British Library Board (Power to Borrow) Bill

James Cartlidge Excerpts

Friday 13th March 2020 Commons Chamber

[Bim Afolami]

It provides a very good advantage to small businesses. If anyone from the Treasury is listening, they will have heard how popular the Budget appears to be on the Government Benches as well as on the Opposition Benches. In this House, whether on Budget day or on big issues of foreign affairs and the like, we often focus on the macro big-ticket items, but often comparatively smaller things in money terms have the biggest impact in local communities. Libraries, and indeed the British Library, are an example of that.

The British Library is enjoyed by more than one and a half million people a year, with another 27 million visits to its website. Its origins in the British Museum Library go back 250 years or so. It is home to Magna Carta, handwritten lyrics by the Beatles and, I am told, even a gravestone. I am not quite sure where they have put it—perhaps in the same place as the “Ed stone” from the right hon. Member for Doncaster North (Edward Miliband). Sorry, that was rather mean of me, but I could not resist it.

When I visited the British Library last week to talk about the Bill, the staff were very kind. They showed me some of their manuscripts and exhibits, including manuscripts from the Anglo-Saxon era. As somebody who did his thesis on the development of the burghal system of Edward the Elder, that was a real interest to me, though not to too many others in the world.

[James Cartlidge (South Suffolk) (Con)]

He’s a moderniser.

[Bim Afolami]

I am on the moderniser wing.

I also saw letters from the Anglo-Saxon period to the 20th century, including those from the Conservative Prime Minister Arthur Balfour—his statue is in Members’ Lobby—to a young, ambitious, thrusting Conservative Back Bencher called Winston Churchill, basically telling him to calm down. They showed me everything in between. The collection is almost unparalleled not just in this country but across the world.

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[Bim Afolami]

My hon. Friend makes a very important point. It is worth now explaining exactly how the process works. In effect, the British Library currently has a grant in aid from the Government through the Department. Under this Bill, in the event that the British Library wishes to borrow any money, it will submit an application for a Government loan. That application will include all terms, including the period of time and any terms on the debt, and the man or woman in Whitehall will have to approve that. But there is no monopoly on wisdom anywhere, so let us just say that the investment does not work—that it goes wrong. In that event, the grant in aid to the British Library would be reduced. This Bill will therefore not result in a loss for the taxpayer. If the British Library takes on debt that it does not pay back—either in part or in full—the consequences will be on the British Library. The big failsafe is the fact that the debt has to be approved by the Government. The British Library will not be going out to commercial banks; it has to go through the Government. Hopefully, that will avoid the problem mentioned by my hon. Friend.

[James Cartlidge]

My hon. Friend is making an excellent speech. Is not the key point that this legislation is not revolutionary? I believe that the Natural History Museum and the Science Museum have both enjoyed this borrowing power since 2013, and that it is quirk of legislation that the British Library has not. Is it not therefore the case that, rather like many of the books that I have borrowed, this legislation is overdue?

[Bim Afolami]

I agree with my hon. Friend. It is worth saying that in 2013 many DCMS-sponsored museums—such as Kew Gardens, the British Film Institute, Historic England and the Ministry of Defence museums—were given 12 operational freedoms to help them become more financially independent and access finance for new projects, through commercial revenues, philanthropic donations and the like. Of the 12 freedoms, the British Library has 11. It is just that the 12th was prohibited by the 1972 Act, which this Bill seeks to change. My hon. Friend is indeed right that this Bill will bring the British Library up to date with other similar museums.

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[Bim Afolami]

That is a very good question. My under- standing is that the monitoring will be, first, whether the library pays back the money on time, because by paying back on time we show that we are satisfying the terms of our debt and upholding our end of the bargain. More broadly, the Minister on the Treasury Bench is responsible for overseeing the British Library, and indeed all the other sponsored museums and libraries. It is therefore the Department’s responsibility to ensure that the library is operating in a sensible way.

