Bank Holidays in 2020

Andrew Stephenson Excerpts

Tuesday 18th June 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

May I echo your comments about the new Assistant Serjeant at Arms, Mr Deputy Speaker? I wish to start by congratulating my hon. Friend the Member for St Ives (Derek Thomas) on securing this important debate and on his interesting and informative speech, which covered everything from morris dancers to bikers. I also thank other Members for their interventions, particularly the hon. Member for Strangford (Jim Shannon), who never misses an Adjournment debate. I would be delighted to hear more about his expertise at bonfires. [Interruption.] Indeed, not in this building.

I share the views expressed in the House that VE Day is an important opportunity to reflect on the sacrifices of a generation. The Government believe it is important to commemorate the sacrifices made by our servicemen and women in the second world war on the 75th anniversary of VE Day, as we did for the 50th anniversary in 1995, when there were celebrations and street parties across the UK. My hon. Friend talked so eloquently about that.

Moving next year’s early May bank holiday to VE Day itself has been seen to be a right and fitting tribute to our heroes of the second world war. The sentiment of celebrating on VE Day itself cannot be monetised for the veterans who served in the war. The Government gratefully acknowledge the responsibilities that our country’s armed forces assume on behalf of the UK Government and our people.

[Hugh Gaffney]

While we respect the men who fought for us and gave us our freedom today, we must also remember that there is a traditional May Day. So this is not about moving it; it is about keeping both of them. Workers have a traditional May Day holiday, celebrated every year, in the exact same way as the men who went to war.

[Andrew Stephenson]

If the hon. Gentleman bears with me, I will come to address that point.

The sentiment of celebrating VE Day is something that everyone in this House would agree with. As well as marking the allies’ great victory in 1945, the bank holiday on Friday 8 May is an opportunity to pay tribute to members of the UK armed forces who have served and continue to serve our country to this day. On this historic occasion, the Government want to ensure as many people as possible have the valuable opportunity to pay a fitting tribute. This is part of a wider package of celebrations the Government have supported, including the commemorations to mark the 75th anniversary of D Day, which recently took place across the UK. The 75th anniversary of VJ Day is also a significant commemoration in its own right and will be marked appropriately.

My hon. Friend has been a consistent champion of the tourism sector, which thrives in his constituency, drawing from his own experience of running a small business. Since his election to this House, he has prioritised supporting small business owners. Having served as a district and parish councillor, he has shown a deep commitment to his local community through his work at Westminster. I recognise that the Government’s decision to move the bank holiday from Monday 4 May to Friday 8 May next year will have an impact on the impressive May Day festival in his constituency, which I believe dates back to 1573.

Tourism has driven development in my hon. Friend’s constituency over the past 150 years and is an essential part of the area’s day-to-day life, impacting significantly on the economic activity of the local community. An estimated 2,850 jobs in St Ives are supported by visitor-related spending and 42% of jobs directly depend on tourism, so I understand the importance of this sector to his local area. These celebrations will have others like them across the country, and reorganising them will be a real challenge. I hope that plans can be adapted during the next 11 months to ensure minimal disruption. I also hope that other events planned may benefit from the change; I particularly hope that the St Ives literary festival, which begins only a day after the VE Day bank holiday next year, will attract even more tourists, due to the long weekend.

As we have heard, there are additional impacts on other specific sectors and planned events throughout the country. As we are moving the bank holiday rather than creating an additional one, we anticipate that the overall cost to business will be relatively low, but I genuinely recognise that the benefits and costs will vary from area to area and from sector to sector.

[Jim Shannon]

In my intervention on the hon. Member for St Ives (Derek Thomas), I referred to the massive £200,000 cost to a calendar business. Does the Minister have an idea of how we can help to compensate that business in some way for its massive loss? That small business cannot absorb that cost.

[Andrew Stephenson]

I think I have read about that example in the newspapers. It is obviously a significant blow to that business and something that I feel is regrettable. I wish the decision could have been made in a more timely fashion and do genuinely appreciate the concerns expressed by firms throughout the country. As I shall say later in my speech, the impact on different sectors of the creation of an additional bank holiday, of which there would be even shorter notice, could have an even bigger impact on our economy and on some businesses. I appreciate some of the concerns expressed about this decision, but we need to strike a balance in our approach to the creation of additional bank holidays.

