Birmingham Commonwealth Games Bill [Lords] Debate
Full Debate: Read Full DebateAlison McGovern
Main Page: Alison McGovern (Labour - Birkenhead)Department Debates - View all Alison McGovern's debates with the Department for Digital, Culture, Media & Sport
(4 years, 2 months ago)
Commons ChamberI beg to move, That the clause be read a Second time.
Before I say a few words on the importance of the living wage, I just want to say that the games are a massive opportunity for Birmingham, one of the most important cities in our country, and the west midlands. I pay tribute to all those, including my predecessor in this role, who have seen the Bill through its stages so far. Glasgow, Manchester, Edinburgh, London and Cardiff have all hosted the games at various points in their almost 100-year history. Birmingham more than fully deserves this opportunity, particularly given the circumstances under which the city has taken on hosting the games. I would like to take a moment to pay tribute to everybody in the west midlands who I know is working very hard to get ready for the games. It is a challenge made all the more difficult by the current virus outbreak, but I know they are working with complete dedication to make sure that, as much as possible, Birmingham will be ready for the games.
In a way, the situation we are in makes 2022 all the more important as a date to look forward to. I know that sport is only relatively important, whatever people from my native Merseyside might think, in comparison to the challenges we face as a country, but I know that many people will be looking forward to the Commonwealth games as a moment that near enough represents a return to the great sporting culture of our country. In many ways, the Bill is made more important by the current coronavirus context.
This week, we think about our diversity as a country. It is poignant to end this week in Parliament with a Bill that will enable one of our country’s most diverse cities to host an esteemed sporting event which, as well as competition, has at its heart a celebration of that diversity. We will celebrate the games bringing together 71 teams from around the world, and it will feature 24 disciplines from across 19 different sports. Three new sports will be introduced—women’s cricket, beach volleyball and para-table tennis—and I am sure the Minister will join me in celebrating that this Commonwealth games has the potential for more female medals than male medals, and will also host a fully integrated para-sport competition. So sport can be—I stress can be, not necessarily is—an important vehicle for diversity.
I expect—in fact, the Government require—all employers to pay at least the national living wage. That is Government policy. I respect the right hon. Gentleman’s goals and ambitions, but I wish he would stick to the reality of what actually happens in government, rather than playing politics in terms of conversations and ambitions.
In the aftermath of covid-19, the games will be more important than ever in supporting the economic, cultural and social renewal of the west midlands. There will be more than £300 million in procurement contracts for local businesses, support for thousands of jobs and an integrated trade, tourism and investment programme, which will help to ensure that the games are at the heart of recovery efforts across the region.
I really must draw the Minister back. This is not a matter of party politicking; this is about whether we have food banks or not. Given what he has said, could he just answer the question about the actual real living wage that my right hon. Friend the Member for Birmingham, Hodge Hill just asked him? Does he believe that the organising committee will be able to accredit to the Living Wage Foundation and meet its standards or not?
As I said, the Government’s policy is already for a national living wage. That is Government policy. I understand the ambition and intent of the Opposition. It is the same as the Government’s: to raise the living standards of the lowest paid in society, and that is what this Government are delivering on, instead of just talking about it.
In 2020 alone, £145 million-worth of contracts will be available, with the organising committee continuing to promote these in recent weeks through webinars involving the local chambers of commerce. The trade, tourism and investment programme will showcase the best we have to offer a global audience and strengthen our economic ties with our friends right across the Commonwealth. It will be supported by £21 million of Government funding, ensuring that we can take advantage of the economic opportunities created by the games to deliver on the ambition that Opposition Members have just talked about. The Mayor of the West Midlands, the fantastic Andy Street, also announced just a few weeks ago that the West Midlands Combined Authority had launched a new Commonwealth jobs and skills academy to improve regional skills and employment opportunities through the games. This will be underpinned by a further £1 million of public money.
I have no reason to respond to the right hon. Gentleman’s comments. I have a regular and very constructive dialogue with the Mayor of the West Midlands, who is doing everything he can to ensure that the games are highly successful. He has been absolutely pivotal in the success achieved to date, and will continue to do that for as long as he is in office—hopefully for a much longer period of time.