Across both its sites, at Boston Spa in west Yorkshire and at St Pancras in London, the British Library holds over 150 million items. It is interesting to think about the scale of the physical collection, which expands by something like 8 km every year—the distance between Westminster and Greenwich. Then there is the digital archive, which in 2019 alone expanded by the equivalent of 2 billion web pages. The library’s expertise in digitisation means that rare and fragile objects are available for anyone to see online while protecting them from damage—a point my hon. Friend the Member for Wantage (David Johnston) made earlier. That expertise, because it is online, can be shared around the world.

Why is it important that that expertise should be shared around the world? After all, it is the British library, this is the British Parliament and it is for this country. It is important because we are not an isolationist or inward-looking country. The British Library, like the BBC and all sorts of institutions, is critical to our soft power. Those institutions are critical for displaying to our partners and friends around the globe that Britain is not just a leader in the things they know about, such as our armed forces or the English language; we are also a cultural leader. Showing that culture is so important to this country, and the British Library is a key part of that.

Many Members might be thinking, “Why does the British Library really matter? Yes, the library is important, but it is not really core to my politics or the concerns of my constituents.” I will say two words for why it matters: levelling up.[Interruption.] I can see Opposition Front Benchers saying that they have another four years of this. Indeed, they might have another 10 years of it. It means levelling up regionally. As I have said, the British Library reaches out across the country beyond its two sites. With the ability to borrow, it can do even more and have more ambitious plans for spreading its model and its knowledge and expertise throughout the country.

The British Library matters because it is at the forefront of what a public library means in the 21st century. It is not just about lending books and providing people with space to work. In its own words,

“helping businesses to innovate and grow”

is one of the British Library’s core public purposes. Through its network of business and intellectual property centres in public libraries across the country, the British Library offers support and advice to entrepreneurs and small businesses, helping them to thrive, with most of those people being outside the main site in St Pancras; it is important that the House appreciates that.

I visited the business and intellectual property centre in St Pancras last summer with Baroness Neville-Rolfe, to look at ideas for promoting businesses in underperforming regions and helping entrepreneurship. That was when I first came across the people who run the British Library, long before the Bill was conceived, and I was really impressed with the work they were doing. As I was walking around, I talked to not only members of staff but the businessmen and entrepreneurs themselves, and I saw the value that they were getting out of that service. Indeed, I met a constituent who said, “Gosh, Bim, I had to come to the British Library because our local library didn’t have that capacity”—they travelled into London to get that advice from entrepreneurs. My constituency is only 35 miles from London, so imagine how difficult that is for somebody who is 150, 200 or 300 miles away from London. That is what we need to change, and that is one reason why we need the British Library to be able to borrow money.

It means levelling up not just regionally but with those who are under-represented. The impact that the British Library is already having on groups of people who are otherwise under-represented in business is unmistakable. From January 2016 to December 2018, of the business and intellectual property centre users who started a new business, 55% were women, compared with 22% for new business start-ups across the UK, and 31% were from black, Asian and minority ethnic backgrounds, compared with only 5% nationally. Further- more—I found this stat really surprising—17% of all the people who come through the British Library’s business and intellectual property centre have a disability of some kind; nationally, the figure is below 2%. The British Library has already shown that it is doing good work, and we need to help it to do more.

It means levelling up to ensure that the British Library can innovate, just like the entrepreneurs that it helps. The DCMS voted loans scheme, which is the process whereby the British Library will get access to the debt, has already been used by other cultural institutions for things such as new buildings to house collections and conservation studios or to move staff into; newly constructed, purpose-built storage spaces; building new galleries; increasing visitor footfall; and putting more objects on display. Those are the sorts of thing that the British Library could do if it had the ability to borrow.

