Birmingham Commonwealth Games Bill [Lords]

Debate between Gary Sambrook and Liam Byrne

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

[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?

Birmingham Commonwealth Games Bill [Lords]

Debate between Gary Sambrook and Liam Byrne

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

[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.