions in relation to foreign involvement in our broadcast media and banned certain entities from operating. We always need to look at how we tackle misinformation, and we are doing so across Government as a whole.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for her positivity in her responses. Will she highlight what steps can be taken to ensure that the scrambling that took place to protect freedom of British speech and media from international corporations is not replicated? Will she consider providing legislative protection to that effect, which is vital as outside influencers seek to sway public perception for their own ends? That has to be recognised and protected against.
Lucy Frazer
It is important that we always have freedom of the press and that external forces do not interfere with that freedom. I will be making a speech to the Society of Editors this afternoon that the hon. Gentleman might wish to read, after I have delivered it. I am happy to consider the points he has made.
Rehman Chishti (Gillingham and Rainham) (Con)
I welcome the statement and the decision by the Secretary of State. It is in our national interest to protect our free media. My question is about transparency and understanding the logic behind the decision. The Secretary of State said that she has taken into account the evidence. What key evidence did she take into account? What were the pertinent aspects of the evidence that led her to make that decision? Knowing that would give people outside the opportunity to look at the reasoning and rationale behind the decision.
Lucy Frazer
The first decision I took was that the threshold had been passed. I was concerned about interference with the accurate presentation of news and the freedom of the press. The evidence I saw enabled me to say that the threshold had been passed, and to ask Ofcom and the Competition and Markets Authority to look at the matter more broadly. They did that and they took some time to give me a very detailed report, which I further considered. In my letter sent in March, I set out the evidence from that report and my decision that I was minded to send the matter to phase 2 investigation. The letter in which I set out the evidence on which I relied has been published, I believe.
Christine Jardine (Edinburgh West) (LD)
As a former journalist and a former member of the Society of Editors in Scotland, I welcome the Secretary of State’s statement because press freedom is vital in a democracy, as she says. The insidious influence of foreign states has to be protected against, not just in newspapers but, as we have heard, online and in television and radio. Does she agree that the matter is not settled with this step? We have to be continually aware of the danger of foreign interference and the insidious growth of that influence in our media by all means. Will the Government take that on board and continue to monitor the situation on a regular basis?
Lucy Frazer
Of course, the Government always keep matters under review. I can reassure the hon. Member that we have a robust system to deal with interference with press freedom. We had that in the Enterprise Act; my powers as Secretary of State under that Act in relation to interference with the accurate presentation of news and the freedom of the press were clear and robust. I took various decisions at each stage to ensure those matters were fully investigated. The hon. Member can also take reassurance from the fact that the legislation that will be coming back to the House this afternoon will put beyond that doubt, and set out that a foreign state cannot interfere with our newspapers. Every hon. Member who has expressed a view across the Chamber is of the view, which I share, that a foreign state should not be able to control, influence or own a British newspaper.
Richard Foord (Tiverton and Honiton) (LD)
I welcome this intervention that means that the UAE cannot own Telegraph Media Group through RedBird IMI, but there is a suggestion that foreign Governments could potentially interfere with free speech at universities that host institutes partly funded by them. The Government-appointed director for freedom of speech and academic freedom has warned that foreign interference at universities is going on in the UK. What lessons, if any, will be instructive for the Government’s so-called university free speech tsar?
Lucy Frazer
I am wholly in favour of free speech and ensuring that people are not shut down for their views. The hon. Member needs to take up his points with those responsible for universities.
Football Governance Bill
Lucy Frazer ExcerptsTuesday 23rd April 2024
(7 months, 2 weeks ago)
Commons ChamberRead Full debate Football Governance Bill 2023-24 View all Football Governance Bill 2023-24 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
I beg to move, That the Bill be read a Second time.
Football is part of our national life. Over the years, English football has become a universal language. Wherever you are, whatever country you are in, you are never far away from a fan of one of our great clubs. We are a global football powerhouse and our economy benefits: billions for the economy, investment in towns and cities across the country, and tens of thousands of jobs. Our premier league is world leading. And the strength of our national game goes far beyond the top tier. Hundreds of thousands of fans turn out every week and come together to support teams up and down the football pyramid. Football clubs are at the heart of our communities. Each and every Member will be able to testify to that. Each Member will also be able to testify to the fact that we have the best fans in the world.
Unfortunately, too many of those very same fans have been taken for granted. Too many fans have seen their team’s owners change club badges and colours without any fan input, or have seen their club sell its stadium and up sticks. Too many fans have watched on as their clubs tried to join closed-shop breakaway leagues against their wishes. And too many fans have seen their club struggle and even collapse under the weight of mismanagement and poor ownership. There have been 64 instances of clubs falling into administration since the Premier League was founded in 1992. Clearly, not all clubs are feeling the benefits of English football’s global success and something has to change.
We all want to see our national game prosper for generations to come, but if we want our clubs to thrive, fans have to be at their heart. If we want English football to remain a global success story, we have to ensure our pyramid is financially sustainable. I am proud to say that the Football Governance Bill will do exactly that.
Sir Jeremy Wright (Kenilworth and Southam) (Con)
I congratulate my right hon. and learned Friend on bringing forward this Bill. As she says, football goes all the way down the football pyramid—not just in terms of its quality, but in terms of the entertainment it offers. Does she agree that a classic example of that is the fantastic entertainment that Coventry City provided in the FA cup semi-final on Sunday? Despite the club temporarily not being part of the premier league, it is none the less clear not just to the Coventry City supporters in my constituency but to everyone that the financial health of clubs that are further down the football pyramid matters for the entertainment they can provide. Does she agree?
Lucy Frazer
My right hon. and learned Friend is absolutely right: that was a tremendous match. It shows the importance of the football pyramid, and how it delights and disappoints fans across the country to see clubs go up and down.
Mr Toby Perkins (Chesterfield) (Lab)
I thank the Government for bringing forward this overdue Bill. Chesterfield has seen the worst of football, with the former owner Darren Brown ending up in jail for his crimes against the club, which almost took it out of existence. Under the ownership of the Chesterfield FC Trust, Chesterfield are now back where they belong—in the football league—after becoming champions of the national league this year. Is it not the case that what our football clubs really need is to be run by people with a commitment to those clubs and a passion for them, rather than by people who are trying to make a quick bob?
Lucy Frazer
To address the point about the Bill being long overdue, the Labour party said for some time that it would do something about this issue but did absolutely nothing. Since I have been Secretary of State, we have had a White Paper and a response to it, and we have drafted a Bill at speed. We have introduced the Bill, and I am delighted that it is having its Second Reading today. I recognise that the Labour party supports the Bill, and I am very grateful for its collaboration. I am very pleased that Chesterfield are in a good place. We want to see ownership that works across the field.
Steve Brine (Winchester) (Con)
I am very proud that our Government are bringing forward this Bill. Others had opportunities to do so but did not, and it is very important. I shall support its Second Reading tonight, because it is important to protect the football pyramid. The Bill talks about guaranteeing that fans will be consulted on key decisions that impact on them, which it will do in one respect, but fans of teams lower down the pyramid will be affected by the decision last week to get rid of FA cup replays, which are a lifeline for many clubs by providing opportunities to get a big draw at Anfield, Old Trafford or even Tottenham Hotspur Stadium. Obviously this Bill will not touch on that, but does the Secretary of State have any comments on this issue?