Our cultural institutions in this country need to be much more commercially minded to generate extra sources of income to help them continue their valuable work. If we go back, say, 40 years, the grants in aid to certain public institutions might have been bigger, but they did not have a digital presence in those days. Now, all those institutions need to have a significant, prominent, effective digital presence, because if they do not, people will not value the physical presence. That is a huge expense that did not exist 40 years ago, and our cultural institutions need to be able to have that.

It is worth me talking about the St Pancras Transformed project, to give a flavour of what could happen across the country if the Bill passes. It is a public-private partnership to extend the London site, to create more exhibition spaces, improved public areas, a better offer for business users and a permanent home for the Alan Turing Institute. It will also provide flexible accommodation for third-party companies and institutions.

[James Cartlidge]

My hon. Friend is getting to the nub of the matter and he is making a fantastic speech. On the other services that the British Library could provide and the commercial aspects, can he tell us whether some of them will be charged for? Obviously, the overwhelming service provided by the British Library is free to use, but some of us would argue that, if it provides a competitive charge for services to cross-subsidise that, that could be justifiable.

[Bim Afolami]

The answer is that some would be charged for and some would not. I repeat the example I gave a few minutes ago about membership. If there were a members’ area in the British Library—it has one at the St Pancras site but if it wanted to extend that model to one of the public libraries across the country—members would pay a subscription that enabled them to go to a certain part of the library. There would also probably be a café in that part of the library, which would obviously charge for food and drink: coffee, tea and the like. Again, the café would be making commercial revenue and the members would pay, but that would not prevent people from going to the library, using the computers, borrowing books, getting advice for their business and so on entirely for free. It is a mixture and it would really depend on the part of the country people are in.

One of the things we have thankfully moved away from in this country over the last 10 or 15 years is the idea that one centralised model works everywhere. I know that libraries operate in my constituency differently from how they operate in the constituency of the hon. Member for Batley and Spen. It is just different: the demographics are different, the ages of people wanting to do things are different; the atmosphere is different; the landscape is different; the sorts of companies people want to set up are different; and the types of books people borrow are different. This is about giving our institutions enough freedom that they can move forward and innovate in an entrepreneurial way, but do that locally in a way that is locally based and locally sourced.

It is time that we gave the British Library the same freedom to borrow, the same flexibility and the same opportunities that so many other cultural institutions have, because this country will benefit from that. The British Library overall will benefit, both in St Pancras and in west Yorkshire. The expanding network of public library hubs will benefit. Indeed, the British people, whom we were all elected to represent, will benefit.

In speaking to colleagues about this Bill, they have been generally supportive, but I was asked one question more than any other. Indeed, I touched on it when my hon. Friend the Member for Sevenoaks (Laura Trott) made this point earlier. What happens if the British Library borrows money and cannot pay it back? Just to reiterate, should the British Library apply for and receive a Government loan, it would have to pay it back, and if it did not pay it back either in part or in full, the grant in aid would be reduced correspondingly, and the British Library would have to adjust to that reduction in revenue. Ultimately, it would have to make sure that the public purse—the taxpayer—did not lose out as a result of the Bill. It is very important that the House recognises that point.

Some people, although I definitely do not agree with them, have mentioned—[Interruption.] Yes, this sounds like a straw man, but it is actually true. Some people have said that what libraries actually need to do is to move entirely online and get rid of the physical books. [Interruption.] No one here—good—but some people do think that. Indeed, I know some people do because, when I was speaking to the Department about the Bill and thinking about the questions people had already been asking and what had come up, one of the main things that came up was, “Bim, you’re going to have to have an answer to this question”.

So I thought about an answer to the question. My view is that there has to be a mix. Yes, we have to have physical collections, but we also have to match them with digital collections, a good online presence and digitising things where we can so that we can share them across the world—for example, for a school kid doing a project. We all remember having to do projects at school, and we had to go to a library and do all these things. The worse one I had to do was something on the WWF. I spent lots of time working on it, until, the night before, I realised it was meant to be about the World Wildlife Fund, rather than the World Wrestling Federation, which meant I did not get a very good mark. I do not know why I have shared that with everybody, but I have been living with the shame for a long time.

