Oral Answers to Questions
Laurence Robertson Excerpts(11 months, 2 weeks ago)
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Lucy Frazer
The right hon. Member is absolutely right about the importance of protecting the original work of the creative industries. I have held a number of roundtables to ensure that we protect that originality. The Intellectual Property Office is working on that very issue, and I have been liaising with it and with the Secretary of State for Science, Innovation and Technology.
Mr Laurence Robertson (Tewkesbury) (Con)
Lucy Frazer
It is absolutely right that a deal should be done. The Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), and I have been encouraging all the authorities to come to an arrangement. We have been clear that if no arrangement is reached, there will obviously be a backstop in the legislation for the football regulator that we will bring forward to the House shortly.
Oral Answers to Questions
Laurence Robertson Excerpts(1 year, 1 month ago)
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Lucy Frazer
I am happy to speak to my colleagues in Government to understand how we can further support journalists. We have led a great deal of action recently and over a number of years to support journalists both here and abroad, and we have set up a number of funds and taskforces to support them.
Mr Laurence Robertson (Tewkesbury) (Con)
Christian Wakeford (Bury South) (Lab)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
The Government remain committed to putting fans at the heart of football and to ensuring that the game has a sustainable financial future. The football governance Bill was included in the King’s Speech, and we intend to work closely with the Football Association, the leagues and fan associations to build the best independent regulator possible.
Mr Robertson
I thank the Secretary of State for that response. My understanding is that while negotiations are taking place between the Premier League and the English Football League, there has not yet been agreement on redistribution of money. Is there anything she can do to bring the two sides together so that progress can be made on that very important issue?
Lucy Frazer
I understand my hon. Friend’s concerns. It is really important that football comes to a deal in relation to distributions. I support him in encouraging the football associations to do so, and I continue to urge them to reach an agreement in that area. Although our preference is a football-led solution, given the importance of distributions to financial sustainability, the independent football regulator will have targeted statutory powers to intervene on financial distributions as a last resort, if necessary. If football fails to deliver a solution, the regulator will deliver one.
Creative Industries: North-east
Laurence Robertson Excerpts(2 years, 1 month ago)
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Mr Laurence Robertson (in the Chair)
I will call Julie Elliott to move the motion, and then the Minister to respond. As is the case with 30-minute debates, there will not be an opportunity for the Member in charge to wind up.
Julie Elliott (Sunderland Central) (Lab)
I beg to move,
That this House has considered the contribution of the creative industries to the North East.
As ever, it is pleasure to serve under your chairmanship, Mr Robertson. Today I will speak about the significance and impact that the arts and cultural sector has on our communities and on the economy and, in particular, the huge benefits that Sunderland has seen from recent developments. Sunderland and the wider north-east has always been a hub for culture and creatives. The recent growth in investment and attention shows just how significant the potential of that sector is, and gives a good indication of where we are headed. The many partnerships that the creative industries have developed in the area over the last few years have boosted the opportunities for jobs, the development of skills, and community engagement, as well as bringing people in from near and far. That benefits the local and regional economy.
The creative industries and cultural sector combined are worth just under £1.5 billion in gross value added to the north-east economy. That shows how much the sector contributes, and, more importantly, how much room there is for growth and how far investment has the potential to go. We have seen a 43% increase in the economic value of the creative industries in the north-east over the last 12 years, since I became a Member of Parliament, and a 10% increase in the cultural sector. That is at a time when the Government have cut council budgets, which has in turn been passed on to the creative and cultural sectors, and the pandemic set the sectors back across the north-east and the country.
There are some 3,500 people employed in the sector in Sunderland, and there are tens of thousands of job opportunities across the north-east. Sunderland is a city that has a creative and cultural sector steeped in history, from historic institutions like the Sunderland Empire—a landmark of the city, dating back to 1907, that welcomes over 300,000 visitors every year and attracts many west end shows—to modern collaborations such as Sunderland Culture.
