Birmingham Commonwealth Games Bill [Lords]

Debate between Andrew Mitchell and Nigel Huddleston

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Thursday 11th June 2020 Commons Chamber

[Nigel Huddleston]

I will come on to the financial contributions in a moment.

The new clause would or could inadvertently discourage people from staying overnight in Birmingham and the west midlands at games time—the very time we want to welcome the world to the west midlands and when the region is doing whatever it can to increase visitors and the opportunities generated by the games. On top of that, even though we do not charge a tourism tax in the UK, we charge full VAT on hotel stays, which many other countries do not. Many other countries do not charge full VAT rates on hospitality and leisure.

Furthermore, local authorities have a range of existing revenue-raising and fundraising powers that they could explore to support them to meet financial contributions that are associated with events such as the Commonwealth games. Most important, the council has always been clear that it can and will deliver its financial commitments to the games without the need for a hotel tax. As ever, we remain in close contact with the council on all aspects of the games, including the budget. It is also worth noting that early analysis of the financial impact of covid-19 has demonstrated that the additional costs arising from the pandemic can be met from the existing games budget.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

Thanks to the miracle of modern technology, I have managed to elicit a direct response from the fabulous Mayor of the West Midlands to the suggestion that there is a black hole in his budget. Rather than test your patience with a long intervention, Madam Deputy Speaker, I shall reserve his comments for the House if I catch your eye on Third Reading.

[Nigel Huddleston]

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.

Birmingham Commonwealth Games Bill [Lords]

Debate between Andrew Mitchell and Nigel Huddleston

2nd reading & 2nd reading: House of Commons
Monday 9th March 2020 Commons Chamber

[Nigel Huddleston]

I thank the Chair of the Digital, Culture, Media and Sport Committee for those comments. He is aware that we are having these games in record time—considerably shorter than the usual seven years—but we are conscious of that in terms of cost containment, because we are not building new facilities from scratch, or not all of them, and that has helped with the finances.

All the stakeholders and all the partners are well aware of their financial responsibilities, and we are working with them. I shall address some of the transport concerns and the flyover issues later, but again we are working with all the partners involved to make sure we can come to a suitable outcome.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I thank my hon. Friend very much for giving way on what I think is his first outing at the Dispatch Box, which is already going extremely well. As he would imagine, we are very much looking forward to the games coming to the royal town of Sutton Coldfield, and in particular to the appearance of part of them in the Royal Sutton park.

May I, however, emphasise the importance of the point made by our hon. Friend the Chairman of the Select Committee? The Government, the Mayor and the West Midlands authority have been generous and very supportive on the financial side. While I do have some sympathy with Birmingham City Council, it is essential that my hon. Friend, on behalf of the Government, makes it absolutely clear that it must show greater financial control.

A particular example has been mentioned by our hon. Friend, but there are other worries to do with contingency funding. Obviously, I expect the Government to be generous and supportive, but Birmingham City Council must show financial rigour, which has not been a feature of that council. If it does not do so, I hope the Minister will make it clear that the Government will not tolerate any question of failure in these games, and that Birmingham City Council will be removed from the management of them if it does not demonstrate such control.

[Nigel Huddleston]

I thank my right hon. Friend for his comments. I can assure him—I will come to this later in my speech—that the financial governance of the games is very strong. Again, we are working with all stakeholders to make sure that we can deliver on time and on budget—both on the time commitment and on the financial commitment.

--- Later in debate ---

[Nigel Huddleston]

I thank my hon. Friend for those comments. She hits on a very important part of the games’ purpose, its legacy, and indeed, the Government’s sport strategy. We will be working much more on the issues that she raises to encourage more young people to participate in sport at the right level. The Youth Sport Trust and many other bodies play a key role in delivering that, as do our schools. Those of us who are parents have a responsibility too, but the games are a key chance to make sure that we double down on those opportunities and inspire young children to get involved in sport at a very early age, with the huge mental health and physical health benefits that come with that.

[Mr Mitchell]

Inspired by my hon. Friend the Member for Brecon and Radnorshire (Fay Jones), I thought I would rise to my feet again. Before the Minister finishes, will he say a word or two more about the issue of legacy, which is so important? I had the privilege of sitting on Lord Seb Coe’s International Inspiration, which took forward the legacy from the Olympic games in London. Will he confirm that legacy is about international, national and local objectives and that it is a very high priority for the Government to build on Britain’s experience under Lord Coe’s leadership?

[Nigel Huddleston]

Legacy planning is already taking place. There is already a team within the organising committee focused on legacy, not just the physical legacy, important though that is—the physical assets, the new sports facilities, the new village and homes—but the long-lasting legacy in terms of inspiring people to travel and invest in the west midlands. The tourism, trade and investment opportunities will be a core part of this. We have learned the lessons, both the positive lessons and where we can improve, of the Olympic games and the games in Glasgow, and I am confident that we will continue to make those very important legacy decisions.