Arts Council England: Funding

Debate between Caroline Dinenage and Andy Slaughter

Wednesday 18th January 2023 Westminster Hall

[Dame Caroline Dinenage (Gosport) (Con)]

It is a great pleasure to serve under your stewardship, Mr Bone, and I congratulate my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) on securing this important debate. I will start by talking about the very difficult period during which I was culture Minister in the Department for Digital, Culture, Media and Sport. It was throughout the whole covid period, and I did not get out much; I did not get to go to many operas, ballets or performances, but I did get to work very closely with the Arts Council.

I have to start by paying tribute to the Arts Council and to the leadership of Darren Henley and Nick Serota, who worked incredibly hard with the brilliant team at DCMS, led by Emma Squire, throughout the covid period. They were responsible for allocating a significant share of the £2 billion culture recovery fund. The recovery fund board was appointed swiftly, and ensured that vast sums of money were allocated very fairly and effectively at enormous pace and scale, which meant the difference between survival and closure for some of our most vital cultural institutions. Thanks to their remarkable diligence and deep understanding of the arts and culture ecosystem across the country, we avoided many of the issues that some other parts of Government faced when they were trying to dish out vast sums of cash.

As the responsible Minister, I can tell Members that once the money starts rolling out, we really do gird our loins about the potential negative media stories that might come down the track, but they did not come. There were some great attempts from some quarters of the media to excite people about some of our funding decisions—the wonderful drag queen Le Gateau Chocolat was exceptionally grateful for her slice of the cake—but on the whole, there was very little error in a massive piece of work that was done at pace and scale. The work of the Arts Council was a bright light during an otherwise very dark period, and I have lost count of the number of institutions up and down the country that have told me they felt they were saved by the culture recovery fund.

I do not envy the Arts Council its job. Trying to allocate limited funds is always a challenge, now more than ever, in desperate economic times and against the backdrop of a Government who are passionate about the potential of arts and culture to drive economic prosperity and levelling up to all corners of the country. Over the next few years, Arts Council England will invest £446 million per year in 990 organisations—the largest national portfolio ever, reaching more organisations than ever before. It was the most over-subscribed round ever, with 1,723 applications; if all of those applications had been successful, the investment would have been over £2 billion.

Among the 990 successful applications were 276 new organisations. One of those is the Hampshire Cultural Trust, which will now receive £500,000 a year. It is the first time that it has been a national portfolio organisation, and I see what a tangible impact it has on my Gosport constituency, which is an area with deep pockets of deprivation and has been long underfunded by successive Governments.

Our heritage is one of our secret weapons, but, up until now, we have not been able to harness its potential to drive investment, build communities, create opportunities and promote excellence. The newly reopened museum and gallery has been reimagined as a cultural hub, breathing new life into our high streets. The money will allow them to animate already outstanding heritage spaces and organise community-based festivals and events. It is making a difference on the ground and it will continue to do so.

The UK’s cultural sector is among the best in the world: I would say that it is the best. It represents 12% of our service exports, and its potential for our soft power is so often undervalued and underestimated. We have a huge responsibility. The Arts Council has a huge responsibility to ensure that we continue to nurture and grow it.

Culture has the power to drive forward regional economies, build communities and improve health and wellbeing. Arts Council funding has historically been focused on London and we need to ensure that culture is thriving in every pocket of England, but we will not level up the rest of the country by levelling down London. We need to harness the potential of the great cultural powerhouses of London. We must spread their tentacles and sprinkle a bit of their magic across the country in the same way as some of our museums and galleries have driven footfall.

Recently, Dippy the dinosaur went on a tour. It went to the Tank Museum in Bovington. It popped up in the nave of Norwich Cathedral, reaching a whole new audience and inspiring a new generation. The ENO has done exactly the same thing with ENO Breathe, which is its wonderful, game-changing response to covid. It is operating in 85 trusts across the country, including my own. There were some bizarre and ill-judged decisions in this funding round and I think we can all agree that the decision to both relocate the ENO and cut its funding was an ill-judged one. I am pleased that there has now been some movement on that, but there is more to do to secure its future.