Sunderland Culture, which has just celebrated its 10th anniversary, was founded by a collaboration of the University of Sunderland, Sunderland City Council and Sunderland Music Arts and Culture Trust. It has delivered programmes in the Northern Gallery for Contemporary Art at the National Glass Centre and, most recently, the new Fire Station theatre—the opening of which I had the privilege of attending. It is a stunning auditorium space that has created a home for many of the talented performers of Sunderland. More importantly, it has redeveloped a former fire station, which was a heritage building so has attracted heritage funding. It is beautiful to see that the bars and restaurant attached to the new auditorium are actually the former fire station. The father of my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) used to work in that fire station, so it is particularly special when he visits.
The Fire Station theatre has already been host to a range of incredible events, and half of those who have come to visit the venue have been from outside the city. That boosts the local economy by bringing people into the city centre who are going to the bars and restaurants and bringing revenue. In the first four years of its existence, Sunderland Culture can boast that the city has attracted 3.5 million visitors to its venues and programmes. It has helped to host over 1,000 exhibitions, performances and events in the city and online, seen almost 40,000 school visits to cultural venues and had over 150,000 participants of all ages. That is truly an incredible achievement.
The cultural investment in the city does not stop there. We currently have the Sunderland Festival of Light down by the seafront and in Roker park—not the former football ground, but the Victorian park. There are ongoing projects, such as Culture House, a project for learning and creating that will sit in the very centre of the city. Yesterday, we also had a formal announcement of a huge new project in the city. Pallion Engineering announced that it had made a planning application for the development of a huge new production space at Pallion shipyard on the banks of the Wear. This is a sensitive subject for people in Sunderland, as we have a long history of shipbuilding in our city, but the river has changed. Many buildings have been built and the possibility of building ships on our river went when the shipyards were closed by the Government in 1988-89. Tyne and Wear Development Company, which did not need planning permission under the Thatcher and Major Governments, was created. That meant many buildings were built on our riverside, making it impossible to build ships again on our river unless buildings were pulled down. Sadly, although I totally understand the emotion of wanting to bring shipbuilding back to our city, it is not realistically possible. The opportunities in that area with offshore wind and refitting are better placed at our port, a little further down the river.
The building that is the subject of the planning permission application was built in the 1970s and closed in 1989 for building ships, although there has been fabrication work there since then. The history and the new production space are both incredible testaments to the history of our city and its contribution to the world, and also an example of the city’s future. The plans are for 500,000 square feet of creative space, maintaining the existing huge structures, with plans to have the largest covered water studio in the world. That will be a huge thing not just for Sunderland and the north-east, but for the country. There is the potential for creating 1,000 new jobs. Although during the second world war, we were the most productive city in the number of ships built, we can once again be a world leader, with the biggest water studio in the world.
Although developments are in their early stages, the plans are being led by production company Metalwork Pictures USA, Broadwick Live, Pallion Engineering and Kajima Corporation of Japan. This is a great opportunity for regeneration of an area that needs it. It is a great opportunity for the growth of our creative sector and a perfect opportunity for the development of skills and training in the local area. The wheels are already in motion in some of these areas, most notably by the opening last year of Fulwell 73’s new office in the University of Sunderland. An organisation co-founded by Sunderland-born Leo Pearlman, it has produced an incredible list of films, TV series, adverts and music videos, not least the famous Netflix series “Sunderland ’Til I Die” about our beloved football club. It is an incredibly welcome addition to the cultural ecosystem of the city, and forms part of a commitment to upskilling and reskilling in the city. That forms part of a plan to ensure that the sector continues to grow. The transferable nature of skills that have been learned in industry or in apprenticeships over to the creative sector is huge. The latest developments by big production companies provide new opportunities for local people to train and work in the creative industries.
I must also pay tribute to North East Screen, a film agency supporting local productions, helping to drive local talent. It supports incoming productions by connecting companies with crews, filming locations and a host of other north-east creatives, helping to develop the many broadcasting projects coming to the region. Last month, for example, an initiative promoting opportunities for comedy creators was announced, as the first development opportunity of its kind, giving comedy creators in the area the chance to pitch their ideas to the BBC, and gain support in bringing their projects to life. The BBC also announced £25 million investment in the region, drawing on partnerships with local authorities, working together to create growth in skills, talent and creative industry infrastructure.