Let us not forget that the Birmingham 2022 games will be the first Commonwealth games with a social values charter. Accordingly, the organising committee has ensured that its procurement processes place added value on promoting those values. Added weight is being given to those companies that prioritise local employment opportunities and skills development. Alongside that, work continues to ensure that local organisations and voluntary, community and social enterprises can benefit from the opportunities of the games.
The best way to improve the economy and pay in the west midlands is to invest in skills and support business growth, which is exactly what the Commonwealth games programme will do. I hope that with those assurances, and taking into account the significant economic uplift that the games will generate for the local and regional economy, the hon. Member for Wirral South sees fit to withdraw her new clause.
Having listened to the case made by my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), I simply do not know why the Minister would not get to his feet and just say yes. This is not about some political to and fro; it is about the important distinction between what has been sold to people as a living wage and what is in fact a wage that is calculated on the basis of people being able to live on it. That is the difference; that is what we are arguing about. It is a simple choice: food banks or not. I think the answer is not.
The social values charter that the Minister mentions is welcome, if woolly. It is a good ambition, but it does not really commit the organising committee—it certainly does not commit them to enough, and it does not commit them to the specifics. People will judge the games by not only how successful they appear but the reality of their lives when they have been able to participate in them. As I withdraw the clause, with your leave, Madam Deputy Speaker, I say simply that this will not end here. We will not stop going on about this, because the money in people’s pockets is of the most profound importance. Until the Minister is able to make that commitment, we will go on, but I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.
New Clause 2
Local Commonwealth Games levy
‘(1) The Secretary of State must make regulations to provide the powers necessary for the relevant local authorities to levy charges on hotel occupancy and short-term rentals in their respective areas for the duration of the Birmingham Commonwealth Games in the United Kingdom.
(2) The regulations must define “relevant local authorities” to include the local authorities for each Games location.’—(Alison McGovern.)
This new clause would provide for money to be raised during the Games by the relevant local authorities charging a levy on hotel occupancy and short-term rentals.
Brought up, and read the First time.
I beg to move, That the clause be read a Second time.
I am tempted to engage the House in a long discussion about local government finance in relation to new clause 2; however, I will try not to go on and on. The hotel levy proposed in new clause 2 has been previously proposed by Members of the House of Lords—Lord Rooker of Perry Barr and Lord Hunt of Kings Heath—and is supported by not only Birmingham City Council but, to my knowledge, a number of local authorities that have strong experience of hosting large cultural and sporting events.
Without going into too much detail about the terrible impact that austerity policies have had on local government over the past 10 years—I hope that most Members are more than well aware of that—the fact is that we in this country now have a national challenge to figure out how we can properly fund local government. Local authorities are struggling through the coronavirus crisis, having been told by the Government to do whatever it takes to fight the virus, and now the Government are falling short of their commitment to fund local authorities to do whatever it takes. That is the background and the backdrop to the situation in which we find ourselves.
Does my hon. Friend agree that, given that coronavirus is currently so job-destroying, the Government should look at this particular measure urgently?
My hon. Friend pre-empts what I am about to say. She is absolutely right, and of course as an experienced leader in local government herself, she would know more than anybody that the challenge in funding for local government has been exacerbated over the past 10 years.
We need to focus on means by which we can enable local authorities to do what they do best, which we are seeing with the work of Birmingham, Sandwell and all the boroughs across the west midlands. They know their areas best and they are able to create amazing events and opportunities that not only drive forward a city’s and a region’s economy but are a game changer in the status of a place whereby people can experience, perhaps for the first time, or the first time in a long time, what that place is like. That has incredible knock-on positives for that place.
We therefore need to concern ourselves, as a House, with opportunities to enable funding for these events. The Commonwealth games is a massive opportunity to pilot an idea that has huge support from various city leaders right across the country. The idea of applying a small levy to hotels has been discussed and investigated for quite some time now. I encourage the Minister to look seriously at this option, given the possibilities that it could create.
