Birmingham Commonwealth Games Bill [Lords]

Debate between Liam Byrne and Nigel Huddleston

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

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

I thank the hon. Member for Wirral South (Alison McGovern) for tabling the new clause and congratulate her and the hon. Member for Cardiff Central (Jo Stevens) on their appointments to the shadow ministerial team. I look forward to working with them in the run-up to the games and on many other issues. I also thank them for the constructive way in which we have already discussed many issues, which has proven that sport can indeed be a great unifier. Long may that continue.

Members of the House may know that, as an arm’s length body of Government, the Birmingham 2022 organising committee has its pay scales set in line with civil service pay rates. All direct employees of the organising committee are paid above the level of the Living Wage Foundation’s rates. While these rates do not apply to the organising committee’s contractors, I am confident in the steps being taken across the partnership to ensure that an excellent example is being set, and will be set, on fair pay. Of course, all employers must pay at least the national living wage, which has recently risen to £8.72 for the over-25s, and the Government have set an ambition for that to rise to £10.50 by 2025, should economic conditions allow.

Let us not forget, as the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) seems to have done, that under Labour in 2010 the minimum wage was £5.93, compared with £8.72 now. The tax-free allowance was £6,475 under Labour; it is now £12,500. There is a party and a Government that have taken quite a lot of action on raising the standards and wages of the lowest paid in society, and it is the Conservatives. That is a record of which I am proud. Much as the hon. Member may wish to talk about the efforts that he would like to make to raise the living standards of the lowest paid, perhaps he would like to take action. The reality is that, in government, it is the Conservatives that have taken more action than his Government did.

[Liam Byrne]

I am proposing some action that the Minister can take this afternoon. He could tell us whether he is confident, as he just said a moment ago—I think “confident” was the word he used—that contractors across the supply chain will be paid more than £9.30 an hour. Will he just tell the House whether he hopes that the Commonwealth Games organising committee can accredit as a real living wage employer? A simple yes or no will be fine.

[Nigel Huddleston]

I expect—in fact, the Government require—all employers to pay at least the national living wage. That is Government policy. I respect the right hon. Gentleman’s goals and ambitions, but I wish he would stick to the reality of what actually happens in government, rather than playing politics in terms of conversations and ambitions.

In the aftermath of covid-19, the games will be more important than ever in supporting the economic, cultural and social renewal of the west midlands. There will be more than £300 million in procurement contracts for local businesses, support for thousands of jobs and an integrated trade, tourism and investment programme, which will help to ensure that the games are at the heart of recovery efforts across the region.

[Nigel Huddleston]

As I said, the Government’s policy is already for a national living wage. That is Government policy. I understand the ambition and intent of the Opposition. It is the same as the Government’s: to raise the living standards of the lowest paid in society, and that is what this Government are delivering on, instead of just talking about it.

In 2020 alone, £145 million-worth of contracts will be available, with the organising committee continuing to promote these in recent weeks through webinars involving the local chambers of commerce. The trade, tourism and investment programme will showcase the best we have to offer a global audience and strengthen our economic ties with our friends right across the Commonwealth. It will be supported by £21 million of Government funding, ensuring that we can take advantage of the economic opportunities created by the games to deliver on the ambition that Opposition Members have just talked about. The Mayor of the West Midlands, the fantastic Andy Street, also announced just a few weeks ago that the West Midlands Combined Authority had launched a new Commonwealth jobs and skills academy to improve regional skills and employment opportunities through the games. This will be underpinned by a further £1 million of public money.

[Liam Byrne]

Will the Minister give way?

[Nigel Huddleston]

I will give way to the right hon. Gentleman one final time.

[Liam Byrne]

I am grateful, but if the Minister refuses to answer the substance of the argument, I will keep seeking to intervene. While he is on the subject of not playing politics and celebrating the role of the Mayor, will he confirm to the House whether the Mayor of the West Midlands has written to him to ask him to ensure that the organising committee accredits as a real living wage employer? Has the Mayor written that letter—yes or no?

[Nigel Huddleston]

I have no reason to respond to the right hon. Gentleman’s comments. I have a regular and very constructive dialogue with the Mayor of the West Midlands, who is doing everything he can to ensure that the games are highly successful. He has been absolutely pivotal in the success achieved to date, and will continue to do that for as long as he is in office—hopefully for a much longer period of time.

Let us not forget that the Birmingham 2022 games will be the first Commonwealth games with a social values charter. Accordingly, the organising committee has ensured that its procurement processes place added value on promoting those values. Added weight is being given to those companies that prioritise local employment opportunities and skills development. Alongside that, work continues to ensure that local organisations and voluntary, community and social enterprises can benefit from the opportunities of the games.