Lucy Frazer
My hon. Friend is absolutely right, because those David and Goliath fixtures are part of the magic of football. I know that replays have been a welcome source of income for smaller clubs throughout the years. I spoke to the FA about this issue at Wembley on Saturday, but as he will know, these are decisions for the football authorities. This Bill will ensure that we have appropriate financial regulation in place.
Valerie Vaz (Walsall South) (Lab)
I am not going to mention my local football clubs—oh, all right, I will: Walsall football club and Darlaston Town 1874 FC, which is celebrating its 150th anniversary. The shape of the Bill at the minute is due to the Minister sitting next to the Secretary of State, the right hon. Member for Pudsey (Stuart Andrew), who has engaged with all Members. I pay tribute to him for including all of us. It is a pity that the Secretary of State is looking at the Bill in a party political way, because the Government have been in power for the last 14 years. Let us all pay tribute to the right hon. Member for Pudsey, who has done a fantastic job.
Lucy Frazer
In the next part of my speech, I am going to pay tribute to a large number of Members who have played a considerable part. My right hon. Friend the Member for Pudsey (Stuart Andrew) has done a tremendous amount, as have many Members from across the House, but I pay particular tribute to my hon. Friend the Member for Chatham and Aylesford (Dame Tracey Crouch), without whom we would not be in this position today.
I was responding to a point about the delay. Those on the Opposition Benches might criticise us for the delay, but the truth of the matter is that they cannot legitimately do so, because they had an opportunity to take action and failed to take it. That is why we have taken the action that we have.
I agree with the right hon. Member for Walsall South (Valerie Vaz) that we should recognise that many people have played a considerable part in bringing this Bill to fruition, because many people have championed these reforms. I would like to mention again my hon. Friend the Member for Chatham and Aylesford, who was recently awarded a damehood. Her voice and her work have been instrumental in getting us to where we are today. As well as being chair of the fan-led review, she has helped lay the foundation. She has worked very closely with me, and in particular with my right hon. Friend the Member for Pudsey, to make sure that this Bill is in the shape that it is as it comes before the House today.
My hon. Friend the Member for Gosport (Dame Caroline Dinenage), who is Chair of the Culture, Media and Sport Committee, has worked with us in Government throughout the development of this Bill. My hon. Friend the Member for Carlisle (John Stevenson) has been a powerful voice in this debate and pressed hard, along with other members of the Northern Research Group, to change the status quo. I would also like to recognise the hon. Member for Bristol West (Thangam Debbonaire), who is my opposite number, and the hon. Member for Barnsley East (Stephanie Peacock), both of whom have been engaged throughout. I know that they are supportive of the ambition behind introducing a new regulator.
Particular thanks should be extended to my hon. Friend the Member for Southend West (Anna Firth), the hon. Member for Reading East (Matt Rodda), my hon. Friends the Members for Hyndburn (Sara Britcliffe) and for Folkestone and Hythe (Damian Collins), my right hon. Friend the Member for Ashford (Damian Green), the hon. Member for Eltham (Clive Efford), the right hon. Member for Walsall South, the hon. Members for Sheffield South East (Mr Betts), for Liverpool, West Derby (Ian Byrne), for Nottingham East (Nadia Whittome) and for Gateshead (Ian Mearns), and many others in this House.
I also thank the relevant all-party parliamentary groups, the football authorities, the Football Supporters Association, the FA, the Premier League and the EFL. Everybody has played their part in making sure that this Bill is in the shape that it is as we bring it forward today. Everybody knows it takes a village to develop a Bill of this size and scope, and credit is due to parties across the House, across football, across academia and across business. Hundreds of people have given us their time and their insight to help get the regulator right, and for that I am extremely grateful.
As Members will know, the centrepiece of this Bill is a new, independent regulator with a clear and unambiguous purpose: to protect the game that we all love. The way to do that is by getting football’s house in order. To that end, the regulator will not interfere with matters on the pitch. Instead, it will be focused tightly on governance, finances, ownership and fans. It will help clubs to build their resilience, while preventing teams from falling into the wrong hands to begin with.
Paul Bristow (Peterborough) (Con)
The mighty Bristol Street Motors trophy winners, Peterborough United, contacted me today to express their support for this Bill, but they suggested that it is vital that the independent regulator has the powers and the ability to intervene on financial model arrangements. Can the Secretary of State guarantee that the independent regulator will have those powers?
Lucy Frazer
The regulator will have significant powers in relation to individual clubs and, when triggered by either the Premier League or the EFL, to the leagues themselves. It will have backstop powers in order to look at the pyramid as a whole.
Kirsten Oswald (East Renfrewshire) (SNP)
I am always delighted to hear conversations about football taking place here or anywhere else. The Secretary of State talks about clubs getting their house in order. Does she agree that an important part of that would involve clubs looking at who their shirt sponsors are? Does she agree that shirt sponsorship by disposable vape companies is wholly unacceptable, has no part in modern football, and sets a really bad example to all our children? We want them to love the game that matters so much to all of us.
Lucy Frazer
I am sure that over the course of this debate many Members will raise issues of concern to them and their constituents. I emphasise that the Bill is about financial regulation, although I am very pleased that the Premier League has taken action on gambling advertising on the front of shirts, which is something we looked at very closely, and that the Government are taking action on vaping and smoking more broadly. The Bill is tightly defined and addresses financial regulation, and I am very pleased that we have introduced this legislation.
Dr Luke Evans (Bosworth) (Con)
The Secretary of State is exactly right about the financial aspects of this Bill, but we have to make sure that we get the balance right. We do not want to kill the golden goose that is the Premier League, and we want to make sure that we have growth in the sport, through the championship and the EFL. We have to consider the crowded calendar of European matches, too. Does she believe that the regulator will have the ability to chart that very fine line between UEFA, FIFA and her proposal? That is going to be pretty tough.
Lucy Frazer
We do not want to do anything that damages the world-leading Premier League, which is worth £7 billion. People across the world look to the Premier League, and we have worked very closely with the Premier League, the EFL and others to try to get the balance right. I have met the executives extensively during this period, and I have met all the clubs in the Premier League and the EFL to try to get the balance right. We are trying to get a light-touch regime that allows the leagues to do what they are already doing, but with a regulator. The Bill is all about financial regulation.
Bill Esterson (Sefton Central) (Lab)
The Secretary of State will understand that many of my constituents who support Everton are greatly concerned about the eight point deduction applied by the Premier League for breaches of its profit and financial sustainability rules. Nottingham Forest face a two point deduction for similar breaches, and other clubs have yet to face any sanction.
Can the Secretary of State reassure my constituents and many other football fans that her commitment to support the Premier League does not mean that the Bill will not have sufficient strength? Does she share my concern that my constituents and many others are worried about a lack of transparency, consistency and fairness in the case of Everton and other clubs? Will she give reassurance on that point?
Lucy Frazer
As I am making clear, the Bill is about financial regulation. I know that many fans are concerned about issues within the game itself. The Bill will not regulate how football is played, which is a matter for the footballing authorities. This is about ensuring that clubs up and down the pyramid are financially sustainable under a regulator. If no deal is agreed on distributions, the regulator can step in. This will protect the pyramid overall.