[Andy Slaughter]

I entirely agree with what the hon. Lady has said about the ENO, but it is a one-year reprieve. After that, what it pointedly said is that it wants to

“continue to make incredible opera available for everyone, in English, with hugely subsidised tickets, completely free for Under 21s and with 10% of all seats available for £10”.

It is working in schools and hospitals as well. That will be gone in a year’s time and, over the next three years, it will lose over 400,000 people seeing opera in that way. Surely that cannot be right.

[Dame Caroline Dinenage]

That is absolutely the point. The ENO not only plays a huge role in the cultural status of London around the world, but the work that it has done to attract a whole new audience and to make opera accessible to all is nothing short of remarkable. I was lucky enough to attend what they call a “relaxed performance” of “It’s a Wonderful Life” just before Christmas. The place was packed with children, people with disabilities and neurodiverse people. It was just incredible to see opera being accessible to so many and building the audiences of the future.

I agree with the idea of devolving money outside of the capital, but we cannot do it by destroying some of the great cultural institutions that do so much and put us on the map. We must avoid these token gestures. We must also be aware of the regional ecosystems that are already well developed outside London before we start transplanting existing organisations out of London.

The Arts Council was born out of world war two. Here we are again, with the global aftermath of covid and a war, once again, on the edge of Europe. The Arts Council has, once again, a unique opportunity to support the innovation, creativity and resilience that make our cultural industries our British superpower. I hope that we can all work together with them to enable them to harness that opportunity.

Oral Answers to Questions

Debate between Caroline Dinenage and Andy Slaughter

Tuesday 26th April 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Women and Equalities and Family Justice (Caroline Dinenage)]

Yes, the Government are absolutely committed to supporting all vulnerable and intimidated witnesses, especially those who have been subjected to domestic abuse, to help them to give the best possible evidence so that offenders can be brought to justice. That is why we have put measures in place including, as I said earlier, the ability to give evidence while screened from the accused in the courtroom, by live video link from a separate room within the court building or from a location away from the court building altogether. Our changes to the courts will only help this.

[Andy Slaughter (Hammersmith) (Lab)]

In a year of saying little and doing less on his flagship manifesto policy of repealing the Human Rights Act, the one thing that the Lord Chancellor has made clear is his position on the European convention on human rights. To quote his official spokesman in February,

“Our plans”—

not “our current plans”—

“do not involve leaving the convention”.

We now know that the Home Secretary said yesterday that we should leave the ECHR regardless of the result of the EU referendum. So who is right on this? What is today’s policy, and who is in charge of justice policy? It does not seem to be the Lord Chancellor.

West London Coroner’s Court

Debate between Caroline Dinenage and Andy Slaughter

Wednesday 16th December 2015 Westminster Hall

[Andy Slaughter]

The West London coroner is not here to defend himself, so I will cite the case of James Rodriguez that I mentioned earlier. The post mortem was carried out on 30 April. By the coroner’s own admission, five months later they had not chased up the results, and he says now to the bereaved relatives, who have no death certificate at this stage, nine months later,

“I will not guess at this stage”

when that will happen. That is not in dispute, and that is the level of service we are dealing with.

[Caroline Dinenage]

I am grateful to the hon. Gentleman for bringing that to my attention. I am absolutely clear that the needs of bereaved people should be at the very centre of all coroners’ services. That was supposed to be the main aim of the coroner reforms that we implemented in July 2013.