The best way to improve the economy and pay in the west midlands is to invest in skills and support business growth, which is exactly what the Commonwealth games programme will do. I hope that with those assurances, and taking into account the significant economic uplift that the games will generate for the local and regional economy, the hon. Member for Wirral South sees fit to withdraw her new clause.

--- Later in debate ---

[Liam Byrne]

My hon. Friend is absolutely right. It could be that the Minister has a better plan, in which case now is the time to set it down. The letters from the cultural sector are coming to him next week. I hope they will be signed cross-party, because we share an interest in the rich cultural life of Britain’s second city. If this is not the way forward, I ask him please to tell us a better way. If there is not a better way, I hope he will accept new clause 2.

[Nigel Huddleston]

We have discussed the issue of a hotel tax at great length during the Bill’s passage, but may I first say that I completely support and appreciate the comments on the importance of the tourism sector made by the hon. Member for Wirral South (Alison McGovern) at the beginning of her speech? It has perhaps not been recognised as so important partly because of the fragmented nature of the industry, but I assure her that I consider the tourism sector to be of great importance and will be doing everything I can to support it.

The Government have always been clear that the Bill is not an appropriate vehicle for a proposal such as the hotel tax. It is not a money Bill; that would be for Her Majesty’s Treasury to bring forward. My colleagues in the Treasury have been crystal clear that any case put forward for a hotel tax would need to be fully costed, including balancing the additional burdens on businesses. In any event, were such a tax to be introduced solely for the duration of the games, it is estimated that it would raise for Birmingham City Council about £4.5 million to £5 million for the whole year. That would be only a small part of the financial contributions owed by the council and its partners to the games. The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) mentioned the £184 million contribution from Birmingham City Council, and of course central Government will contribute nearly £600 million directly.

[Nigel Huddleston]

I do not believe that the proposal should be taken forward for a variety of reasons. The discussion about the financials of the Commonwealth games was sorted out and agreed some time ago—and it is still agreed.

We should consider the wider context. The tourism and hospitality sector has been impacted by covid-19 and the Government are focused on doing what they can to support the sector throughout this challenging period. As my hon. Friend the Member for Dudley North (Marco Longhi) said, I cannot see how an additional tax would help. Only a few moments ago, the right hon. Member for Birmingham, Hodge Hill lectured me about the importance of £1 and what a big difference that would make. Now he tells me that it is trivial. Which is it? It would not just be £1; it would be another pound and another and another. The potential for incremental increases in that kind of taxation is dangerous.

[Liam Byrne]

I respect the economic argument that the Minister tries to make, but the proposal is for a pilot scheme, which can be governed jointly, that delivers a £1 a night tax. A pound a night in the context of the average hotel bill in Birmingham is frankly pretty insignificant, but across a spectacle as grand as the Commonwealth games, it could mean a significant amount of money. If the Minister has got a better way of de-risking what is now a dangerous fiscal situation for the Commonwealth games, let us hear it.

[Nigel Huddleston]

I will come on to the financial contributions in a moment.

The new clause would or could inadvertently discourage people from staying overnight in Birmingham and the west midlands at games time—the very time we want to welcome the world to the west midlands and when the region is doing whatever it can to increase visitors and the opportunities generated by the games. On top of that, even though we do not charge a tourism tax in the UK, we charge full VAT on hotel stays, which many other countries do not. Many other countries do not charge full VAT rates on hospitality and leisure.

Furthermore, local authorities have a range of existing revenue-raising and fundraising powers that they could explore to support them to meet financial contributions that are associated with events such as the Commonwealth games. Most important, the council has always been clear that it can and will deliver its financial commitments to the games without the need for a hotel tax. As ever, we remain in close contact with the council on all aspects of the games, including the budget. It is also worth noting that early analysis of the financial impact of covid-19 has demonstrated that the additional costs arising from the pandemic can be met from the existing games budget.

Birmingham Commonwealth Games Bill [Lords]

Debate between Liam Byrne and Nigel Huddleston

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

[Nigel Huddleston]

I thank my right hon. Friend for his comments. I can assure him—I will come to this later in my speech—that the financial governance of the games is very strong. Again, we are working with all stakeholders to make sure that we can deliver on time and on budget—both on the time commitment and on the financial commitment.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

In the spirit of this debate and the cross-party nature of the spirit required to ensure the success of the games, I hope the Minister will at some point in his remarks reflect on the extraordinary strength of character required for a council that has lost £700 million of funding over the last few years to deliver the games not in the usual seven years, but in four and a half years. Let us unite around a shared endeavour to make this a success.

--- Later in debate ---

[Nigel Huddleston]

With the leave of the House, Madam Deputy Speaker, I thank hon. Members for their remarks and contributions and for the constructive tone of the debate on both sides. I shall endeavour to respond to as many of the matters raised as possible, but some may have to wait for Committee, which I am sure will be exciting.