Clive Efford (Eltham) (Lab)
I am grateful to the Secretary of State for mentioning me earlier. Does she accept that one of the biggest drivers of financial stability is the parachute payments in the championship? Does she think it is a flaw that the Bill excludes parachute payments from the regulator’s powers?
Lucy Frazer
We understand that parachute payments have a role to play. There is provision in the Bill to deal with parachute payments, but that provision relates to the consideration on a club-by-club basis in the licensing regime itself.
James Wild (North West Norfolk) (Con)
When clubs like Norwich City are promoted to the Premier League, those parachute payments give them the confidence to invest, which drives competition in football. Are they not a good thing that we should be supporting?
Lucy Frazer
We believe that parachute payments have a role to play, although I know people have concerns about distortion. Under the Bill, if there is any issue relating to the finances of a particular club, particularly by reference to the parachute payments it might have received, the regulator has an ability to look at that within the licensing regime as a whole.
Mr Clive Betts (Sheffield South East) (Lab)
I have read the Bill, but I wonder whether the Secretary of State has read it. Under clause 55(2)(b), the regulator is not allowed to deal with
“revenue that the specified competition organiser distributes to a club by virtue of a team operated by the club being relegated from a competition organised by the specified competition organiser.”
In other words, parachute payments are deliberately excluded from the remit of the regulator. Why has that been done when it is one of the most distortive elements of the current arrangements?
Lucy Frazer
I have been very intimately involved in this Bill, having put together all the policy recommendations and had discussions with all the parties. I encourage the hon. Member to read all aspects of the Bill, not just the provisions in relation to the backstop, which he quoted. I know many Members feel that parachute payments are very important, so let me try to explain again.
I know that many stakeholders have concerns about the impact of parachute payments on financial stability, sustainability and resilience, and I know that parachute payments can play an important role in softening the financial blow of relegation at all levels of the football pyramid. Given the complexity of the issue, the regulator will need to undertake an holistic, evidence-based assessment of the system of financial distributions as part of its state of the game report, and this will include an assessment of parachute payments.
Parachute payments have been specifically excluded from the backstop mechanism to ensure that the two final proposals from the Premier League and the EFL are easily comparable. The impact of parachute payments on financial sustainability and resilience could be a relevant factor in both the decision to trigger the backstop and the final choice in relation to a proposal. More generally, the regulator can look at the impact of a parachute payment on a particular club when it comes to the licensing regime.
Lucy Frazer
I will press on, as I have now answered five times on parachute payments.
We will achieve our goal through the new licensing regime, under which all clubs in the top five tiers of English men’s football will need a licence to operate as professional football clubs. The regulator will have powers to monitor and enforce requirements on financial regulation, club ownership, fan engagement and club heritage protection, as well as setting a corporate governance code of practice and having the power to prohibit clubs from joining breakaway competitions.
Dr Luke Evans
It is fantastic that the top five leagues will have to have a licence. Will the Secretary of State comment on the resources that will be necessary to put that in place for the season? This is a big undertaking, and considerable resources will be needed to monitor what is going on.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I know that some colleagues who are intervening might not be seeking to catch my eye later. I remind colleagues that if they do intervene, it is customary for them to stay for the entire speech.
Lucy Frazer
The Government are very conscious of the impact on clubs, which is why we are giving them time to prepare for the measures we are bringing into play.
On top of the new licensing system, the regulator will introduce a new strengthened owners and directors test to make sure that a club’s custodians are suitable, and to protect fans from irresponsible owners. This responds directly to growing concerns about financial mismanagement in football, particularly illicit finance, as well as to fans fighting back against owners at clubs like Blackpool and Charlton Athletic. The regulator will also bring in new, robust financial regulation to improve the financial resilience of clubs across the football pyramid.
As members of this House will be all too aware, a lack of financial resilience is one of the key risks to clubs’ futures. Giving the regulator powers to oversee financial plans and to step in to require clubs to beef up their financial resilience, where it has concerns, will prevent clubs from facing cliff-edge situations like we recently saw at Southend United. That will not mean that all clubs have to break even. We know that striving for success can come at a cost and that this ambition makes the game so exciting, so we welcome sustainable, sensible investment. What we cannot have is reckless overspending, irresponsible risk taking and inadequate funding. That is why the regulator will look at each club’s plans and how they are funded, and ensure that clubs have the resources to manage their risk taking. No longer can we have short-term actions jeopardising a club’s long-term sustainability.
Ashley Dalton (West Lancashire) (Lab)
The Secretary of State has mentioned fan engagement a couple of times. Fans increasingly feel as though they are not being listened to by their clubs. The fan-led review, which she has also referred to, made a series of recommendations in 2021 to give fans a real say in how their clubs are run. Will she be clear as to how the Bill will ensure that clubs are effectively and properly engaging with their fans and that fans’ voices are not being ignored?
Lucy Frazer
The Bill identifies a number of things that we know are important to fans, including heritage assets such as the colour of shirts, badges and the location of a club’s stadium. We know that those are the things fans care about. The Bill ensures a proportionate approach, because we know that engagement with different fans at different clubs, which have very different measures in place, will require us to take a proportionate, case-by-case approach. The regulator must ensure a level of engagement with fans, particularly on the issues that I am identifying, but we also want to ensure that it works for the clubs. Therefore, it will be for the regulator to ensure that a proportionate approach is taken.
I was about to go on to discuss that aspect, because we will be setting a minimum standard of fan engagement, and requiring clubs to seek the approval of their fans for changes to those things I mentioned in order to comply with the strong existing protection for club names. We know that most clubs have a strong relationship with their fans, consciously engaging them in decisions about the club’s heritage. However, there have been some notable exceptions, as we have seen at Cardiff City and Hull City, whose fans have had to battle to bring back or keep their club’s colours, badge and name.
As I said, the regulator will also protect fan interests with the requirement for clubs to seek its approval for any sale or relocation of their home ground. The stadium a club plays in is not only of significant value to fans; it can be the club’s most valuable asset, and it is only right that a club seeking to relocate has to demonstrate that such a move would not significantly harm the heritage of the club.
Damian Collins (Folkestone and Hythe) (Con)
The regulator is asked to balance the financial sustainability of the club with heritage concerns and to make an either/or decision, under its purposes. In that scenario, could the regulator decide to allow a club to move if it felt it was best for the club’s future sustainability, even if the fans objected?
Lucy Frazer
Yes, that is right; the regulator has to take into account the views of fans and look at the proposals. If it considers the proposals to be good, that change can take place.
Under the new regulator, fans will no longer face the prospect of seeing their club signing up to ill-thought-out proposals, such as the European super league, which several Premier League clubs tried to join in 2021. The House was united in recognising that those proposals for the new competition were fundamentally uncompetitive and would have undermined the football pyramid, against the wishes of fans. This regulator will prevent that kind of closed-shop league from ever getting off the ground.
Andy Slaughter (Hammersmith) (Lab)
I respect what the Secretary of State is trying to do, but there is a huge inequality of arms between billionaire owners of clubs and fans’ organisations. I have been the MP for Queens Park Rangers for nearly 20 years, but my small borough also contains Chelsea and Fulham, and in my political lifetime all three of those clubs have faced either being folded up by greedy owners or losing their ground in perpetuity. I do not see what in the Bill is going to prevent that from happening in the future.