There are a couple of reasons why I suggest that the Minister take this seriously. The visitor economy is a growing area in our country. Until the recent coronavirus crisis, I am not sure that that was widely understood or accepted, but given the impact that the measures needed to control the virus are having on the economy, I do not think anybody would doubt it now. As a country, we rely hugely on the tourism and visitor economy, but that part of our economy must be sustainable. It takes considerable investment to get the right facilities and the right infrastructure, and to make sure that people’s experience of visiting a place is good. We need to consistently offer people a really enjoyable place to visit so that the reputation of an area grows and grows over time. That is where events like the Commonwealth games come in. They are showcase opportunities. They are a reason to visit for many thousands of people who will be excited to go to Birmingham and Sandwell. Therefore, in order to make these places sustainable, they need sources of income. That is just an economic fact of life.
With the undoubtedly positive impact of the Commonwealth games on the economy of the west midlands, we need to be sure that it is worth it to Birmingham and the wider west midlands to be hosting these games. There are measures in the Bill that require reporting by the organising committee on the impacts of the games, but we also need to be clear about how we measure the economic impact.
I hope the Minister is going to accept this suggestion, but if he does not it would be helpful if he at least offered to discuss it with the Chancellor, because surely our tourism and hospitality industry is searching for new ideas to stimulate it, and the Chancellor would welcome a chance to look at these proposals.
I thank my hon. Friend. I trust that the Minister was listening carefully and will respond to that request. In my experience, Members of Parliament who go to the Chancellor or the Treasury with requests for funding get one kind of response, and Members of Parliament who go with ideas on how to raise funds get a different kind of response, so I can only be encouraging of my hon. Friend’s suggestion. I hope the Minister will beat a path to the Treasury door, and might take with him some colleagues—perhaps my hon. Friend and some from the other place, where there are experienced leaders of local authorities who would help him to make the case. I think that would be an excellent thing to do.
I say this in all seriousness: I have a strong suspicion that people in the world of economics and finance have slightly pooh-poohed the impact of tourism and the visitor economy on the UK and the role it plays. We talk about the service sector in these broad, sweeping terms without ever really breaking down what that means, the jobs that people do and the roles they play. That is why it is important that we seek these opportunities to put the tourism and visitor economy on a sustainable and solid footing, and this idea ought to be considered as part of that.
I have been listening carefully to what the hon. Member is saying, and I am trying to understand it. Is she arguing for more tourism by taxing more people? I cannot get my head around that, so could she explain it a little better? She says, “We want more tourists to come, but when you come, we’ll tax you more.” Is that it?
On the face of it, the hon. Member makes an argument that is understandable, in that taxes might constrain economic activity. However, many years of having taxes on economic activity show that the thing we use those taxes for can also generate and sustain economic activity. I am arguing that we ought to have a stream of investment to help local authorities sustain themselves and be able to put on events like the Commonwealth games now and in the future. If he thinks that that is not necessary, I would simply invite him to discuss the matter with any leader of a large local authority in the United Kingdom.
Does my hon. Friend accept that it might help to burden-share across the region, so that local council tax payers do not have an increase in their council tax bill? If some of the funded visitors were able to pay a small amount extra on their hotel bill, that could spread the burden of this exciting international opportunity, so that not just Birmingham has to pay for this, and it can be spread a little wider.
My hon. Friend, with her experience, makes a very good argument: it is important that we spread the burden. In any case—
If Members want to make arguments against taxation, who am I to stop them?
Prior to entering the House, I was the president of the Greater Birmingham chambers of commerce—
I realised that as soon as I said it, so I appreciate that intervention.
The hon. Member has said that the coronavirus has impacted jobs. Surely an additional levy—an additional cost—impacting demand is not something that businesses in the west midlands would want.
I welcome the hon. Member to the House. He has worked in the service of a city and a region of our country that is one of the finest anywhere, so I applaud his work in that. I simply disagree with him. I am sure he is right about the situation that tourism businesses are in. The problem is that we need local authorities to be sustainable, so that they can provide the environment in which those tourism businesses can succeed.