The West London coroner’s office in Fulham is very busy. It covers a large geographical area, as we know. In 2014 the office received 3,437 reports of deaths and 383 inquests were held. However, that is no excuse for poor, inefficient, rude and insensitive services, or, in some cases, a lack of communication, particularly at such a difficult time when people are grieving. My hon. Friend the Member for Kingston and Surbiton is not the only Member whose constituents have been unhappy with the level of service they have received from the West London coroner’s office, particularly with regard to the responsiveness of the office. Several Members have written to me detailing individual cases of constituents who have encountered delays, lack of engagement and rudeness from the coroner’s office, and other Members have raised that today.

My officials and the Chief Coroner’s office have also been alerted to problems. These include bereaved families not being able to access death certificates in a timely manner; delays in holding inquests, which is particularly stressful for bereaved families when they are already going through a very upsetting time; and not having staff at the end of the phone to deal with queries and concerns when they are needed. I understand that a number of complaints have also been lodged with the London Borough of Hammersmith and Fulham and that my hon. Friend the Member for Kingston and Surbiton has written to the council’s chief executive on this matter as well.

Earlier this year, the Chief Coroner went to Fulham to visit the senior coroner and his staff. Along with him were representatives from the local authority, which provides the funding and infrastructure for the local coroner service, and also representatives from the Metropolitan police, which provide the coroner’s officers, who are the front-line staff who deal with bereaved people. The senior coroner, the local authority and the police all have a role to play in improving the service. They discussed the issues together and looked at ways to resolve them, and an action plan was agreed. I am pleased to note that, as a result, we are beginning to see signs of a more positive picture emerging from west London. The office has reached its full complement of administrative and investigative staff, including a coroner’s officer manager and six new coroner’s officers. There is now a new way of managing the telephone system so that administrative officers deal with all phone calls in the first instance to relieve the burden on the coroner’s officers, thereby allowing them to focus on progressing cases. However, I take on board the recent instances that the hon. Member for Ealing North has raised about his own experiences with the telephone service. I have made a note of them and my officials will certainly deal with that, because that is not acceptable.

Members will be pleased to hear that west London has now reduced the backlog that it inherited. The senior coroner inherited 400 outstanding inquests when he took up post. That has now been reduced to 70 cases and it is anticipated that these final historic cases will be cleared by the end of February, which will allow staff to focus fully on new cases. The senior coroner has attempted to clear the backlog by making sure there are two courts running in parallel with his assistant coroners hearing cases alongside him.

As the Minister with the coroners portfolio, I share the wish of all Members in the Chamber to resolve matters as quickly as possible. As they have already articulated, the process is not straightforward. The Ministry of Justice has overall responsibility for coroner policy and law, but the responsibility for the delivery and funding of coroner services is a local matter for the appropriate local authority, in this case the London Borough of Hammersmith and Fulham. It is for it to decide how to run and fund the coroner services.

Personal Injury Fraud

Debate between Caroline Dinenage and Andy Slaughter

Wednesday 18th November 2015 Westminster Hall

[The Parliamentary Under-Secretary of State for Women and Equalities and Family Justice (Caroline Dinenage)]

May I say what a delight it is to serve under your chairmanship, Mr Wilson? I add my praise to that already heaped on my hon. Friend the Member for Lincoln (Karl MᶜCartney) for securing this important debate on personal injury fraud and its impact on individuals and motor insurance premiums. He has been a dedicated and tenacious campaigner on this important issue.

I will state at the beginning that I am not the Minister with responsibility for this matter in the Ministry of Justice. That honour falls to my colleague, Lord Faulks. I will of course make sure that all the points made today that I am unable to cover are responded to by my noble and learned Friend, and that he is well aware of all the suggestions made by hon. Members from across the House.

My hon. Friend the Member for Lincoln has a number of concerns about personal injury fraud and nuisance calls in particular, which both he and my hon. Friend the Member for Croydon South (Chris Philp) mentioned. Those pernicious calls cause annoyance and distress to many people, particularly the elderly and vulnerable. I will address that in due course. First, I would like to say a few words about some of the measures and initiatives introduced by this and the previous coalition Government.