Lucy Frazer
All the measures in the Bill, cumulatively, will ensure that clubs are well managed and run; therefore, they will be there and will not go into financial insolvency and administration, which decimates communities. All the measures we have set out, be it the owners and directors test, or the measures to ensure that clubs have a financial plan, will ensure that clubs are properly run. We are introducing the Bill to ensure that the situation whereby we have had 64 administrations since the Premier League was founded in 1992 is not continued. We are not saying that clubs are never going to get into financial difficulty, but we are saying that we are going to put a strong framework in place to ensure that all constituents can be confident that their clubs will have a certain level to which their business is run—that they will be run well.
John Cryer (Leyton and Wanstead) (Lab)
Leyton Orient, in my constituency, with which the Secretary of State is familiar, now have owners who are genuinely dedicated to their welfare. Previously, they were owned by somebody on whom the fit and proper person test had no effect, and that person nearly destroyed the second oldest club in London. Is she confident that the Bill will ensure that such people will not get their hands on clubs such as Orient in the future?
Lucy Frazer
Yes. This Bill is all about ensuring that the owners and directors of clubs are fit and proper people, so that what happened to the hon. Gentleman’s club, which I was at just a few weeks ago, does not happen again.
Mr Robin Walker (Worcester) (Con)
I will support this legislation because many of the steps it takes are very necessary. I hope it will mean that Worcester City will never leave Worcester again. Much of what I am hearing about the need to protect the financial sustainability of clubs and leagues also applies in the smaller but still important world of rugby union. As the Secretary of State will know, and as the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), who is sitting next to her, knows very well, Worcester Warriors are currently without a place in professional rugby. If this legislation succeeds, will she consider applying it to other sports, or introducing legislation for other sports, where that is required to sustain opportunities in the professional game?
Lucy Frazer
As my hon. Friend knows, the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), and I have spent time looking at the issues in rugby, and continue to do so. We are setting out what we hope will be a strong financial framework for football. This is being watched closely by other countries that are looking into what they will do in football. Of course if other sports want to look into this, they can.
I move on to the backstop power. Obviously, broadcast revenue is a hugely important source of income for clubs up and down our top-tier football leagues, but the current distribution of revenue across the top five divisions is not sufficient, and football has not been able to come to a suitable new arrangement. Not only does that contribute to problems of financial sustainability, but it can have a destabilising effect on the sport. To avoid that in future, the regulator will have new, targeted backstop powers to help ensure a sufficient flow of money. However, those powers are intended only as a last resort, and can be triggered only if certain conditions are met. The backstop mechanism has been designed with the industry and leading experts to give football incentives to reach a timely compromise, thereby delivering the right outcomes while minimising costly regulatory involvement.
The final part of the regulator’s job is improving the corporate governance of clubs. We will establish a football club corporate governance code, and will require clubs to report regularly on their corporate governance, setting out how they have applied the code and why that is suitable for their circumstances.
Damian Collins
The language in the Bill reflects the language on corporate governance in the Companies Act 2006, but there “corporate governance” includes the relationship that a board of directors has with not only the component parts of the business, but the employees. Should it not be inherent in the Bill that the corporate governance code should suggest how clubs can maintain high player welfare standards?
Lucy Frazer
We looked closely at precedents elsewhere, particularly in regulatory fields, when forming the basis of the Bill. We have always been conscious that we are regulating in a commercial space, and that football clubs are businesses. The premier league is world leading. We are regulating because football clubs have failed to solve these issues themselves. What we do not want to do through this Bill is over-regulate, including in areas in which we would not be regulating but for this Bill. We are trying to strike the right balance. That is why the Bill, notwithstanding questions that have been put to me in this House, focuses on financial regulation. Importantly, it does not interfere with the game, or with how players are looked after. The leagues have a role to play, and they should be primarily responsible for running the game.
Valerie Vaz
Do the regulators have sufficient power to intervene if some of the owners are servicing debts in other areas of their company?
Lucy Frazer
The regulator will have strong powers to look at owners and directors tests, and at financial plans. They will have powers that are designed to ensure the financial sustainability of football. The question that would arise, I suspect, in the right hon. Member’s case is whether that issue was interfering with a particular football club.
Kevin Brennan (Cardiff West) (Lab)
The Secretary of State is being very generous with her time. I thank her for mentioning Cardiff City. I hope to catch Madam Deputy Speaker’s eye later and talk some more about them.
One reason why the Government regulate in the commercial space and in business is to promote competition. In the White Paper, the Government said that the scale of parachute payments can distort competition in the championship and encourage greater financial risk-taking by clubs not in receipt of them. If the regulator has no power in this sphere, how will we ensure that the pyramid is a reality, rather than it becoming ever more difficult to climb?
Lucy Frazer
I recognise the concerns raised about parachute payments and the distortion of competition. On the backstop powers, parachute payments have been included because of the way that the backstop mechanism works; two offers are made by the Premier League or by the English Football League. However, that is not to say that parachute payments are completely ignored. The regulator will look at the state of the game in a holistic way. Also, it is not to say that if the parachute payments affect the running and finances of a club, the regulator has no ability to look at those payments.
Robin Millar (Aberconwy) (Con)
The Secretary of State said something very important about looking at precedents for regulation in other areas. Certainly, one reason why I am in the Chamber today is my love of the game; although I recognise that there are financial matters that need regulation, that is not the whole of the issue. My concern, and that of many of my constituents, is about the matter being treated simplistically, as if there was just one set of financially related problems, without consideration for community ties, the involvement of fans and so on. When she looked at other examples, did she find anything that managed to crack that nut, or that captured that nuance?
Lucy Frazer
There does not need to be a nuance. The whole point of this legislation is to protect fans, communities and clubs. At the heart of that is making sure that clubs are financially sustainable. None the less, in the legislation, we also have measures to ensure fan engagement on the things that fans care deeply about—the heritage, for example. I cannot overstate the point that although we want to protect the premier league, which is an important, world-leading asset, we also want to protect fans and communities, and that is what this legislation is all about. Taken together, the new measures and the carefully considered remit of the regulator will help us to safeguard clubs, protect the interests of our fans and avoid unnecessary and excessive regulation.
The vast majority of our clubs are run well and live within their means. I am confident that those clubs and their owners will recognise that the Bill, and the new regulator, will allow us to put football on a solid basis for years to come. The Bill will preserve and enhance all the things that we love about our national game, and I commend it to the House.
Oral Answers to Questions
Lucy Frazer Excerpts(7 months, 2 weeks ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Getting people active is absolutely vital, particularly those who are not active at the moment, which will include those from low-income families. That is why we have a sport strategy to get 3.5 million people more active. It is why we are investing around £400 million in grassroots sports facilities up and down the country, including £4 million in Newcastle upon Tyne Central. We are ensuring that that money is targeted particularly on the most deprived neighbourhoods.
Chi Onwurah
I hope the Secretary of State will join me in congratulating Newcastle United women on their promotion to the championship. This season, they have helped inspire more than 300 young girls to take part in Newcastle United Foundation’s Premier League Kicks sessions, but with a third of young people in Newcastle inactive and our childhood obesity rates the highest in the region and among the highest in the country, we cannot leave it all to the foundation. How frequently does the Secretary of State meet the Department for Education to ensure that disadvantaged young people have access to sporting opportunities in schools? Specifically, what comparison has she made between sporting facilities in the state and private school sectors?