Sometimes it helps to read the clause. If a £1 per night levy will be a significant deterrent for the hotel industry, why is such a tax in place in Austria, Germany, France, Spain, Greece—in fact, most of western Europe? Has it been a significant deterrent to hotel stays in western Europe, in my hon. Friend’s experience?
In my experience, it has not. My right hon. Friend makes an extraordinarily good point. What I think is a deterrent to the tourism industry is when local authorities cannot afford to fund the things that make events like this a success. Local authorities need the ability to make these events sustainable.
Will the shadow Minister give way?
I will in a moment. Just let me finish responding to my right hon. Friend, although the enthusiasm for debate in this place is always to be welcomed.
Local authorities need the ability to make sure that events are a success. That is what they do best, and I know that Birmingham City Council, Sandwell Council and all the other boroughs are working their fingers to the bone to make sure that in 2022 we have a games that the whole country can be massively proud of. All the new clause seeks to do is levy a very modest amount on hotel bills so that they can succeed in those efforts.
I get the point about councils needing the budget to do things, but Birmingham has proved itself to be completely useless at managing a budget. The Perry Barr bus depot will be three times over the original allotted budget. Another example is the Paradise Circus development in the city centre—all three phases of that budget were spent in the first phase. Birmingham City Council is badly managed and cannot manage a budget properly.
I am sure that that intervention would be excellent content in a party political leaflet, but it is not really the subject of the new clause in hand.
The point was made that the levy is a small amount of money, but there is an administrative cost as well. Does the hon. Lady think it right at this moment, when the hospitality industry is already struggling, to place extra burdens on it?
I am sure the hon. Lady wants to defend hotels and tourism, as I do, but I simply make the point that I made previously: local authorities are crucial to making sure that the tourism and visitor sector is successful in Birmingham and other boroughs in the west midlands, and everywhere in the country that has a significant visitor economy. The level of austerity and the funding cuts that local authorities have borne to date have been significant and are causing problems and challenges for our ability to host such events. This is a modest proposal in pursuit of the sustainability of such events.
Is my hon. Friend aware that the Birmingham Hippodrome made significant job cuts this week, that the Birmingham Rep is running a significant deficit this year, and that the Birmingham Museum and Art Gallery is also running a significant deficit? Is she also aware that a crisis in the cultural sector is breaking upon us now? Those institutions will be coming to the Secretary of State next week to ask for his help, so he has a choice: either he can find the money himself or he can support small, common-sense measures such as this.
I was not aware of the specifics, though it is no surprise to me, because I am aware of the situation in the cultural sector right across the country. My right hon. Friend knows very well that the art collection in Birmingham city is one of my favourites. It is a brilliant art collection that will do a great deal for the cultural offer alongside the Commonwealth games. It is a reason people go to Birmingham. Without funding, such things cannot be sustained, and their loss would fatally undermine the tourism offer in cities up and down our country. Again, I simply say to Government Members that this is a modest proposal. Do they think, at this point in time, that the Treasury and the Conservative Government could do with a few modest proposals to bring in a small amount of income? Might the Minister not therefore consider this seriously?
Finally, it is important that we have proper metrics and measures to assess the economic impact of these games. It could be substantial—it could be substantially positive for the economy—so will the Minister commit to discussing with me a set of metrics that we can agree on to monitor the economic impacts of the games on all the various sectors that Members on both sides of the House have discussed, so that we can make the case that cultural and sporting events do properly benefit the economy? Will he consider this fully and take seriously the question of sustainability for the tourism and visitor economy, which at the moment should be at the heart of all our concerns?
We have discussed the issue of a hotel tax at great length during the Bill’s passage, but may I first say that I completely support and appreciate the comments on the importance of the tourism sector made by the hon. Member for Wirral South (Alison McGovern) at the beginning of her speech? It has perhaps not been recognised as so important partly because of the fragmented nature of the industry, but I assure her that I consider the tourism sector to be of great importance and will be doing everything I can to support it.