We have been, and continue to be, committed to tackling the problems in this market. There have been some real challenges for the Government in trying to put right the imbalances that have led to the disproportionate growth in personal injury claims. We know, as many Members have articulated, that reported road traffic accidents fell from approximately 190,000 in 2006 to about 140,000 in 2013, when the previous Government began to introduce their reforms. That is a reduction of more than 20%, yet at the same time the number of road traffic personal injury claims rose from about 520,000 in 2006 to 760,000 last year—an increase of about 50%. That is a clear indication, if one was needed, that there is a problem and that the Government should consider further reforms to combat this distasteful culture, which we believe is in part being driven by the constant barrage of phone calls and texts messages that my hon. Friend the Member for Croydon South so powerfully described.

The Government accept that many personal injury claims are genuine, but it is also clear that many speculative, exaggerated and fraudulent claims are being made. Sometimes it is difficult to tell the difference between the two, but it is not right that people who try to cheat the system should be allowed to get away with it and, as so many Members have said, thereby force up the price of motor insurance for honest, law-abiding motorists. There are considerable costs in dealing with such claims, which have a significant impact on the cost of premiums. According to the ABI, the annual cost to the industry from whiplash claims is £2 billion, which, as has been said, adds some £90 to the average motor insurance premium.

I will pause there and go back in time to set the scene. My hon. Friend the Member for Lincoln is a long-standing member of the Select Committee on Transport and he will be aware that just over five years have passed since Lord Justice Jackson published his review of the cost of civil litigation. That may seem quite a long time ago now, but the previous Government and this one have been busy ever since with a substantial programme of reform.

The Jackson reforms, introduced through the implementation of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, were a key achievement in addressing bad behaviours in the personal injury sector. The reforms introduced a ban on the referral fees that many lawyers, solicitors and claims management companies used to buy and sell claims. We agreed that the system of no win, no fee arrangements was not fit for purpose—that, in fact, it had the perverse effect of encouraging litigation—and so reformed the system to return balance to it, making sure that costs were no longer all heaped on defendants and that claimants had a financial stake in their claim. Our reforms were explicitly aimed at controlling costs and discouraging unmeritorious claims, while enabling genuine cases to be pursued, although of course at lower cost than before, which is why we also put in place measures to encourage earlier settlement.

Speculative and unnecessary whiplash claims are some of the most unmeritorious of all claims, as many Members mentioned. Following a Downing Street summit in February 2012, the Government committed to introducing reforms to tackle the number and cost of whiplash claims. In response to that commitment, the Ministry of Justice has worked with stakeholders to produce a wide-ranging set of reforms to introduce much-needed independence to, and improve the quality of, the medical evidence used in such cases.

[Andy Slaughter]

The Minister has mentioned the notorious insurers’ summit, when the Prime Minister invited the major insurance companies to 10 Downing Street, but no one representing the claimants’ side. Does she think that that might have been a mistake? Does she agree that the Government should listen to both claimants and defendants?

[Caroline Dinenage]

We can dwell on the past, but the hon. Gentleman is absolutely right that we need to listen to all sides in the argument. As the hon. Member for Strangford (Jim Shannon) pointed out, important steps have since been taken on medical reports. The first phase of the reforms included measures to reduce and fix the cost of initial whiplash medical reports at £180, to allow defendants to give their account to the expert for the first time, to discourage insurers from making pre-medical offers to settle, and to ban experts who write the medical reports from also treating the claimant.

[Andy Slaughter]

I am sorry to interrupt the Minister, but she is tempting me. She just mentioned third-party capture, but if the Government really want to stop it, why should it not be banned? I think she is about to mention MedCo. That has been a disaster, which is why we are having a full review only a few months after its introduction.