Lucy Frazer
This is a really important area, and I congratulate the Newcastle United women on their success and, indeed, all women taking part in sport. That is why, through the future Lionesses fund, we have invested £30 million for 30 pitches across the country to make sure that women get more activity and more opportunities to take part in sport. The specific question was about engagement with the Department for Education, which I have regularly. In fact, it sits on the taskforce I was talking about to get more people active, as do other Departments. We all need to work together to make sure we get more sport in school, more people active and equal opportunities for young girls in schools across the country.
Thangam Debbonaire (Bristol West) (Lab)
More than 1 million girls who considered themselves sporty while at primary school drop out of sport as teenagers. I was one of those girls, and I did not do any sport from puberty until my late 40s, when I discovered running. This weekend, I will be running my second London marathon in aid of Bristol Refugee Rights—feel free to donate. On this Government’s watch, inequality between girls and boys on physical activity has got worse, with 22% fewer girls than boys taking part in team sports. I do not want any tepid words about things the Secretary of State says she is committed to. We have 860,000 girls missing out on the joy of physical activity—why?
Lucy Frazer
I hope the shadow Secretary of State does very well on Sunday, and I wish her the best of luck. I am absolutely committed—these are not just warm words—to ensuring that more girls and women get involved in sport. I say that they are not just warm words because we have a plethora of policies already in play on this issue, whether that is: investing in football and working with Karen Carney on her women’s football review; building pitches to ensure that girls and women have priority access to sport; the £400 million for multi-sport facilities, which goes across the country; or the taskforce that I talked about, which will get 1 million children more active. We are particularly prioritising people who are inactive at the moment, which unfortunately does include girls.
Andy Carter (Warrington South) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Between 2021 and 2025, the Government have committed more than £325 million to grassroots sports sites across the whole of the UK. That is part of our commitment to ensure every community has the facilities it needs. So far, almost 2,400 sites have been supported, creating more opportunities for people of all backgrounds across the country to get active.
Virginia Crosbie
Thanks to the UK Government’s multi-sport grassroots facilities programme, almost £100,000 has been invested across Anglesey to improve sports facilities at Holyhead Hotspur, Plas Arthur in Llangefni, Tŷ Croes and Bodedern. Sport helps families across Ynys Môn be more active, healthier and happier. Will the Secretary of State join me in thanking Ynys Môn gymnastics club, Barton Dance and Drama Academy, Ynys Môn Celts basketball club and all those working hard to make my summer activities fair at the Canolfan Holyhead on 8 June a success?
Lucy Frazer
It is fantastic to hear about the community events taking place in the hon. Friend’s constituency. I am delighted that she has put together such an active and exciting event, and I wish her all the best on 8 June. Such events bring communities together. I wish her and everybody a wonderful time.
Andy Carter
Cromwell Athletic, who play at Mary Ann Meadows in my constituency, have had to cancel almost 70% of their grass pitch games this season because conditions have made the ground simply unplayable. The pitch improvement programme shows that we need around eight 3G pitches in Warrington to cope with demand. Could my right hon. Friend set out what support is available to clubs with significant junior membership? I invite her back to Warrington to see some of the teams who are struggling to access 3G pitches, to talk about how we can help them.
Lucy Frazer
Through our investment via the Football Foundation in England, we are actively supporting teams such as Cromwell Athletic up and down the country to get new artificial grass pitches. We funded the goalposts at Barrow Hall Primary School and put in a new artificial grass pitch at Cardinal Newman Catholic High School. It was a pleasure to visit my hon. Friend’s constituency, and I would be happy to meet him to discuss this issue further.
Andrew Rosindell (Romford) (Con)
Dr Luke Evans (Bosworth) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
As my hon. Friend will know, the Football Governance Bill was introduced to Parliament last month, and it will help with the financial sustainability of football as a whole. I have met the Premier League, the English Football League, many stakeholders and parliamentarians to ensure that the legislation is appropriately drafted. I have met over 90 clubs and senior executives from the leagues many times.
Dr Evans
I am grateful to the Secretary of State for that answer. We do not have to look too far across the east midlands to see that clubs such as Nottingham Forest, Derby County, Coventry City and Leicester City have found themselves in some form of difficulty, so I welcome the Government’s plans to introduce a regulator to bring some stability to the football pyramid. However, how do we ensure that we strike a balance so that we do not strangle and over-regulate the best league in the world, the premiership?
Lucy Frazer
As my hon. Friend mentions, the Premier League is world leading. It is worth £7 billion, and we absolutely want to ensure that it stays first and world class. That is why the legislation takes a proportionate approach. It takes on board the fact that the regulator will have to work very closely with the leagues, including the Premier League. We call it an advocacy-first approach, and having worked very carefully with the team, I am very confident that the legislation takes a balanced and proportionate approach.
Dan Jarvis (Barnsley Central) (Lab)
Football is nothing without the fans, and the Secretary of State may recall that a while ago I mentioned to the Sport Minister the idea of a postponement promise. That was in response to a spate of fixtures that had been cancelled at very short notice. The Minister said that he would raise it with the EFL, and I understand that he did so. I am grateful for that, but I wonder whether the Secretary of State agrees that we need to keep the momentum going forward. Will she and the Minister continue to work with the EFL to come up with a solution that works for fans?
Lucy Frazer
The hon. Member is absolutely right about the importance of fans and communities to football, which is why the Government are bringing forward legislation to protect fans across the country. My junior Minister is a valued colleague who supports me and works very hard across his portfolio. I know he has raised this issue with the EFL, and I will talk to him about it.
Alex Davies-Jones (Pontypridd) (Lab)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
This Government recognise just how important the arts are, which is why the Chancellor used the Budget to extend, introduce and make permanent a range of tax reliefs to drive growth and investment in our creative industries. We have provided tax reliefs worth £1 billion over the next five years for museums, galleries, theatres, orchestras, independent film productions, film studios and the visual effects industry. In addition, as Sunday draws near, I want to wish all those running and taking part in the London marathon the best of luck—in particular, the shadow Secretary of State, the hon. Member for Bristol West (Thangam Debbonaire).
Alex Davies-Jones
With Monday marking the 35th anniversary of the Hillsborough tragedy, we will always remember the 97 victims who were killed unlawfully. Does the Minister agree that, in their memory, we must take a stand against those who think it is acceptable to ridicule this disaster in order to rile up rival teams? If so, what is she doing to tackle this issue of so-called tragedy chanting?
Lucy Frazer
Tragedy chanting is absolutely abhorrent and has no place in football, or indeed in any sport. The Government fully support the football leagues and the police in their efforts to identify and deal with the culprits. Tragedy chanting can be prosecuted as a public order offence, with guilty individuals being issued with football banning orders preventing them from attending matches in the future.
Andrew Rosindell (Romford) (Con)
Lucy Frazer
First, I extend my congratulations to Romford football club on reaching the final of the FA vase—it is a wonderful achievement and I wish the team the best of luck at Wembley. On the issue of BBC Essex, as my hon. Friend will know, the BBC is operationally and editorially independent of the Government, but I know that my hon. Friend has raised his concerns directly with the BBC, and I am sure that it will get back to him.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the SNP spokesman, John Nicolson.