The importance of public service broadcasting and its commitment to regional programming cannot be overestimated. This is another example of its benefits, in addition to the increased allocation of Arts Council funding for the 2023-26 investment round announced last week. I must at this point praise the commitment to our city from Darren Henley, who is regularly a visitor to our city. In fact, in Select Committee, he has said, “I love Sunderland.”
I believe that the success that we have seen in Sunderland and the wider region and the very good examples of collaboration will be for the benefit of the creative industries as a whole, but there is undoubtedly still much more work to do. Although local partnerships are flourishing and we are finding investment through private initiatives such as the one proposed at Pallion shipyards, per capita investment for Sunderland remains well below that for equivalent cities. There is a long way to go on the levelling up to which the Government are committed, to balance investment across the country.
I would like to ask the Minister today about Government support for skills and training to support the sector in Sunderland, the north-east and, indeed, the wider country. I am aware that there is a cross-over in responsibility between Departments, but I believe that it is the Department for Digital, Culture, Media and Sport’s responsibility to make the case for the cultural and creative sectors to those other Departments. I look forward to a commitment on that issue from the Minister today, to ensure that the growth is sustained, that local people have access to the new opportunities that my city is gaining and that the benefits of the growth are shared. I also ask the Minister what plans she has to support the growth of the creative industries as a whole in the region, to ensure that schemes that bring vital boosts to the local economy are successful and have the support to be sustainable contributors to local economic growth.
What plans do the Government have to support arts training programmes, and to support young people entering the sector? Reskilling and retraining for those already well versed in skills such as construction and those trained as electricians—accountants are in demand in this area as well—is an extremely valuable resource for the creative sector. We need to look not just at bringing people through school, education, higher education and so on, but at some of those transferable skills that, with small tweaks and small training programmes, could be very effective in this area. The University of Sunderland has done an incredible job, now in collaboration with Fulwell 73, to provide an extremely high-quality training programme for young people, but the number of students starting arts courses has fallen in the last 10 years. That simply must be rectified. The value and contribution, and the potential, of the sector must be recognised.
Covid-related issues are ongoing. Many freelancers in this area of work went on to find other jobs at the height of the pandemic, because they slipped through the net of a lot of the support that was available. They have left the industry and are not coming back. We need, and the Government need, to look to see whether that can be addressed to encourage some of those people back with the opportunities that are available.
Some incredible projects have been launched in Sunderland recently, and there is potential from yesterday’s announcement, but there is still a lot of work to do. I look forward to the Minister getting behind the growth in the region’s drive to grow its creative and cultural sector, and I look forward to hearing what she has to say.
BBC Charter: Regional Television News
Laurence Robertson Excerpts(2 years, 5 months ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Laurence Robertson (in the Chair)
Before we begin the debate, I should tell Members to feel free to remove jackets if they wish because of the temperature.
Rob Butler (Aylesbury) (Con)
I beg to move,
That this House has considered the BBC Charter and the closure of regional TV news programmes.
It is a pleasure to serve under your chairmanship, Mr Robertson. When I was 15, I wrote to BBC Radio Oxford to say that it should make programmes for teenagers. Its reply offered me the chance to make those programmes myself. Thus began my career in broadcasting. After I had graduated, I worked for BBC News for seven years before moving to Channel 5, where I stayed for another eight years. I declare an interest: I have a background in broadcasting and spent a considerable period working for the BBC.
One of the things that made BBC Radio Oxford great when I was there was its connection to the audience. Its presenters, reporters and producers knew the local area, understood the local issues and related to the local people. That is the case now for the Oxford television newsroom, which each evening produces dedicated programming in “South Today”. The title sequence shows the names of the places that feature: Abingdon, Bicester, Brackley, Buckingham, Didcot, Witney and, of course, Aylesbury, my constituency. The Oxford programme has a dedicated presenter and a dedicated team of journalists who produce dedicated programming for their local audience, yet that programming is under threat.
At the end of May, the BBC announced that it will
“end the local TV bulletins broadcast from Oxford on BBC1 at 6.30 pm and 10.30 pm on weekdays.”
From November, regional coverage for the area will be merged with the “South Today” programme broadcast from Southampton. Instead of there being TV news for my area, the BBC says it will be
“strengthening its local online news services.”