[Caroline Dinenage]

If the hon. Gentleman will hold his horses for just a moment, I will move on to some of those issues. MedCo has introduced a robust new accreditation scheme for medical experts, who need to attain accreditation by 2016 or they will be removed from the system. We hope that that will begin to take effect, but a further reform to control fraudulent claims at source was implemented on 1 June 2015, as he will know. Claimant lawyers were given access to insurance industry data and must now check the number of claims their potential client has made before accepting the claim.

The Government are particularly pleased that stakeholders put aside their differences to develop a consensus on sharing data and improving medical evidence. Such a consensus can only be positive for all involved and we look forward to continuing to work closely with stakeholders. The Government have also taken firm action to ban both lawyers and claims management companies from offering claimants inducements to bring frivolous claims. Although it is still early days in terms of monitoring the impact of the reforms, Government figures show that the number of whiplash claims has gone down by around 70,000 since 2011-12. That is a good start, but we remain concerned about the number of claims made and their impact on the cost of motor insurance premiums. Too many claims are still being brought inappropriately, often because people are encouraged and pressured to do so by unscrupulous lawyers or CMCs.

On 2 December 2014, the Chancellor of the Exchequer and the then Justice Secretary jointly announced a new insurance fraud taskforce. The taskforce will make recommendations to reduce all types of insurance fraud, to lower costs and to protect the interests of consumers. The Government are committed to tackling the perception that insurance fraud is a victimless crime. It is vital that people understand that making a fraudulent claim is not a legitimate way to make money. The taskforce is currently considering its recommendations, which the Government will consider carefully with a view to taking firm action.

My hon. Friend the Member for Lincoln mentioned the practice of “cash for crash”. The insurance fraud enforcement department is a City of London Police unit set up to tackle insurance fraud nationally. The £3 million annual cost of the unit is funded by ABI members through an industry-led compulsory levy. The unit is leading the fight against “cash for crash” gangs, and has caught and prosecuted many perpetrators of that distasteful scam over the past three years. It will continue in that work.

The Government have also been serious in our commitment to driving out bad practices by claims management companies, as is clearly demonstrated by the recent package of reforms to protect consumers who use the services of a CMC or who are subjected to its marketing practices. The reforms will also help organisations that are on the receiving end of high volumes of calls or fraudulent or unsubstantiated claims. The measures are transforming how the MOJ’s claims management regulation unit does its job. Members will be interested to hear that in the last year, 93 CMCs were investigated, 105 CMCs had their licences removed, 296 were issued warnings and 454 audits were conducted. Tackling fraud and unauthorised activity in the claims management industry has been, and will remain, a key priority for this Government.

The CMR unit works closely in partnership with both industry fraud bodies and the police to identify and deal with CMCs engaged in insurance fraud. That work has been instrumental in the successful prosecution of criminal organisations. My hon. Friend the Member for Lincoln rightly identified nuisance calls as a well known route for spurious claims farming. The CMR unit makes sure that CMCs offering claims services do so legally. That is why we introduced tough new rules in October last year to put in place a stronger requirement to make sure claims are properly substantiated before being pursued.

We also strengthened the CMR unit’s enforcement tools in December last year with a new power to impose fines on CMCs. So far, three companies have been fined more than £800,000 for unlawful unsolicited marketing and coercing clients into signing contracts before taking unauthorised payments. That sends the powerful message to unscrupulous fraudsters that the Government take this issue seriously and will take firm action against them.

The claims industry is a fast-moving market. Practices continue to evolve, and the Government will monitor the market and respond with further reforms, as necessary, to provide better protection for consumers and the public. The Government are also looking to build on the work of the CMR unit by undertaking a fundamental review to consider what powers and resources are required for a tougher CMC regulatory regime. The review is due to be completed in early 2016.