The Government have always been clear that the Bill is not an appropriate vehicle for a proposal such as the hotel tax. It is not a money Bill; that would be for Her Majesty’s Treasury to bring forward. My colleagues in the Treasury have been crystal clear that any case put forward for a hotel tax would need to be fully costed, including balancing the additional burdens on businesses. In any event, were such a tax to be introduced solely for the duration of the games, it is estimated that it would raise for Birmingham City Council about £4.5 million to £5 million for the whole year. That would be only a small part of the financial contributions owed by the council and its partners to the games. The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) mentioned the £184 million contribution from Birmingham City Council, and of course central Government will contribute nearly £600 million directly.
I want to stop the Minister at that point. He mentions the relative investment of the Treasury and the city council, but surely he accepts that the resources of those two bodies are not the same. We are trying to come up with proposals to help the city council and other authorities. Will he concede that the proposal is something that should be taken forward?
I do not believe that the proposal should be taken forward for a variety of reasons. The discussion about the financials of the Commonwealth games was sorted out and agreed some time ago—and it is still agreed.
We should consider the wider context. The tourism and hospitality sector has been impacted by covid-19 and the Government are focused on doing what they can to support the sector throughout this challenging period. As my hon. Friend the Member for Dudley North (Marco Longhi) said, I cannot see how an additional tax would help. Only a few moments ago, the right hon. Member for Birmingham, Hodge Hill lectured me about the importance of £1 and what a big difference that would make. Now he tells me that it is trivial. Which is it? It would not just be £1; it would be another pound and another and another. The potential for incremental increases in that kind of taxation is dangerous.
I thank my right hon. Friend for that intervention and look forward to his contribution on Third Reading.
There should be no increase in Birmingham’s financial contribution. Although we recognise the additional pressures that local authorities are under in dealing with the covid-19 pandemic, central Government have already announced additional funding of £3.2 billion to support that.
All games partners continue to work closely together to ensure that any additional cost resulting from covid-19 can be absorbed in the current budget so as not to increase Birmingham’s financial contribution to the games, to which it has already committed without the need for a hotel tax. That close partnership and working relationship will ensure that we deliver a memorable games with lasting benefits in Birmingham and the west midlands. I therefore ask the hon. Member for Wirral South to withdraw the motion.
I thank the Minister for his comments, but as one of my hon. Friends has just pointed out, £1 is about half an hour’s parking. In the context of what we are talking about, the idea that that would massively dissuade people from a hotel stay would probably bear interrogation. However, this idea, similarly, is not going anywhere, and it is well supported across the country by civic leaders. For now, however, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Third Reading
I thank the Minister for his comments. It has been a joy to be a part of this Bill, even if only for a short time. In the main, it was ably steered through its Committee stage by my hon. Friend the Member for Hornsey and Wood Green (Catherine West), who is no longer in her place. As the Minister said, our thanks should go to her and to all the Members who took part in the Bill Committee. I particularly thank my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) and my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe), who have both made compelling contributions today, and I hope—and I wish—that the Minister will listen carefully to the points they have made. All Birmingham Members, and others from the west midlands, have contributed to the process of getting this Bill through, and we should be thankful to them, as well as to our colleagues in the other place who have brought significant expertise to producing it.
I am also thinking today of colleagues in local government, who have had a rough time over the past 10 years and are currently dealing with a challenge that is so great that I think that they are proving to be some of the best and finest public servants that we have anywhere in government. Local government should be much more recognised across Whitehall than it actually is. I am thinking particularly of those in Birmingham and in Sandwell and across the west midlands authorities who are working so hard to defeat the coronavirus outbreak as well as preparing for what will be a hopeful and happy event in a few years’ time. I am thinking of them today; they are working so very hard. We have also mentioned Coventry, which is going to be city of culture and is preparing for that. I thank the organising committee of the games, which has been kind enough to brief me in my new role, and has done so diligently and expertly.