The BBC has decided to do the same with its bulletins produced in Cambridge—scrap the TV programme and put the local news online instead. I know there are colleagues here today who are affected by that decision.
The BBC has a unique and privileged place in our country. It is funded by a licence fee that is imposed on everybody who owns a television set, irrespective of how much they earn and how much BBC output they watch, listen to or read. In return for that funding model, the BBC is governed by a royal charter that sets out the corporation’s responsibilities. The charter lists the public purposes of the BBC, and this is the first among them:
“To provide impartial news and information to help people understand and engage with the world around them: the BBC should provide duly accurate and impartial news, current affairs and factual programming to build people’s understanding of all parts of the United Kingdom and of the wider world. Its content should be provided to the highest editorial standards. It should offer a range and depth of analysis and content not widely available from other United Kingdom news providers, using the highest calibre presenters and journalists, and championing freedom of expression, so that all audiences can engage fully with major local, regional, national, United Kingdom and global issues and participate in the democratic process, at all levels, as active and informed citizens.”
The debate is not the place to discuss how fully the BBC complies with everything set out in that paragraph—there are certainly different views about how well it complies with the requirement to be impartial, for example —but I draw the attention of the House to certain key elements of the first of the public purposes of the BBC. Those key elements are to
“provide… news… to build people’s understanding of all parts of the United Kingdom”,
enable all audiences to
“engage fully with major local… issues”
and offer material
“not widely available from other United Kingdom news providers”.
I submit that, with its proposal to close the Oxford edition of “South Today” and the Cambridge edition of “Look East”, the BBC is failing to comply with those charter requirements.
The BBC needs to continue providing local news in the way people want to get it, because others have ceased to do so. Many local newspapers have closed in recent years. In August 2020, Press Gazette reported that, according to its analysis, 265 local newspapers had shut since 2005. Just last month, a report entitled “Local News Deserts”, published by the Charitable Journalism Project, set out a stark picture. It said:
“The current local news landscape of the UK is unrecognisable compared to 25 years ago…Average daily print circulation for the local regional and local press in 2019 was around 31%...of 2007 figures…The loss of revenue from print sales and the migration of advertising online has brought about successive shocks to the business model of local news. It has led to multiple title closures, redundancies, the ‘hollowing out’ of newsrooms, office closures and centralisation…Most local journalism is no longer written by separate editorial teams associated with a specific title.”
The report says that people
“want a trusted, locally based, professional and accessible source of local news, that reports and investigates local issues and institutions…provided by journalists local to their communities.”
The chairman of the project wrote in his forward:
“The collapse of local reporting is a slow-burning crisis in Britain.”
He pointed out that the income that kept local newspapers afloat in the past will not return.
That, then, is the picture for local print journalism, but it is not just newspapers that are leaving town. In September 2020, Aylesbury’s much loved and very widely respected commercial radio station, Mix 96, effectively closed down. It was subsumed into a new regional station called Greatest Hits Radio (Bucks, Beds and Herts), owned by Bauer. The dedicated team who had served Aylesbury with news, current affairs and local information were no more. The studios in our town have closed. Bauer promised that there would still be coverage of Aylesbury stories, but there are far fewer than there were. The reporters who lived and worked locally have gone.
Of course, I recognise that the way we get our news is changing. Many of us use our phones, for example, to see updates on Twitter or Facebook, but there is still a sizeable audience who want to get their local news from a local television programme, and that is especially the case for older people. Indeed, the BBC itself says that 75% of the viewers of “South Today” are over the age of 55. While many people in that age bracket are highly digitally savvy, plenty of others are not, and they should not be cut off from what is happening in their local area. They should still have access to information about local news. They should still be able to see their local politicians being held to account on their television screens.
Instead, with its latest proposals, the BBC plans to subsume the news from Aylesbury into a programme from Southampton. Frankly, stories about sailing and the coast are not terribly relevant to one of the most inland towns in England. The simple truth is that people in Witney do not have a great deal in common with people in Winchester. News about the havoc caused by HS2 in Buckinghamshire is not very high on the agenda of those who live in Bembridge on the Isle of Wight. The BBC is proposing to create a TV region that simply has no geographical identity. The result will be even lower audiences, as people tune out from a programme with stories to which they simply do not relate. This matters.