Let me reflect on some more of the points that my hon. Friend the Member for St Ives made about the importance of small business. First and foremost, we need to ensure that the decisions the Government take reflect the needs of small businesses, because small businesses are the backbone of our economy. In 2018, small and medium-sized enterprises accounted for 60% of UK private sector employment and had a combined annual turnover of £2 trillion. We try to support small businesses through my Department’s industrial strategy, and on an almost weekly basis I meet the Federation of Small Businesses and the British Chambers of Commerce to hear about their concerns and how we can best support them.

In May, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), who is responsible for small business, held the first ever small and microbusiness engagement call, to allow the Government to engage with hard-to-reach businesses. The next call will be on Monday, alongside the regularly scheduled SME advisory board meeting.

I appreciate what my hon. Friend the Member for St Ives said about the Department having a tin ear on this issue, but I reassure him that we regularly engage with businesses small, medium and large throughout the country. I have been in post for only two months, but in the past month I visited 22 businesses throughout the UK, from Kent to Derby and up to Burnley—I had to do some visits in Lancashire, Mr Deputy Speaker.

The Government are proceeding rapidly with discussions with the industry to deliver a tourism sector deal. Ten sector deals are currently part of our industrial strategy, and I very much hope that the 11th will be a tourism sector deal, which we hope to launch in the coming weeks. The deal will look to harness the opportunities that the UK has to offer and further boost our tourism sector.

My hon. Friend asked about parents having booked holidays on the date of the original bank holiday, which will now fall as a school term day. As I understand it, it is within the gift of headteachers to grant permission for children to be absent during term time, under exceptional circumstances. Given the rationale behind the moving of the bank holiday, a compelling argument could be made that the circumstances are indeed exceptional.

I accept that the decision will have a negative impact on some people, but moving the bank holiday remains a right and fitting tribute to mark such a watershed moment in our nation’s history.

[Hugh Gaffney]

Will the Minister give way?

[Andrew Stephenson]

Let me continue a little.

As my hon. Friend the Member for St Ives acknowledged, we all know the history: in Cornwall, 4,786 casualties were identified as the result of world war two, including the deaths of 54 sets of brothers and nine sets of fathers and sons. I expect that the people of St Ives will understand the importance of honouring those who served in the war, as my hon. Friend rightly said, and pay tribute to the brave people of Cornwall who served or laid down their lives in conflict.

In the light of the lateness of the decision, my hon. Friend asked the Government to create an extra bank holiday to avoid disruption. The Government regularly receive requests for additional bank and public holidays to commemorate a variety of occasions, such as cultural history and military and religious events. My ministerial colleague, the Minister for Small Business, took a House of Commons petitions debate introduced by the hon. Member for Linlithgow and East Falkirk (Martyn Day) relating to holding public holidays on religious occasions last year, in which the merit of bank holidays for important religious occasions, such as Eid and Diwali, was debated.

It is the duty of any responsible Government, however, to judge impacts on the overall economy and the economic impacts on all sectors. Although an additional bank holiday may benefit some people and some sectors—my hon. Friend made a good point about the benefit it certainly has for our pub sector—the cost to the economy of an additional bank holiday is considerable. The impact on the economy of the one-off bank holiday for the Queen’s diamond jubilee in 2012 was estimated at £1.2 billion. The cost falls heaviest on the manufacturing sector, with the burden being twice as big as that on the service sector. We need to take into account not just the fact that there are different impacts on different sectors—some gaining and others not—but the size of those impacts. The Government considered these issues carefully and it was judged that moving the bank holiday, rather than creating an additional one, is the most appropriate way on this occasion following the precedent set by the 50th anniversary.

Friday 8 May next year will be a valuable opportunity for people across the UK to take time to commemorate the historic occasion of victory in Europe and pay tribute to those who sacrificed their lives in the second world war on behalf of us all. I thank my hon. Friend for allowing me the opportunity to discuss the Government’s position on the significance of bank holidays in 2020.

Question put and agreed to.