The UK has a strong track record in hosting successful major sporting events. London 2012 is the most obvious example, but let us not forget that in recent years we have staged the 2014 Glasgow Commonwealth games, the 2015 rugby world cup, the 2017 world athletics championships, and the 2019 netball and cricket world cups, as well as the UCI road world cycling championships, to name but a few. I know that Birmingham 2022 will be just as successful and will rightly earn its place on this illustrious and growing list.

I welcome the cross-party support that the Bill and the games have received, both in this House and in the Lords, and the consensus across the House on the need to maximise the benefits of the games for our constituents, for Birmingham, and for the west midlands. We must remember that the games will be staged in record time. The organisers and, indeed, the House, need to be utterly focused on delivery of their contributions, and I am confident that we shall be. We can now all count down to the games in live time over the next 870 days, with the unveiling today of a countdown clock sponsored by Longines in the heart of Birmingham’s iconic Centenary square, as the hon. Member for Birmingham, Edgbaston (Preet Kaur Gill) mentioned.

The games will be a catalyst for change in Birmingham and the west midlands, and the benefits will be lasting—felt long after the 11 days of sport are over. We are working with games partners to secure a lasting legacy from the games that begins to benefit the region right now. In addition to the lasting physical legacy and fantastic facilities that the games will leave, the Government are working with games delivery partners and local stakeholders in the region to harness the power of the games to leave a wider social legacy. As well as being a catalyst for physical change in the city, our mission is to harness the power of the games to bring people together, improve health and wellbeing, help the region to grow and succeed, and put Birmingham and the west midlands truly on the map.

A wealth of opportunities will be created for the people of Birmingham as a result of hosting this event. As well as creating more ways to get involved in sport and culture within the local community, the games will create new jobs, volunteering positions and opportunities, particularly for young people, to develop skills, as mentioned by many hon. Members, including the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), the hon. Member for Birmingham, Perry Barr (Mr Mahmood), and my hon. Friends the Members for North Warwickshire (Craig Tracey), for Wolverhampton South West (Stuart Anderson), for Dudley South (Mike Wood), and for Birmingham, Northfield (Gary Sambrook).

The organising committee intends to create a wide range of entry-level positions for apprentices and to establish an in-house training academy, which will host three cohorts from autumn 2020, January 2021, and April 2021. The Department for Education recently announced a £20,000 investment in Birmingham to encourage more young people to become volunteers and coaches in sports clubs and the local community in the run-up to the games. In partnership with the Spirit of 2012, the organising committee recently confirmed the launch of a new £600,000 west midlands challenge fund, which will award grants to local organisations that create projects that bring disabled and non-disabled people together to participate in arts and cultural activities.

The Government and all our games delivery partners are committed to delivering a fantastic, memorable and lasting legacy from the games. I am grateful to my hon. Friends for their insightful contributions on this matter. I will keep the House updated on progress. Before I respond to key matters raised in the debate—

[Liam Byrne]

When the Minister does so, will he clarify for the House whether anyone in his Department has told the organising committee that it should not become an accredited living wage employer? I tabled a parliamentary question on that, and it is fair to say that the answer was not crystal clear.

[Nigel Huddleston]

I shall indeed come on to those comments, and I am sure that we shall discuss them in Committee.

Before I respond to the questions asked by colleagues, I should like to praise the three maiden speeches that we heard, from my hon. Friends the Members for Redcar (Jacob Young) and for East Devon (Simon Jupp), and the hon. Member for Stockport (Navendu Mishra). I hope you will forgive me, Madam Deputy Speaker, but as a sports Minister, my key comment is “Back of the net, gentlemen!” They did a fantastic job, and their constituents will be proud of what they have done today. They have represented them well, and they were incredibly articulate.

My hon. Friend the Member for Redcar mentioned quite a few things that I was not expecting—California, Winkie’s Castle, and sustainability. We will all remember him forever for his hard hat, which I hope is on his official parliamentary picture for many years to come. My hon. Friend the Member for East Devon gave a clear warning that the Treasury can expect many requests for cheques from his constituents over the coming years, and the hon. Member for Stockport mentioned many things in his contribution, including Engels, football and hats. He also mentioned the inequality in his constituency, and I am sure that he will be a champion for his constituents for many years to come.

I turn to other contributions. The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) commented on the Barnett formula. The UK Government contribution to the Commonwealth games budget is indeed subject to the Barnett formula, which the Treasury will apply in the normal way, as set out in the statement of funding policy—not in the way he wishes, but in the normal way.

The hon. Member for Washington and Sunderland West (Mrs Hodgson)—not surprisingly, as she is a great champion of these issues—commented on ticketing provision and enforcement. As she knows, the Government are committed to tackling fraudulent practices in the secondary ticket market and support the work of enforcement agencies in that area such as the Competition and Markets Authority, trading standards, and the advertising industry’s regulator, the Advertising Standards Authority.