The broadcasting regulator, Ofcom, also highlights the importance of television as a source of news. Its most recent report on news consumption says:
“TV remains the most common platform for accessing local news.”
In addition:
“Use of TV is most prevalent amongst the 65+ age group, while the internet is the most- used platform for news consumption among 16-24s…BBC One remains the most-used news source across any platform”.
It is twice as popular as the BBC website and app: the figures are 62% for TV, 31% for online and app. Yet, the BBC wants to close its TV programmes, and put the content online.
The BBC says that when it closes its Oxford and Cambridge TV programmes, it will devote more resource to its local radio stations. But Ofcom says that fewer than half the population now use the radio for news—it is just 46%, whereas 79% use television. Again, the BBC is knowingly cutting programmes from a platform it knows is used and relied upon.
Some may say that this Government’s decision to freeze the price of the BBC licence for two years has forced the corporation’s hand. It is true that the BBC will have to make some cuts in some of its expenditure, but not in this case. The acting director of BBC England told me in simple words, “This isn’t about savings. I haven’t got to save a single penny.” In the correspondence I received from the BBC to tell me that it was planning to close the Oxford programme, it is confirmed:
“The BBC will be maintaining its overall spend on local and regional content in England over the next few years.”
Let me repeat that: the planned closure of BBC Oxford’s “South Today” programme is not driven by the need to save money. Instead, the British Broadcasting Corporation wants to shift more of its output online and away from television.
Having been a journalist and always wanted to hear two sides of the story, I went to the BBC to ask it to put its case. When I asked what evidence it had that people in my local area wanted to get their news online instead of on screen, I was told it would take some time to gather all that information from various sources. That was from the director who had made the decision to close the service. I was a bit surprised that he did not have the facts at his fingertips and could not immediately tell me the justification and why he felt that it was needed or desired, so I waited for a mass of evidence to arrive from various sources.
After 10 days, I got one page. It could not be said to provide the compelling facts that I had eagerly awaited. First, it set out some raw numbers. The BBC said that the average number of viewers for “South Today” was considerably lower in 2022 than in 2020. In 2020, however, all regional news programmes experienced a big increase in viewers because of the pandemic—a point proudly emphasised by the BBC in its annual report—so it is somewhat disingenuous to take that specific high point as a comparator to justify cuts now. Indeed, the BBC told me that the decrease in viewing of regional news programmes is happening more slowly than the decrease in viewing of other programmes.
On my one page of evidence, there was a single paragraph that could perhaps be said to touch on digital versus traditional ways to get local news. It said that the BBC’s own qualitative research showed:
“Amongst older respondents (55+) there has been a long-term trend away from traditional platforms (especially print media) and towards online sources, most significantly Facebook.”
The BBC added:
“This is supported by Ofcom data which reveals over 55s are as likely to access news online as through radio or print. This group expects to be able to access tailored local news online.”
Those listening closely will have heard two references to print and one to radio, but the word “television” is not mentioned in the evidence that the BBC provided to support its decision to cut a television news programme. It certainly did not say that older viewers were switching away from TV news, let alone that they wanted to do so and get their local news online instead. In fact, it says that of the weekly visitors to BBC News Online, 37% are aged 55 or older—in marked contrast to the 75% aged over 55 watching “South Today”—so there are serious concerns about older people being able to get easy access to increased online local news. I should also mention that there is a threat to the jobs of those who have dedicated years of their lives to producing high-quality local TV news. They have not been guaranteed new posts, and they should not be forgotten.
The BBC is a British institution. It does a great deal of good for our country, and I am very proud to have worked there. Its role providing news and information is crucial to our democracy, but with its plans to cut dedicated news programmes on television in the Oxford and Cambridge areas, it will reduce access to local news and information for many people. For the reasons I have set out this morning, I believe that contravenes its charter requirements, which is why I say it is not simply a day-to-day operational decision for the BBC, but a matter for this House and the Government. I look forward to the Minister’s response.
Oral Answers to Questions
Laurence Robertson Excerpts(2 years, 5 months ago)
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Nigel Huddleston
I appreciate the hon. Lady’s passion and commitment on the subject; we have had many conversations. She will be aware that we have engaged extensively with stakeholders in the course of the gambling review.
