Birmingham Commonwealth Games Bill [Lords]

Gary Sambrook Excerpts

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

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

It is a great pleasure to open this important debate for the Labour party. It feels particularly apt to be debating the Commonwealth games on Commonwealth Day. Today we mark the strength and diversity of the Commonwealth while recognising the substantial challenges still facing people in many parts of the Commonwealth. While it is a shame the Secretary of State is not in his place this afternoon, I congratulate his understudy on his fine performance so far.

In what I hope is a sign of things to come, the Opposition agree with much of the Bill. We agree across the House that the games offer an enormous opportunity to the west midlands, but the House must ensure that the games organisers make the most of those vast opportunities. That is what we are here to debate today. I hope to take up the Minister’s offer and to visit the sites ahead of the games, perhaps with my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), if the people of the west midlands are sensible and put their faith in him to be their Mayor later this year. I hope to see for myself a bigger and bolstered Alexander stadium, the new aquatics centre in Sandwell and the countless other stadiums and venues that will be the envy of many nations.

I look forward to athletes competing in just over two years, hopefully winning an impressive haul of medals for all the home nations. As many will attest, the games have the potential to transform communities in the way the Olympics did for London. The new athletes village in Perry Barr, with the associated transport improvements and investment in public services, will provide good-quality homes for thousands of residents and create a new community in the heart of the city. I recognise that the Bill is a vital part of ensuring the fair and proper organisation of the Commonwealth games in 2022 in Birmingham and a step towards the games delivering for the people of the west midlands.

I particularly welcome the steps in the Bill to prevent ticket touting. All Members will agree that the games should be open and accessible to as many members of the public as possible. Strong steps to prevent exploitative and unfair ticket touting are needed to avoid the scenes that we have witnessed during other sporting events in recent years, and to guarantee that the people of the west midlands can have a fair chance to enjoy the sport on offer.

I am, however, disappointed that the Government have not used the opportunity presented by the Bill to ensure that Birmingham 2022 is truly game-changing for the region—the opportunity to showcase the truly transformational potential of the games. In that regard, they could go further. I know that the organising committee has done good work to be an inclusive and progressive employer, but more could still be done. The west midlands has one of the lowest levels of living wage accreditation among the UK regions, and the Bill could have given the Government the ideal opportunity to set down a marker by ensuring that the committee followed the lead of Labour-run Birmingham City Council and became living wage-accredited. Not only would that have helped so many who are directly involved in the delivery of the games, but it would have served as an example of good employment practice for businesses across the region, and become a catalyst for further improvement in the income and living conditions of people throughout the west midlands.

Sadly, the Bill also contains no provision to bar gambling companies from sponsoring the games. Although I know it is unlikely that the organising committee will enter into an agreement with a gambling company, I firmly believe that the Government should declare that as a matter of principle. We know that too many children and young people in the UK are already addicted to gambling, and we need to ensure that the Bill will protect them. A specific pledge preventing any form of official gambling support might just make those companies understand our concern about how best to protect casual gamblers who enjoy a flutter so that their enjoyment does not slide into destructive gambling addiction.

On a similar note, the Bill could have gone further to ease the financial pressures on Birmingham City Council, about which we have already heard. It could have opened up further funding streams so that the council would not have to face difficult choices when considering sponsors and partners.

It is fantastic that so many additional tourists are expected to visit Birmingham, but a hotel levy of £1 per room per night would go some way towards raising the additional revenue needed to fund the successful delivery of the games, and easing the pressure on council taxpayers. Such levies work in many cities across the world; why should they not work in Birmingham? The leader of the city council, Ian Ward, has been vocal in calling for this for some time. I urge the Minister to reconsider, and to add that provision for a hotel levy.

I should also like the Minister to give further assurances about the climate change impact of the games. I know that both the council and the organising committee are going to great lengths to showcase sustainable aspects of the games, and I welcome the council’s commitment to sustainable transport improvements in the athletes’ village.

[Gary Sambrook (Birmingham, Northfield) (Con)]

Does the hon. Lady accept that, while the council is trying to ensure sustainability for the games, it has voted to build on 8 hectares of parkland every year within the city boundaries? Will she condemn that blatant hypocrisy?