We are working with the organising committee, local authorities, trading standards and West Midlands police to develop a co-ordinated approach to enforcing the provisions. More generally, the Government are working closely with national trading standards to ensure that they have adequate funding to tackle consumer detriment in the ticketing market. The hon. Lady and I, and others, will work on this phase over the coming weeks and months.

My hon. Friends the Members for Eddisbury (Edward Timpson) and for Gedling (Tom Randall) mentioned volunteering. Birmingham 2022 is committed to delivering volunteer programmes that are inclusive and diverse and that deliver a real and lasting legacy to the city, the region and the community. My hon. Friend the Member for Gedling spoke powerfully about his own experience in the 2012 games. He also mentioned games lanes. It is too early to say what temporary measures might be needed, but it is possible that temporary restrictions on sections of roads near games locations might be required. Any temporary measures will try to minimise disruption for transport users.

The hon. Member for Birmingham, Perry Barr and my hon. Friend the Member for Birmingham, Northfield both mentioned many other transport issues. I cannot answer all of them today and, of course, they know that some of those questions are largely matters for the local council, Birmingham City Council, and the combined authority to consider, but we will facilitate discussions, encourage co-operation where possible and engage with the Department for Transport and other bodies where appropriate.

With regard to the velodrome facilities mentioned by my hon. Friend the Member for Dudley South (Mike Wood), I understand that British Cycling is working with Birmingham City Council on research into the overall cycling facility needs in the west midlands. That research will be published in the coming weeks.

The hon. Member for Hornsey and Wood Green (Catherine West) and several others mentioned broadcasting. We know that the Commonwealth Games Federation and Birmingham 2022 are committed to ensuring that as many people as possible can access the games via their TV, mobile phone, computer screen and tablet. As it is a listed event, broadcasting rights for the Commonwealth games must already be available to the qualifying free-to-air terrestrial broadcasters. The games have had excellent live coverage for many years on free-to-air television. The organising committee is in the middle of a competitive commercial process with potential rights holders that cannot pre-empt the outcome of those negotiations.

Many Members raised the question of a hotel tax. As they would expect, there is a constant dialogue between Government and the council on all aspects of the games, including the budget. Birmingham City Council is committed to meeting its financial contribution for the games budget and it has published a plan for doing so without the need for a hotel tax. This will obviously be an ongoing debate, but it is worth noting that any new tax is ultimately a decision for the Treasury. It would also set a precedent, which we would have to consider carefully. Any such tax would also need to be balanced against the additional burdens on businesses in the hospitality sector, which, as we know, is facing challenging times at the moment. With my tourism hat on, I have to say that I am not convinced of the argument for a hotel tax at the moment.

With regard to the games village, we have confidence that all the games partners will play their part in delivering a truly world-class Commonwealth games in 2022. Birmingham City Council is currently finalising its full business case for the village, and a review of anticipated expenditure and funding arrangements is due for discussion by its cabinet on 17 March. I would like to reassure the House that we continue to work closely with the council and the rest of the partners to ensure that we have a great games.

Several Members raised the question of the living wage. I am confident that the games are already setting an excellent example on fair pay. The organising committee’s pay scales are set in line with civil service pay rates and all direct employees of the organising committee will therefore be paid above the level of the Birmingham living wage, and of course, all organisations awarded games contracts will be required to pay at least the Government’s national living wage. I am pleased to say that the national living wage is set to receive its biggest cash increase, rising by 6.2% from 1 April. Alongside this, we also need to consider the wider picture, which I have mentioned earlier, and we are ensuring that there will be lasting benefits for those living and working in the region, with many skills-enhancing opportunities.

There is a real commitment to ensuring that sustainability is a key pillar of the planning and delivery of the games. The organising committee has signed up to the UN sports for climate action framework, which aims to combat climate change and raise global awareness and action through sport. This is a proud first for the Commonwealth games movement and a key commitment to working towards our global climate change goals. The organising committee is in the process of developing its sustainability strategy for the games, and it will be released in the spring.

Regarding sponsors, the House will agree that it is critical that we raise sponsorship for the games in order to manage the public sector investment. Securing sponsorship and granting authorisations to associate with the games are a matter for the organising committee. It is still early days in terms of securing sponsorship partners, with three announced to date, but I would like to provide reassurance that my Department is in active discussions with the organising committee on the importance of promoting the games and their value through its sponsorship programmes. All potential sponsors will have to demonstrate their alignment with Birmingham 2022’s vision and mission, and an ongoing commitment to social values set out in the organising committee’s social values charter.

This is clearly a great opportunity for the United Kingdom. There is already great excitement and interest in the games not only in Birmingham and the west midlands but right across the country. We have many matters still to discuss, and I am looking forward to working with Members across the House in Committee to ensure that this important legislation reaches the statute book very shortly.

Question put and agreed to.

Bill accordingly read a Second time.