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[Neil O'Brien]

My hon. Friend made an important intervention that was, like the British Library, content-rich. I welcome her words. She is absolutely right that the British Library is helping entrepreneurs, and also that the Bill will help the British Library to be more entrepreneurial. It was the library’s brilliant idea to decide to set up these IP centres—the first in the world—and we are now helping it to expand them.

I welcome the fact that the British Library is going to renew the Boston Spa campus, with all the opportunities around that. The point about having borrowing powers is that it allows for the most to be made of opportunities. I welcome the fact that the library is exploring a presence in Leeds. I love the idea of British Library North. I really like the idea that it might use the old Temple Works. It is a famous building of the industrial revolution that at one point contained the world’s largest room, which is pretty cool. The only thing I would say—to grind my own axe for a moment—is that I would love to see some of these things happening in the midlands, especially the east midlands. So, “British Library, if you are listening, do not forget your old friends in the midlands! Please use your new borrowing powers to help us too.”

All the things that the British Library is doing create opportunities to drive economic growth, in small ways and big. The hon. Member for Batley and Spen (Tracy Brabin) made the good point that there is an excellent café there. It reminded me of the old advert for the Victoria and Albert museum that described it as a very good café with rather a nice museum attached. So there are small things but also much bigger things. One can imagine the physical regeneration and wonderful things that could be done in Leeds with the new campus. The fact that the British Library could borrow would let it go that little bit further.

This is a slightly different category of thing, but Network Rail recently rejigged Market Harborough railway station. It is great, but everything was replaced, like for like, whereas we could have made more of the opportunity of that regeneration. I hope that this new set of powers for the British Library will enable it to make the most of the opportunities and exciting things that it is doing.

I recently published a report on—Members should not groan—levelling up. It looked at, among other things, innovation, science and culture spending. I was struck that, taking Arts Council England and Department for Digital, Culture, Media and Sport direct funding of national institutions such as the British Library together, London received 47%—nearly half—of the total spending in England in the period from 2010-11 to 2017-18. Amazingly, that is a slightly lower percentage than in previous decades, but the spending is incredibly London-centric.

[James Cartlidge]

Is my hon. Friend aware that, in terms of growth of DCMS sectors in the economy, yes London is No. 1, but not far behind is the north-east?

[Neil O'Brien]

I thank my hon. Friend for that piece of information. It leads me neatly on to what I was going to say. It is striking that Arts Council England has targets and is aggressively moving to spend more of its budget outside London, which I welcome. It is starting from a base line of an absurd proportion of spending in London and is moving, although more slowly than I would like, clearly in the right direction. The reason why total culture is so heavily weighted towards London is not primarily to do with Arts Council England but mainly to do with directly DCMS-funded national institutions, of which the British Library is a main example. In that category of spending, 90% of the spending is in London. That is what drives the huge imbalance in spending. So many of the institutions that we love and cherish are in London. The Department is trying to do more elsewhere, but there is a lot more to be done.

Our national museums and arts institutions have become more innovative and commercial over time, because sometimes you have to speculate to accumulate. That is why today we will be giving them borrowing powers so that they can invest to grow.

It is true that the current British Library building on Euston Road is not as universally loved as the old domed reading room in the British Museum. There are so many wonderful things about that old dome. It had, funnily enough, a papier-mâché ceiling and it was opened in the Victorian era to a breakfast feast that included champagne and ice cream, which is my kind of library. The new building still had a much better fate than the French national library. Francois Mitterand’s library was built at the same time and has suffered technological problems, industrial relations problems and problems with thermal loading. The heat coming into the large glass L-shaped buildings was damaging the books, and the French press were quick to say that it was typical of a Mitterand project that it ended up cooking the books. The British Library has been more successful than that, and than the old Birmingham library, now demolished, which Prince Charles said looked like a place where books were incinerated rather than read.