It is easy to wonder, in the face of such events around the world, whether sport means anything. Obviously, we all know that the real answer is that it does not. In the face of people dying of a terrible virus outbreak, of course sport is highly unimportant. However, it is something that we can lose ourselves in. We can enjoy sport, and for a short time just marvel at the abilities of other human beings enjoying themselves and competing for fun against one another. It is that idea that we can lose ourselves in the enjoyment of it that I think of as we finalise this Bill’s progress through the House.
I think back to moments in my own city region, when Liverpool was European capital of culture in 2008, and the joy that that brought to our city. I think of this city, London, in 2012, and the enjoyment, renewal and sense of civic pride that the London Olympics brought. I know that, as we have said, Birmingham—and the west midlands— is a place more than capable of inspiring not just our nation but countries around the world in the celebration of human endeavour. That is what sport is really about and that is the good that it does.
That much should be obvious, but there are 2.3 billion people in the Commonwealth and that means that the games are really important as a global event that will place Birmingham and the west midlands on the world stage where they belong. Birmingham is a fantastic place. Being from Merseyside, I have high standards when it comes to the friendliness of people, their sense of humour, and the enjoyment that you feel when you get off the train in a city. Birmingham meets all those tests. There is no better feeling than getting off the train at New Street—
Yes, nearly as good as Scousers. Birmingham is a fantastic place that I am only sorry I am unable to visit at the moment. But as soon as the regulations lift and we are able to travel in a more normal way, I shall be there, with bells on. It is a diverse place. It has beautiful buildings. Its art collection, as we have mentioned, bows to no other in the quality of its works. With its theatre, and its orchestra, in every respect, it is a vital part of our cultural life in this country. I fully anticipate that in the period of the Commonwealth games people will revel in the opportunity to visit and to enjoy everything that Birmingham, Coventry and all the other places in the west midlands have to offer.
I now turn briefly back to the Bill itself. For all the sporting, civic and cultural reasons I have mentioned, this is a very important Bill and the Commonwealth games will be a truly important event. However, we must go further than that, because this is not just about the games: it is about being ambitious for people in the city region. While there are new homes being built in Perry Barr as part of the infrastructure investment that the games are bringing, and better stations and better bus routes are being created as part of them, people are truly ambitious about how we can lift up their wages, skills, and ability to create businesses and really play a full role in the economy of the west midlands and our country.
The Bill has reporting requirements in it, but I repeat to the Minister that, if he is really to ensure that the games are a success for every single person in the west midlands who is ambitious for their future, he could voluntarily go further and do more. The reporting requirements about the values of the games, the commitments on accessibility for disabled people, the promotion of sustainability, and maximising the benefits being derived from the games are good ambitions, but they are, as I said, a bit woolly. Perhaps the Minister should work with colleagues, or voluntarily go even further than the Bill requires, because people will remember the games and the good that they did for a long time. It would be a hollow promise if we were unable to really progress the economy of the west midlands.
The Minister has heard the ferocity with which many Members from Birmingham have spoken, including my right hon. Friend the Member for Birmingham, Hodge Hill, who I thought made a serious and devastating case. The Minister has heard how people feel about food banks, and the role of low wages in creating the necessity for those food banks. I would simply say to him again that the problem is not going away, and it is on all of us, including him, to try to progress a solution. Decent though the Bill’s laudable aims are, we should all want to go much further for people. Sport is one thing, but fundamentally changing people’s lives in addition is what we should really aspire to.
We meet at a time, as many Members have mentioned, that is truly challenging for our country, but hopefully the Commonwealth games come at what could be a perfect moment, in that 2022 feels near enough to be truly something to look forward to, but far enough away to ensure that the dedicated team of the organising committee, and all of us, can work together to create all the infrastructure and aspects of organisation that are needed to create a successful games.
As much as anything, the Commonwealth games should be about hope—not just hope for our country, and hope that we will deal with the current situation and improve on the challenges that we face in dealing with coronavirus, but a much greater hope that the representation of the Commonwealth games, in all the diversity of the athletes who will come to participate and the varied number of people who will come to witnesses them, and its unity can drive forward a better standard of living and an improvement for people in the west midlands and right across our country. It is about our ability to look forward in hope.