John Nicolson (Ochil and South Perthshire) (SNP)
Since we last met, the media regulator Ofcom has again reprimanded GB News for breaching impartiality rules. Ofcom says that news programmes should not be presented by politicians. The Tory Benches host a plethora of Ofcom rule-breaching MPs who leave this place to freelance as pretendy news presenters on a channel that spreads conspiracy theories and disinformation, and that undermines Ofcom. I am on the side of journalism, not disinformation. Does the Minister agree with me that GB News should drop the propaganda and obey the regulator?
Lucy Frazer
I am in favour of media plurality; I think it is important that there are channels for everybody to watch, and GB News is a very popular outlet. I think that the person to regulate GB News is Ofcom, not those on the shadow Benches.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
Crewe Amateur Musicals Society opens what I am sure will be a fantastic production of “Kinky Boots” at Crewe Lyceum this evening, but I am concerned that Arts Council funding does not do enough to support existing groups and activities. As well as joining me in wishing the Crewe Amateur Musicals Society good luck this evening, can my right hon. Friend meet me to discuss Arts Council funding?
Richard Fuller (North East Bedfordshire) (Con)
The Secretary of State will be aware of the proposal by Universal Studios for a theme park in Bedfordshire—a £10 billion investment in the country. She will also be aware of the strong local support, led by Conservative Mayor Tom Wootton, so can she assure me and other Bedfordshire MPs that she is working hard with the Treasury to get a response to that proposal, and that a Government proposal will be forthcoming before the summer?
Lucy Frazer
My hon. Friend is right to raise this very exciting opportunity for Bedfordshire, which I am pleased to have discussed with him. We are liaising closely with the Treasury, and I am also happy to continue liaising with my hon. Friend.
Patrick Grady (Glasgow North) (SNP)
Lucy Frazer
I am very pleased to congratulate Portsmouth football club on its success. My hon. Friend is absolutely right to highlight the importance of local clubs and what they do in their communities. It is not just the match on a Saturday; it is also about what they do to encourage people to get involved in their community and to get fit and active. Going around the country, I have seen some fabulous examples of what sports clubs—not just football but rugby and cricket—do for their local areas.
Liz Twist (Blaydon) (Lab)
Lucy Frazer
I am pleased to have spoken to Karen Carney on a number of occasions about her review and the importance of women’s football, and I am also pleased to take on board all her recommendations. The Government approved all the review’s recommendations, and I am pleased to chair the first implementation group, which is ensuring that the recommendations will be implemented by the Football Association and others.
Pete Wishart (Perth and North Perthshire) (SNP)
Since I last raised the closure of small music venues, two a week continue to close. There is now a growing consensus within the live music sector that a £1 levy should be put on large music venues and those who are making massive profits at live events. The Culture, Media and Sport Committee is looking at this, and I have listened very carefully to the evidence. If it is recommended, will the Minister put in place a levy similar to the one in other countries across Europe?
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The “Space Investigators” exhibition at the Great North Museum celebrates the amazing history of the north-east in designing and manufacturing telescopes. What support does the Minister offer so that regions such as ours can better understand and promote our great industrial heritage?
Lucy Frazer
I am pleased that work has been going on in the hon. Lady’s constituency on these important matters. Of course, through Arts Council funding and through Department for Culture, Media and Sport funding, we support institutions across the country that support the history of, and what is going on in, their local communities, as well as arts across the country.
Christine Jardine (Edinburgh West) (LD)
This is the 900th anniversary of the founding of Edinburgh city and St Giles’ cathedral. Celebrations are planned to mark it, so will the Minister tell us whether the Department is going to be working with the devolved Administration and supporting the local council in celebrating that anniversary? And would she like to come and join the party?
Telegraph Media Group: Anticipated Acquisition
Lucy Frazer Excerpts(8 months, 2 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
On 19 March, I confirmed to Parliament that, on the basis of assessments by the Competition and Markets Authority and by Ofcom, I am minded to refer the anticipated acquisition of Telegraph Media Group Ltd by RB Investco Ltd to a phase 2 investigation on the grounds of the need for accurate presentation of news and free expression of opinion in newspapers.
I set a deadline of 9 am on Monday 25 March 2024 to allow the parties the opportunity to make representations to me before I reach a final decision.
Further to a request from one of the parties, I have confirmed an extension to that deadline, which will now be 9 am on Tuesday 2 April 2024.
[HCWS374]
Telegraph Media Group Ltd: Acquisition
Lucy Frazer Excerpts(8 months, 2 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
On 26 January 2024, I issued a public interest intervention notice (PIIN) in relation to the anticipated acquisition of Telegraph Media Group Ltd (TMG) by RB Investco Ltd on the grounds of the need for accurate presentation of news and free expression in newspapers.
The PIIN triggered a requirement for Ofcom to report by 11 March on the media public interest considerations and the Competition and Markets Authority (CMA) on jurisdiction and competition issues. I issued a statement on 12 March to confirm that I had received those reports and undertook to set out my “minded to” decision on the next step in this process: whether or not to refer the merger to a fuller phase 2 investigation.
On the basis of the regulators’ assessments, I can now confirm that I am minded to refer this merger to a phase 2 investigation on the grounds of the need for accurate presentation of news and free expression of newspapers.
The CMA has found that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; a finding that is a prerequisite for me to be able to refer this matter for a further investigation at all. However, it does not believe that it is or may be the case that this merger has resulted, or may be expected to result, in substantial lessening of competition within a market or markets in the United Kingdom for goods or services.
Ofcom has found that it is or may be the case that the potential merger situation may be expected to operate against the public interest, having regard to the specified public interest considerations. In particular, it considers that International Media Investments (IMI), a majority partner in RB Investco’s parent company, may have the incentive to influence TMG in a way that could potentially act against the public interest in the UK by influencing the accurate presentation of news and free expression of opinion in The Daily Telegraph and The Sunday Telegraph newspapers.
I will be publishing both the CMA and Ofcom reports in due course, copies of which will be deposited in the Library of both Houses. I will also publish the letters to both parties setting out my “minded to” decision.
I am now required by legislation to allow the parties the opportunity to make representations to me before I reach a final decision. I have given them until 9 am on 25 March 2024 to respond.
I will aim to make a further statement on any decision I may come to as quickly as possible.
The pre-emptive action order I issued on 29 January 2024 will continue to apply to the merging parties and related entities until a final decision has been taken on matters described in the January PIIN.
In the meantime, given the ongoing quasi-judicial nature of this process, I am unable to comment substantively on the matter of this case.
I had also issued a PIIN on 30 November 2023 in relation to the anticipated acquisition of Telegraph Media Group Ltd by RedBird IMI, which was then RB Investco’s parent company.
The CMA has found that arrangements as described in the November PIIN are no longer in progress or in contemplation. I accept the CMA’s findings on this matter and this PIIN now ceases to be in force.
[HCWS357]
Arts Council England: Public Body Review
Lucy Frazer Excerpts(8 months, 3 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Today we are announcing that the second stage of the public body review into Arts Council England is under way.
