Tuesday 8th June 2021

(2 years, 11 months ago)

Westminster Hall
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Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
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Thank you, Ms Rees, for the opportunity to respond on behalf of the Opposition. It is a pleasure, as always, to see you in the Chair. I congratulate the hon. Member for East Worthing and Shoreham (Tim Loughton) on securing the debate and setting out so clearly and powerfully the dilemma facing some of the country’s most respected academic and cultural institutions. I thank all hon. Members who took part. We heard from every single one about the value of the learned societies and their concerns about the situation.

My hon. Friend the Member for Rhondda (Chris Bryant), as so often, gave us a history lesson and set out eloquently the heritage value of the learned societies. What is notable about the debate is how many Government Members have expressed their concern and dismay. The Government have united the House in opposition to the situation that the learned societies have been placed in, potentially being forced to move from buildings specifically set up for their use as a cultural hub in central London.

The problem of unaffordable, escalating rent rises set by a landlord trying to maximise income is not unique, but what is wrong is that the rental arrangement for the societies should be unique, because their history and contribution to our society is unique, and there is a long history of British Governments providing them with an affordable tenancy in acknowledgment of their national value. These are model tenants who make essential contributions to our culture, heritage and society. In the post-covid world, where the climate challenge is huge, our policy makers may well be ever more in need of the advice and intellectual rigour of these learned societies. As the hon. Member for Bromley and Chislehurst (Sir Robert Neill) said, surely this is a case of a government knowing the price of something but not its value. That is not to say that the economic value is insignificant. As we have heard, PricewaterhouseCoopers say that the total contribution these societies make is well over £47 million per year.

The proposed rents are unsustainable for the societies. If they were forced to find new premises, it is highly unlikely that they would be able to afford another accessible city-centre location without the kind of special affordable rent agreement that was previously in place. A more remote location would reduce public access to the collections.

A relocation would be extremely expensive and likely require millions of pounds to be spent on transporting a huge collection of fragile items and customising a suitable place to store them. PwC estimated that almost one third of the societies’ public benefit value could be lost through the damage caused by forced relocation. Some of these losses would be priceless if the societies are forced to dispose of some of the precious objects in their care.

The societies have attempted to negotiate to secure a solution with the Government. Offers and counter-offers have been made, which have either still been unaffordable to the societies or have been rejected by the Government. Now is the time for the Government to really get serious about finally resolving this problem. For a Government who like to talk about global Britain, they are showing very little respect for protecting globally important British artefacts and institutions. The increases in rental income will be of relatively minimal benefit to the Government, but will do serious damage to the historic British institutions and to their cultural contribution.

The Opposition urge MHCLG to go back to negotiating in good faith with the learned societies, with the concerted aim of finding a sustainable solution that works for both parties and maintains the learned societies in their current home. I encourage the Minister to look at the various proposals put forward by Members today and by the learned societies, for example the acquisition of the long-term lease equivalent to fair market value that was offered by the societies in early 2020. If there are legitimate reasons for rejecting that or other offers, the Government need to be transparent about what they are, to continue the dialogue and to offer the societies the opportunity to work through them and to work together.

I close by making the point that many businesses are struggling at the moment with commercial rent debts, as a result of the pandemic. The Government’s response has been to issue a code of conduct for landlords to encourage them to negotiate with tenants to find a workable solution for both parties. Surely the Government need to lead by example.