I will now answer the very useful six points raised by my hon. Friend the Member for Croydon South, as some of them will be included in that review. He talked about banning of outbound calling and the use of personal injury claims data gathered from those calls. We need to strike a balance between ensuring that consumers are adequately protected and ensuring that a direct marketing industry can continue, as—although this was not necessarily the case in his experience—it is a legitimate activity when done properly. We need to focus on the companies that are breaking the rules rather than penalise legitimate businesses, and to make sure that companies comply with the regulations. We have made it easier for the Financial Conduct Authority to take action against some of those companies, but we will continue to look at that, particularly in the light of what he has outlined today.

[Caroline Dinenage]

My hon. Friend is very persuasive, and I will definitely ensure his thoughts are passed on when the review is conducted.

My hon. Friend talked about criminal pursuit of anyone making fraudulent claims. That measure was introduced earlier this year in the Criminal Justice and Courts Act 2015, which requires the court to dismiss in its entirety any claim where the claimant has been fundamentally dishonest. That means dishonest claimants can now no longer receive a payout if they have been fundamentally dishonest, even if a small part of their claim is in fact genuine. Insurers then have the option of pursuing a criminal prosecution for fraud.

My hon. Friend said medical advice should be taken within a week of an accident. In 2004, the Government considered including such changes to the civil procedure rules to ensure that medical examinations and reports were completed before a claim was produced. We have introduced the rules I have spoken about to discourage such behaviour, but we will keep the matter under review and continue to work with key stakeholders. We need to look at how we can tackle the issue effectively.

My hon. Friend asked whether there should be an objective evidence base. The Government remain concerned about the number of claims made and have done much in that area, but we accept that more can be done. We are open to any suggestions put forward by interested stakeholders and will consider all the points he has raised.

Finally, my hon. Friend talked about the 12-month claim limit and the no win, no fee limit of £6,000. We understand that both those issues will be considered by the insurance fraud taskforce, which will be reporting shortly. We look forward to seeing its recommendations and will respond accordingly.

[Andy Slaughter]

The Minister talked about a £6,000 limit. If she is talking about the possible £5,000 limit for small claims in PI cases, the Government have already looked at that two or three times. They have had very strong advice, including from the Transport Committee, that that is not the way to go. Is she saying that that matter is going to be revived?

[Caroline Dinenage]

As I say, the taskforce has been set up to look at all the issues, and I believe it may be considering that limit, but I will write to the hon. Gentleman with clarification if that is not correct.

The Chancellor announced proposals in the July Budget to introduce a cap on the charges that CMCs can apply to consumers. We are looking in particular at restricting bulk PPI claims to more proportionate levels and will consult on how that will work in practice later this year. A cap on charges will, we believe, help to reduce incentives for CMCs to collect marketing leads, resulting in a reduction in the number of speculative calls made.

I would like to draw Members’ attention briefly to other measures taken by the Government to tackle the issue of nuisance calls. In March 2014, the Government launched an action plan to tackle the problem, asking the consumer organisation Which? to lead a taskforce on consent and lead generation in the direct marketing industry. The taskforce made a number of recommendations, including giving the Information Commissioner’s Office powers to hold to account senior executives who fail to comply with the rules on marketing. The Government are currently considering those recommendations.

The Government have made it clear that it must be easier for the ICO to take action. The ICO no longer has to prove substantial damage or substantial distress caused by a company before action can be taken. Since 2011, it has had the power to issue penalty notices of up to £500,000, and in September 2015 it issued a penalty of £200,000 against a company that made more than 6 million automated calls to consumers—the highest penalty ever issued for nuisance calls. The ICO has also issued a penalty of £75,000 against an organisation that claimed to offer a nuisance call blocking service but was instead making unsolicited live marketing calls to members of the public—the mind boggles. The ICO continues to take its enforcement responsibilities seriously and has 66 cases currently under investigation.

The Government are also exploring options to provide call-blocking devices to vulnerable customers, and we will consult shortly on legislation to require all direct marketing callers to identify themselves. That will enable consumers to determine who is calling and to report unwanted calls to the regulator. I ought to make it clear that the Government have not ruled out further reform to this market.