Despite the fact the new reading room is not quite as beautiful as the old one, which Louis MacNeice imagined in his poem “The British Museum Reading Room” as a great beehive under which scholars worked away to store up knowledge, it is a hugely important national institution doing more and more every day to support our national life and economic growth. We should be proud of it. It is a wonderful institution. I am also proud of my hon. Friend the Member for Hitchin and Harpenden, who is today introducing an important piece of legislation that will support and protect an important national institution to do even more for this country.

[James Cartlidge (South Suffolk) (Con)]

I will be extremely brief, but first, let me pay tribute to my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) for a brilliant speech, and for presenting this worthwhile Bill.

On the principle itself, as has been said, the 1972 Act did not permit the British Library to borrow, hence the reason for this Bill, whereas other famous British institutions got those powers back in 2013. It is important to refer to the letter from the former Digital, Culture, Media and Sport Secretary of State, now Minister for Media and Data, my right hon. Friend the Member for Maldon (Mr Whittingdale). He wrote to the then chair of the Natural History Museum, Lord Green of Hurstpierpoint, about the change in the museum’s borrowing powers. It is important to note that he specifically said this in the letter:

“I encourage you to make the most of these flexibilities, including through considering ways in which capital projects can create income-generating opportunities, making them suitable for loan financing.”

That is really important. I have four children and we take them to the Science Museum and the Natural History Museum. Although it is free to get into those museums, they do have specific paid-for exhibitions, which can be absolutely brilliant. I recognise that we should preserve free access, but it is perfectly right to have very attractive features within the museum that are optional and chargeable. It is interesting to understand that that is where the Secretary of State saw this borrowing power being spent—on new income-generating sources. In my view, the purpose of this legislation is to give new gross value added to the sector, so that a museum can create wonderful new creative things around the country, which is part of that agenda that we call—let us have a drum roll—levelling up. [Hon. Members: “Hooray!”] We are not going to stop. We are going to keep levelling up. This is a very good Bill. It takes a great British asset and makes it even stronger. It is part of our soft power, and it adds to our economy.

I will just finish by referring to an experience in my constituency in Suffolk, which, I hope, will be part of the levelling up agenda—east as well as north, and so on. We have a very prestigious artistic heritage in South Suffolk. We could not move any of it, as it exists permanently. We have the tree, which is technically just outside the boundary, in front of which Mr and Mrs Andrews were painted by Gainsborough in Sudbury itself. We have Gainsborough’s House, where he lived, which has now become a museum, and just up the Stour, we have Flatford mill, which is the living site of the Hay Wain, the most famous English painting, so we have huge heritage. I spoke to Mark Bills, the director of Gainsborough’s House, and asked him whether he had borrowing powers—that is the principle of the Bill. He needs them because there is to be a major refurbishment of Gainsborough’s House. Money comes from the national lottery, but 10% is held back on projects, so it needs to have the ability to borrow, even if it is, in the parlance of a library, on a short-loan basis.

I very much commend the Bill. We should all support it because it adds to a great British institution. I look forward to hearing from my old friend the Minister about what more we can do.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I, too, rise in support of the Bill and congratulate my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) on bringing it forward. I am also going to mention those dreaded words “levelling up,” as they are a key part of this. It is something that many of us have been banging on about for years. We did not call it “levelling up” then; we called it “a fairer deal for the north” or something like that. Having said that, I fully concede that this is not just about the north; it is about every region in the UK. It is about spreading both facilities and jobs throughout the country. It is great to hear that the north-east is doing well in terms of DCMS funding. That has not been particularly apparent in my trips around the north-east—perhaps it was north-east London.

[James Cartlidge]

It is about the economics sector, not the spending of the Department. In terms of the growth in the DCMS sector within our economy, the second fastest growing part is the north-east.