Mr Laurence Robertson (Tewkesbury) (Con)
When the Government publish the White Paper, which I very much look forward to, will they ensure that it makes it clear who will be responsible for the issue of affordability—the Government or the Gambling Commission?
Nigel Huddleston
Again, I cannot pre-empt the conclusions of the review, but my hon. Friend makes an important point. The Secretary of State in particular is aware of that and we will be communicating more in due course. Affordability is an important point.
Oral Answers to Questions
Laurence Robertson Excerpts(2 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Laurence Robertson (Tewkesbury) (Con)
The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)
I thank my hon. Friend for his question and pay tribute to his tireless work campaigning on behalf of the horse-racing industry. The Government recognise the contribution that racing makes to our sporting culture and to the rural economy. We equally understand the critical importance of being able to move racehorses across international borders. We are aware that the industry has provided proposals to HMRC and the Treasury regarding the VAT arrangements, and I can tell the House that the Treasury is actively considering those proposals at the moment.
Mr Robertson
I thank the Minister for that encouraging answer. As he knows, the owners of racehorses coming to this country to race have to deposit a VAT-equivalent security, returnable when they leave, whereas the owners of horses coming to this country for what are classified as work purposes do not. Given that it would not cost the Exchequer anything to correct this anomaly, and that it would help cash flow and reduce the administrative burden on racehorse owners, I hope that the Minister will continue to speak to the Treasury with a view to correcting it.
Chris Philp
I thank my hon. Friend for his clear articulation of the issue and his powerful expression of it. I will certainly convey that to Treasury colleagues who are currently considering the matter.
Gambling-related Harm
Laurence Robertson Excerpts(2 years, 9 months ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Laurence Robertson (Tewkesbury) (Con)
I draw the Chamber’s attention to my entry in the Register of Members’ Financial Interests. There is a further point that has not been mentioned. I represent the Cheltenham racecourse, and 45% of horseracing’s income comes from bookmakers. It is extremely important that we tackle problem gambling. One problem gambler is one too many, but is not that statistic very important when the Government consider how to take a balanced approach? The entire sport of horseracing is very worried indeed about the potential loss of income in what is not a well-funded sport.
Craig Whittaker
My hon. Friend is absolutely right, and we see that in snooker and darts as well, which rely on funding to ensure they remain popular.
I mentioned Norway and I will highlight a similar story in France, where online gambling is illegal and 57% of all gambling is done on the black market. In Bulgaria, it is 47%. In Italy, 23% of all money staked now goes to the black market. Here in the UK, although the figures are low in comparison, we have seen a large rise in online unregulated gambling, from 2.2% to 4.5% over the last 18 months. In unregulated, black market gambling—
Oral Answers to Questions
Laurence Robertson Excerpts(2 years, 10 months ago)
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Chris Philp
I thank the right hon. Gentleman for attending the recent meeting that we had on the topic. We are, of course, concerned about the possibility of black market gambling. I hope there will be proposals in our review to give the Gambling Commission additional powers to tackle and combat black market betting. We will be mindful of the risks that he has highlighted; I have discussed them already with the Betting and Gaming Council and the industry. We need to balance protecting people who are at severe risk of gambling addiction and serious harm—some people even commit suicide—with ensuring that there is not a flourishing black market, which I am sure all hon. Members on both sides of the House would want to prevent.
Mr Laurence Robertson (Tewkesbury) (Con)
I support the words of my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) and the right hon. Member for Warley (John Spellar). I welcome the fact that the Minister will carry out an impact assessment on the possible effect on horse-racing of any changes that he proposes. He will be aware that racing depends heavily on bookmakers for about 45% of its income. I congratulate him on that policy and thank him for the way in which he is carrying out the review.
Chris Philp
I thank my hon. Friend for the meeting that we recently attended. As I said, we will consider the impact of the whole set of proposals covered in the gambling White Paper, which will obviously have a number of effects on different bits of the economy. As I said at the meeting with the all-party parliamentary group on betting and gaming a few days ago, we want to ensure that nothing in the review undermines the status of horse-racing.