The public bodies review programme delivers against the commitments made in the “Declaration on Government Reform” to increase both the effectiveness of public bodies and departmental sponsorship, making Government and public bodies work better in service of the public. Public body reviews will be underpinned by broad minimum requirements covering efficiency, efficacy, accountability, and governance. The review will follow guidance published in April 2022 by the Cabinet Office: “Guidance on the undertaking of Reviews of Public Bodies”.
Arts Council England is an executive non-departmental public body, and was established by Royal Charter in 1946. It is one of the Government’s primary vehicles to support the arts and creativity in England. Its role encompasses funding and investment, research, support and advice to the sector, and partnership promotion.
The Government are proud of the work they have undertaken with Arts Council England, providing increased investment in arts and culture through its most recent funding portfolio, and spreading opportunity across the country to a record number of organisations.
The Department has agreed to commence a full-scale review into Arts Council England, and Dame Mary Archer has been appointed as the independent lead reviewer. She will work with a review team composed of officials from the Department and an advisory board of people with a range of experience in the arts and culture, detailed below.
Dave Moutrey (Chair)
Sir Damon Buffini
David Butcher
Tony Butler
Leila D’Aronville
Nathaniel Hepburn MBE
Baroness McIntosh of Hudnall
Sir Simon Robey
Gurvinder Sandher MBE DL
Professor Katy Shaw
Sarah Staniforth CBE
Jo Verrent
Dr Sharon Watson MBE DL
Sue Williamson MBE
The terms of reference for the review have been drafted following consultation between the lead reviewer, the Department and Arts Council England, and the review will broadly look at the following areas:
Arts Council England’s delivery model and whether it is correct to deliver effective outcomes for the public;
Arts Council England’s grant monitoring procedures and overall efficiency;
Arts Council England’s statutory functions;
Departmental sponsorship; and
Arts Council England’s accountability to the Department, respecting the importance of the arm’s length principle and the Arts Council's responsibility as custodians of public money. In conducting the review, officials will engage with a broad range of interested parties in the arts and creative sectors across the UK.
As set out by the Cabinet Office guidance, the review will report to the Government, and the Government will publish the conclusions of the review and any Departmental response in due course.
[HCWS347]
Telegraph Media Group: Anticipated Acquisition Reports
Lucy Frazer Excerpts(8 months, 3 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Today I can confirm that I have received reports from the Competition and Markets Authority (CMA) and from Ofcom on merger situations involving Telegraph Media Group Ltd (TMG). These reports were provided in response to the public interest intervention notices (PIINs) that I issued in the anticipated acquisition of TMG by RedBird IMI on 30 November 2023 and RB Investco Ltd on 26 January 2024 respectively.
The PIINs required the CMA to report to me on my jurisdiction to intervene in these merger situations, and if any competition concerns may arise as a consequence. They also required Ofcom to assess and report to me on the need for accurate presentation of news and free expression of opinion in newspapers.
Next, I will decide, in a quasi-judicial capacity, whether or not I am minded to refer this merger for a further investigation by the CMA.
I will aim to publish the CMA and Ofcom reports and make a further statement on any decision I may come to as quickly as possible.
In the meantime, given the ongoing quasi-judicial nature of this process, I am unable to comment substantively on the matter of this case.
[HCWS334]
Budget Resolutions
Lucy Frazer Excerpts(8 months, 4 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Since 2020, our economy, like those across the globe, has been challenged by a pandemic, a war in Ukraine and the spiralling cost of energy in the aftermath of Putin’s illegal invasion of Ukraine. We have seen very difficult times for households up and down the country, but despite the most challenging economic headwinds in modern history, since 2010 our growth has been higher than every large European economy. Economic growth underpins jobs, it underpins household budgets and it underpins living standards. Having stabilised the public finances and delivered certainty to markets, my right hon. Friend the Chancellor of the Exchequer last week set out a plan that will ensure more investment, more jobs and better public services.
Today, I will set out how the Budget continues to support many of the sectors I am proud to represent at the Department for Culture, Media and Sport, particularly the creative industries, which the Chancellor last year identified as one of our five priority sectors of growth. The creative industries do not just enrich our lives; they enrich the nation’s finances, and they are an economic powerhouse. These industries are growing at twice the rate of the rest of the economy. They are responsible for over 2 million jobs, and they were worth £124 billion to our economy last year alone.
I start by just recognising the UK’s world-leading success in these industries. Netflix, Amazon Prime, Apple and Disney all want to expand their footprint here and to add “Made in Britain” labels to their productions. “Barbie”, the highest grossing film of 2023, was made not in LA, but just down the road in Leavesden, which I was delighted to visit recently with my hon. Friend the Member for Watford (Dean Russell). Companies such as Warner Bros are choosing Hertfordshire over Hollywood, and that production alone contributed £80 million to our economy and supported nearly 700 jobs. We have also seen huge success in the indie film sector, with films such as “Rye Lane” and “Scrapper”.
This success is down to huge innate British talent, hard work, skills and creative excellence across the country, but it has not happened by accident. Conservative Governments have been supporting and stimulating our creative industries with tax reliefs for over a decade. From film to animation, video games and theatre, these tax reliefs have helped to attract significant global investment into the UK. Every year since 2012, we have introduced tax reliefs to support investment and create jobs—tax reliefs that the Labour party voted against every single time.
Alex Sobel (Leeds North West) (Lab/Co-op)
The Secretary of State talks about a number of productions and studios, all of which are in the south of England. What support will the Government give to ensure that we have post-production and production facilities in the north of England—for instance, by matching Mayor Tracy Brabin’s ambition to have a studio in West Yorkshire?
Lucy Frazer
The Government are supporting creativity across the country. In June, I announced £50 million, which we know from experience will leverage £250 million of investment, for creative clusters across the UK. Only recently, I was at Aviva Studios in Manchester. The £100 million invested in Manchester is the biggest investment since the Tate Modern. The hon. Member will have heard in the Chancellor’s statement about the significant investment in Teesside, particularly in the creative industries.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
But the Tories have truly wrecked the nation’s public finances. Under the Conservatives, debt has tripled from £1 trillion to almost £2.6 trillion. Does the Secretary of State agree that according to respected independent statistics, despite the Chancellor’s Budget, households in Slough and across our country will be £870 worse off on average under the Chancellor’s tax plan?
Lucy Frazer
The Chancellor’s tax plan is allowing people across the country to benefit from around £900 if they are an average earner, and we know that every time the Labour party leaves office there is higher unemployment. Last time the Labour party was in government, it left a note that said there was “no money left”.
Let me tell the House what impact the Conservative plan has delivered over the last decade. As I said, there have been tax reliefs in every Budget over the past 10 years, and every time they were voted down by the Labour party. The impact of that year-on-year investment is clear. Statistics show that more than 1 million jobs in the creative industries have been created since 2010. There has been almost a doubling of the economic value of creative industries to more than £124 billion since 2010, with exports up 210% in that time. Recently published figures confirm that the sector has grown by more than 10% since the pandemic. The Conservative party is powering one of our world-leading industries.
Mr Toby Perkins (Chesterfield) (Lab)
The Minister is talking about the state of the nation’s finances in 2010, and at that point we had a national debt of £1 trillion. We now have a national debt of £2.6 trillion. Does she think that the Conservatives have sorted out the nation’s debt when it is now almost three times higher than it was?