[Tracy Brabin]

I appreciate the hon. Gentleman’s intervention, and I am sure that his constituents have heard what he has said, but my understanding from my right hon. Friend the Member for Birmingham, Hodge Hill is that 51,000 homes need to be built, primarily on brownfield sites. Birmingham’s planning conditions and responsibilities are not my area of expertise, but if the hon. Gentleman wants to take the matter further, I am sure that my right hon. Friend will discuss it with him outside the Chamber.

We need to do more to tackle the climate emergency that we all face. All the expert advice suggests that we have about 10 years in which to prevent it from getting out of hand, and this is the Government’s opportunity to showcase a lead in that very respect. Before, during and after the games, we can show that we are serious about the need to take action, and to do all that we can to have a sustainable and environmentally friendly games. Birmingham cannot achieve that on its own.

--- Later in debate ---

[Gary Sambrook (Birmingham, Northfield) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, as I still serve as a Birmingham City councillor. I echo the words of the hon. Member for Birmingham, Perry Barr (Mr Mahmood) about the late Councillor Keith Linnecor, whom I have known since I was 15; he was a good guy, a stalwart of local politics in Birmingham, and will be sorely missed. I saw a picture on Twitter earlier of some flowers at his funeral with woolly hedgehogs on them. He would have loved that as he had a nigh on obsession with hedgehogs. I also congratulate those hon. Members who made their maiden speeches today, the hon. Member for Stockport (Navendu Mishra) and my hon. Friends the Members for East Devon (Simon Jupp) and for Redcar (Jacob Young); they were excellent first contributions, and I look forward to many more to come.

I am proud that the Commonwealth games are coming to my home city of Birmingham, the city where I have lived my entire life, and I recognise the enormous positive contribution they will make to the city for years to come, in terms of jobs and skills, housing and health—I personally hope to benefit from the latter in the coming years—but I have huge concerns about the athletes village, which is the element of the games that is solely the responsibility of Birmingham City Council. I know the area fairly well as I went to university there. It is the site of the old Birmingham City University. It has now been flattened. When the games were touted a couple of years ago, the leader of the city council, Councillor Ian Ward, in order to get the idea through his own group, said in a crunch meeting that it would have no impact on the revenue budget of the city council. Unfortunately, we now find that it will have an impact of £2 million a year for the next 40 years—and that is before the new business model is released tonight, in time for next week’s cabinet meeting. I urge the Minister to look closely at this when it is published, as it is important that the council leader and the council keep their word and that services on the frontline are not disrupted by their financial mismanagement of the athletes village in Perry Barr. Some 93% of the construction budget has already been allotted to only 72% of the bed spaces, and that is before a single brick has been laid. I have huge concerns about this. Also, just next door is the former National Express depot. In the original budget, the cost of moving it just a couple of hundred yards down the road was put at £2 million. Thanks to the council’s mismanagement, that has spiralled to £15 million.

An equally controversial element of the games in the city at the moment is the removal of the Perry Barr flyover, at a cost of £27 million.

[Nicola Richards (West Bromwich East) (Con)]

Does my hon. Friend agree that Birmingham City Council should listen to residents from across the west midlands, including mine in West Bromwich East, who know that the demolition of the flyover will cause nothing but chaos in the area and that this is not the legacy we want in Great Barr from the Commonwealth games?

[Gary Sambrook]

That is perfectly true. It will have a huge impact and ripple effect in the local area. The council needs to listen to local people, including the 15,000 people from Birmingham alone who have signed a petition, and those in neighbouring authorities who have also complained to the council that it will have an adverse impact on transport.

[Mr Steve Baker (Wycombe) (Con)]

My hon. Friend, who is making a powerful speech, mentions neighbouring authorities and transport. Wycombe lies between London and Heathrow and Birmingham, and I am slightly concerned that the powers in clause 26 to put in place temporary prohibitions or restrictions on roads are drawn very widely. Would he join me in inviting the Minister to say that there are no plans to restrict the M40 between London and Birmingham? We would not want any unintended costs to fall upon the people of Wycombe, who like me, I am sure, are looking forward to watching the games.