Oral Answers to Questions
Laurence Robertson Excerpts(2 years, 11 months ago)
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Mr Laurence Robertson (Tewkesbury) (Con)
The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)
I thank my hon. Friend for raising the vital tourism sector. He is right that some of the new rules, including the guidance to work from home, can be difficult for the tourism sector, because movement of people and social interaction is pivotal to a thriving tourism industry, but we have committed to provide support and over £35 billion has already been provided to tourism, hospitality and leisure businesses.
Mr Robertson
I thank the Minister for that response and his recognition that the advice is causing problems for a number of businesses. He is quite right. People who go out to work often use cafés, restaurants, pubs and shops outside their normal working hours. I know the Chancellor has brought in a package of measures to help businesses, and I do not advocate that businesses be closed, but when they are open but suffering from lower trade, how much they are losing is intangible and difficult to assess. Will my hon. Friend speak to the Chancellor again to see whether any further help can be given where it is necessary?
Nigel Huddleston
I thank my constituency neighbour again for raising these important points. We have ongoing dialogue with the Chancellor and the Treasury. The new grants the Chancellor announced just before Christmas will be very important in helping the businesses affected. Many will get the grants automatically. I encourage others—perhaps those on the edges of supply chains—that do not get the grants automatically to apply for the additional restrictions grants. The impact on them may not be obvious, and I appeal to local authorities, which have discretion in the allocation of those grants, to be sympathetic to such claims by the businesses affected in the way my hon. Friend describes.
Horse Racing
Laurence Robertson Excerpts(3 years, 3 months ago)
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Matt Hancock
I do, and I will come on to that point, because it is at the nub of how we ensure that we have a flourishing industry while taking into account the impact of gambling-related harm, which the hon. Gentleman knows is a matter close to my heart. However, it is possible to have policy that leads to a flourishing horse racing industry and the sport doing well that is symbiotic with that. That is what we need to achieve, and I have some suggestions for how we get there.
Newmarket, of course, is the centre of flat racing not just in this country but in the world, and is home to more than 3,500 horses in training. The number of horses in training there grew by 10% before the pandemic, despite falling numbers across the UK. One in three local jobs in Newmarket is related to racing, and 28% of all flat-race or dual-purpose horses in training under licence in the country are trained there. In fact, the success of the racing industry is providing jobs and improving livelihoods throughout West Suffolk, and I know from other Members who have significant parts of the racing industry in their constituencies—my hon. Friend the Member for Tewkesbury (Mr Robertson), who represents the Cheltenham racecourse, is present—that the livelihoods and the jobs, as well as the joy, that come from the sport are paramount.
Mr Laurence Robertson (Tewkesbury) (Con)
Let me first draw the House’s attention to my declaration in the Register of Members’ Financial Interests. Does my right hon. Friend recognise that it is important to allow racecourses to recover from the pandemic, and that any talk of vaccine passports would hit the sport very hard indeed?
Matt Hancock
My hon. Friend has made his point very clearly. Thanks to the vaccine, we have been able to reopen racing after more than a year in which there were no crowds—and for 11 weeks in 2020, it was closed altogether. It is thanks to the vaccine that the crowds are back, and long may they remain so. I will avoid the particular issue of the passports question; I know that my hon. Friend feels very strongly about it, and perhaps it can be the subject of the next Adjournment debate.
Let me pick up the economic point that my hon. Friend has raised. Nationally, aside from its contribution of about £4 billion a year to the UK economy, racing as an industry has acted as a bridgehead for significant trade with and investment in the UK. I really want to land this point. Examples include massive investment in business, property and universities by investors who come to the UK because of our racing. As we work to build an outward-looking, international, free-trading global Britain, that investment is vital. In this mission, soft power is incredibly important, and when it comes to soft power, there is little more powerful than horse racing. Through the sport’s historic connection to what could be described as our oldest and most important soft power asset, the monarchy, countries and investors around the world are eager to see and invest in horse racing here in the UK. Our horses compete around the world, are watched on television around the world, and are loved around the world. For instance, Royal Ascot and the Grand National are broadcast to nearly 600 million people in 200 countries annually. We must safeguard and cherish this national treasure. We must not allow horse racing to fall behind in Britain.