Lucy Frazer
I hope the hon. Gentleman was listening when the Chancellor delivered his Budget. He highlighted that debt will be reducing next year, with the Office for Budget Responsibility forecasting that we will meet our fiscal rule to have debt falling as a share of the economy.
George Freeman (Mid Norfolk) (Con)
It merits recording that the debt figure we are dealing with comes from a £500 billion bail-out of the banks under Gordon Brown, £375 billion of quantitative easing, £70 billion of Brexit relief, £400 billion of pandemic relief, and £40 billion of cost of living relief. That is a significant injection of money by this Government, and the previous one, to help people through tough times.
Lucy Frazer
My hon. Friend, as always, makes an excellent point. It is difficult to forget how this Government, and the Prime Minister when he was Chancellor, supported the livelihoods and economies of people up and down the country. In the creative industries alone, a covid recovery fund of £1.57 billion went to ensure that those industries continued to survive. The International Monetary Fund and others said that that was the fastest and most effective package coming out of covid.
Jim Shannon (Strangford) (DUP)
I welcome what the Government are doing for the creative industries in Northern Ireland. The Northern Ireland film sector has been growing leaps and bounds over the past few years. The extra help that the Government are putting forward for creative industries in Northern Ireland will undoubtedly create more jobs and a boost for the economy. I welcome what the Secretary of State is putting forward. Now that the Northern Ireland Assembly is up and running again, can contact be made with the relevant Minister to see how we can grow the industry even more?
Lucy Frazer
I am delighted that the Northern Ireland Executive are up and running, and keen to continue engagement with them to ensure that we continue to boost the economy in Northern Ireland.
Our creative industries are not just life enhancing and entertaining, and they are not just part of our personal and national identities; they are an economic powerhouse that is dominating the world stage. In the past year, we have built on the huge success of the decade of investment that I spoke about with an industry-led sector vision that sets out a plan to unlock £50 billion of growth, 1 million more jobs and a pipeline of talent by 2030. Both the Chancellor and the Prime Minister recognise that the way we will extend our excellence long into the future is with sustained investment and commitment to those sectors. That is why the Budget that the Chancellor set out last week continued that support and built on that recognition with a package of measures to cement our status as a cultural superpower.
Members should not just take my word for it. The reliefs announced represent a
“once-in-a-generation transformational change that will ensure Britain remains the global capital of creativity”,
according to Lord Lloyd Webber. They include
“the most significant policy intervention since the 1990s”,
according to Ben Roberts, the chief executive of the British Film Institute. They are “game changing” according to “James Bond” producer Barbara Broccoli. Those people are all correct.
There will be £1 billion in additional tax relief for the creative industries over the next five years. We have set permanent high rates of cultural tax relief: of 45% for touring and 40% for non-touring theatre productions and gallery exhibitions, and of 45% for all orchestra productions. There is a new 53% tax credit for UK independent films with budgets of under £15 million, a 40% tax relief on business rates for film studios, and an increased tax relief for the visual effects sector. There is £26.4 million for the National Theatre to modernise its stages and new funding for an extension of the National Film and Television School.
The funding and tax breaks will unlock huge investment in our economy, secure the long-term future of some of our great cultural institutions and help us build a pipeline of talent for the future. We are only five days on from the Budget and the measures are paying dividends already. Later this year, the filming of “Jurassic World 4” will begin at Sky’s Elstree studios. As Sir William Sargent, chief executive of the visual effects company Framestore, said, it is likely that our decision to remove the 80% cap on what productions can claim on visual effects has stopped the visual effects for “Jurassic World 4” from being made abroad. That is our long-term plan for growth, and it is delivering growth within days of the Budget.
However, our ambitions rightly stretch far beyond our world-class creative industries. At the last autumn statement, the Chancellor unveiled 119 growth measures which, taken together, could raise business investment by around £20 billion per year in a decade’s time. He has followed that up with a Budget designed to deliver an economic gear shift for businesses across different industries—from life sciences, to manufacturing, to AI.
There is over £270 million of combined Government and industry investment into cutting-edge automotive and aerospace R&D projects. There are grants of £92 million of joint Government and industry investment into the life sciences and up to £100 million in the Alan Turing Institute, our national institute for AI and data science, over the next five years. There are strategic investments designed to unlock growth and propel our economy forward. These long-term decisions will place us at the vanguard of these pioneering industries of the future, where we belong.
The Government recognise how hard the last few years have been on people’s and families’ finances. That is why the Prime Minister set five clear and unambiguous priorities, consistent with those of people across the country who have battled with the rising cost of living. The Prime Minister, the Chancellor and the entire Cabinet have been laser focused on those priorities, and we have made significant progress in delivering on them.
Mr Dhesi
The Secretary of State speaks about tax reliefs and long-term decisions, but thanks to this Government we now have the highest tax burden since the second world war. Will she confirm the Office for National Statistics figures showing seven consecutive quarters of falls in GDP per capita since 2022? Does she agree that that is the longest period of stagnation since the 1950s?
Lucy Frazer
The hon. Member makes a number of points. On taxes, we are sticking with the plan, which is to get taxes down. We are doing that by yet again reducing national insurance contributions. There are reductions for 29 million people and tax cuts for 27 million working people from April. He mentioned the tax-to-GDP ratio, where the UK tax system remains competitive: we have a lower tax-to-GDP ratio than any other European country in the G7. Germany’s is at 39.3%, France’s is at 46.1% and Italy’s is at 42.9%, based on 2022 figures.
Sir Edward Leigh (Gainsborough) (Con)
On tax cutting, there has always been a social contract in this country by which people pay national insurance until they become of pensionable age, and then they do not pay national insurance. Therefore, cuts in national insurance do not help pensioners, and in particular aspiring pensioners, who have put something aside. What I would like to know from the Secretary of State—I see alongside her the Exchequer Secretary to the Treasury, who said this change might take decades—is what is the long-term plan to protect pensioners? National insurance cannot just be abolished and replaced with nothing. It can only be replaced with higher tax, from which pensioners do not benefit.
Lucy Frazer
My right hon. Friend knows that we want to reduce taxes on working people. It is not right that they have double taxation. He will also know about the importance of protecting pensioners, which is why, throughout our time in government, we have protected them, with one of the key ways of doing that being through the triple lock.
I will highlight the progress made on the five priorities that the Chancellor and the Prime Minister set out some time ago. Debt is falling in line with our fiscal rules, inflation has halved and growth is a full 1.5 percentage points higher than predicted. That has only been possible because of the decisions taken by this Government, such as putting an average of £900 back into the pockets of 27 million workers in the space of four months. There is further to go, and the Budget will help us get there, creating more success stories like our creative industries across our economy and across the entire United Kingdom.
While the Labour party snipes aimlessly and endlessly from the sidelines, we are targeting funding where it is needed most. While the Labour party talks the economy and indeed the rest of the country down, we are backing working families and British businesses with tax cuts and tax breaks. While the Labour party U-turns on its U-turns, we are putting our economy on track for new jobs, new growth and new investment. The Conservative Government have a plan, and that plan is working. I commend the Budget to the House.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the shadow Health and Social Care Secretary.