Birmingham Commonwealth Games Bill [Lords]

Debate between Catherine West and Alison McGovern

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

[Alison McGovern]

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.

[Catherine West]

Does my hon. Friend agree that, given that coronavirus is currently so job-destroying, the Government should look at this particular measure urgently?

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[Alison McGovern]

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.

[Catherine West]

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.

[Alison McGovern]

My hon. Friend, with her experience, makes a very good argument: it is important that we spread the burden. In any case—