Like many industries, racing has been hit significantly by the pandemic. We know that the lockdowns saved lives, and that without them we would have suffered much more, but we also know—and I know—that forcing businesses to close had a significant impact on our economy and on many industries. As I said earlier, in 2020 racing was closed for more than 10 weeks. Thanks to the vaccine, it has been able to reopen, but it is estimated that it lost between £400 and £450 million in revenues. I pay tribute to the Minister’s Department, to the policy officials, to Mark Hicks, the private secretary—he was my private secretary, and an excellent one at that—and to the Chancellor of the Exchequer, for implementing one of the most generous and successful support packages in the world. From speaking to my constituents, I know that without the furlough scheme and the £21 million of funding in the sport winter survival package, the racing industry, and all the jobs of those who work in racing, would have been wiped sideways.
In spite of that great work, however, we still have a significant problem as we come out of the pandemic. Prize money—which is the lifeblood of the industry, enabling owners to generate a return on their investment—has fallen by 20% from 2019 levels. Sales of horses have fallen by over 20%, and more than 60% of major breeding operations are reporting declines in turnover. If we do not take action now, we will be overtaken by countries around the world as the global hub of racing, and we must not let that happen.
Chris Philp
I was referring to the fears articulated during the 1960s, which of course have subsequently proven not to have come to pass, as the right hon. Gentleman has just said. The horse racing levy is a direct expression of the symbiosis that he refers to: the support that that two industries give one another. The one would certainly be weaker without the other, so I entirely agree with what he just said.
I also wish to reflect on the support that has been provided to racing during the pandemic, which my right hon. Friend referred to. Of course, horse racing has benefited from the economy-wide support that all businesses have received—the rates relief and the support on jobs, through things such as the furlough scheme, which have been provided by the taxpayer. In addition, the horse racing industry, by way of the Horserace Betting Levy Board and The Racing Foundation has also received £28 million in terms of cash flow and hardship support, and £20 million of levy funds were aimed at supporting racecourses, with £8 million from the foundation supporting individuals in the sector. So the sector has received substantial support not only generally, but specifically. Since then, the HBLB has agreed to make additional contributions to prize money until the end of December, which will help to mitigate the lower amounts made available by courses due to covid—this partly addresses the concern that my right hon. Friend raised a little earlier.
As my right hon. Friend said, racecourses are also accessing support through the sports survival package, organised by the sport Minister, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire, where a £21.5 million loan has been made to the HBLB to enable it to provide extra. The HBLB has earmarked £15 million of that to be distributed via prize money this year, 2021, keeping a further £6.5 million in reserve for 2022. Of course, it has not been a one-way street, because horse racing has given back. It has donated £2.6 million to NHS charities from betting on the grand national, and a great deal of voluntary work has been done as well. I pay tribute to the horse racing industry’s contribution to our country during this time of crisis.
Given that time is pressing, let me address directly some of the requests my right hon. Friend made in his excellent speech. On a review of the horserace betting levy, it was of course reviewed relatively recently in 2017, when my right hon. Friend was a Minister in the Department, albeit not directly responsible for this policy area. In that review, the Government fixed the levy at 10% of bookmakers’ gross profits, to avoid annual negotiations, and based the levy on gross gambling yield—in effect, the gross profit—rather than turnover, so that there was a certain amount of risk-sharing between the gambling industry and the horse racing industry. One could conceive of circumstances in which, for some reason—unexpected events—the gambling yield might go down. That would clearly affect both parts of the sector, which are symbiotic, rather than falling wholly on the shoulders of the gambling industry, which is why the levy was originally constructed in that way.
A review is due to take place in three years’ time, in 2024. I am of course willing to listen to detailed representations if there is a case for looking at it again sooner. I think that the measures that I have set out addressed the issues in respect of covid, but if there are particular reasons why a review ought to be considered sooner, I would be happy to look at detailed representations from either my right hon. Friend or the industry, and I would consider them carefully. Having been appointed only a week ago, almost to the hour, I do not want to race to make any commitments in this policy area, but I will of course listen carefully.
Mr Laurence Robertson
I welcome the Minister to his new role. On the wider gambling review, will he confirm that it will remain the Government’s policy to ensure that it is evidence-based and evidence-led?