[Gary Sambrook]

I was worried for a moment that my hon. Friend was about to quiz me on my knowledge of clause 26—I was starting to panic—but I am sure the Minister will have heard his intervention.

As well as the neighbouring local authorities, Highways England has also complained about the impact the removal will have on local people. This is not just a party political point, or opposition for opposition’s sake; as proven by the comments of the hon. Member for Birmingham, Perry Barr, this is a cross-party issue that is really impacting on Birmingham. It is literally the only source of negative publicity around the games and unfortunately the only bit that is wholly the responsibility of the city council.

I am also concerned that the village will not provide enough social and affordable housing locally. The last figure I heard was that only 4% of the housing on the site was to be social housing, which was six percentage points lower than the 10%—

[Liam Byrne]

I think the latest figure is 22%, not 4%.

[Gary Sambrook]

I thank the right hon. Gentleman—I will have a look afterwards. A couple of months ago, the figure was only 4%, but I will have a look at that.

[Liam Byrne]

Keep up.

[Gary Sambrook]

I will do.

In conclusion, we need to ensure that the legacy of the games in Birmingham includes that ripple effect of regeneration around the city as far south as my own constituency and provides the jobs and skills we desperately need. Let us hope that the legacy does not include 40 years of debt for the city council because unfortunately it has been unable to manage a budget yet again.

Birmingham Commonwealth Games Bill [Lords]

Gary Sambrook Excerpts

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

[Alison McGovern]

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.

[Gary Sambrook (Birmingham, Northfield) (Con)]

Will the shadow Minister give way?

[Alison McGovern]

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.

[Gary Sambrook]

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.

--- Later in debate ---

[Liam Byrne]

I, too, wish to speak in support of new clause 2; we would be content this afternoon with a commitment from the Minister that he will explore this proposal with the Chancellor in the spending review, which we know is forthcoming.

I shall give some numbers, because I think they will help this debate. The total cost of the Commonwealth games is about £778 million, about three quarters of which is being provided by Her Majesty’s Government. Some £184 million is coming from Birmingham City Council and its partners, with £25 million going towards the Alexander stadium from the combined authority, plus a further £165 million going to kick-start the housing development, including the athletes’ village, from the combined authority.

I say that because the Minister will be aware of two significant risks to the local contribution, which makes up about a quarter of the budget. First, there is a risk to the local government contribution. At the beginning of the coronavirus crisis, the Prime Minister and the Cabinet said to local authorities up and down the land, “Do whatever it takes to get through this crisis, keep the receipts and we will pay you back on the other side.” The House will be amazed to learn that the deal is now beginning to unravel and the Minister’s Cabinet colleague in the Ministry of Housing, Communities and Local Government is beginning to query whether all the bills will be paid. In a city such as Birmingham, that means we could be confronting a deficit of £164 million this year. That is why the Minister has an obligation to take steps now to de-risk the local contribution to the games.

It is not just Birmingham City Council that is in jeopardy; the combined authority is, too. We revealed just a week or two before the elections were postponed that the Mayor’s budget has a £1.2 billion black hole in it. He has made commitments £1.2 billion in excess of the funds he has available. That is because he failed to get his precept through, he failed to get any movement on supplementary business rates and the funding that was going to novate from the local enterprise partnerships to the combined authority has not come through. In addition, there is a £700 million funding gap on the transport plan, because the Department for Transport is beginning to query some of the transport schemes. The broad point I want to make is that coronavirus has created a significant risk to the local authority contribution, and it would appear that there is a significant risk in respect of the combined authority as well.

[Gary Sambrook]

On the point of commitment, it is cheap to try to bring coronavirus into this, given that we were having this discussion about the city council’s contribution before the pandemic started. I have to remind the right hon. Gentleman that it was the leader of the council, in order to get the Birmingham Commonwealth games through his own group, who made the commitment that the contributions of the city council would not have an impact on the revenue budget. He has gone back on that commitment, one that many Labour councillors are very annoyed about. So does the right hon. Gentleman share my disappointment in the leader of the council who cannot keep his own budget in order?