Local Authorities: Tourism

Lord Hunt of Kings Heath Excerpts

Monday 28th October 2019 Lords Chamber

[Baroness Barran]

I recognise that the noble Baroness has done a great deal of work on and thinking about these issues. The Government share her broader aim to give local authorities, businesses and other stakeholders a real voice in the local tourism strategy. Our view remains that it is a matter for the Treasury to review the tax regime, and we have no plans to introduce any kind of local taxation.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Baroness will know that the intention in Scotland is to allow Edinburgh to go ahead with a tourism tax. Under debate on the Birmingham Commonwealth Games Bill, why was not Birmingham given the opportunity to at least pilot a tourism tax, which would have paid for the city’s contribution to the costs of the Commonwealth Games? Does she further share my disappointment that the Liberal Democrats would not support that move when we debated it at that point?

[Baroness Barran]

On the Scottish approach, we will clearly be watching developments there closely and aim to learn from them. In relation to the Birmingham Commonwealth Games, I have been reassured that my honourable friend the Minister in the other place had confirmation from Birmingham City Council that there is no need for additional taxation: it can meet the cost of the games.

Birmingham Commonwealth Games Bill [HL]

Lord Hunt of Kings Heath Excerpts

3rd reading (Hansard): House of Lords
Wednesday 23rd October 2019 Lords Chamber

[Lord Campbell of Pittenweem (LD)]

My Lords, briefly, I associate myself with the expressions of support we have already heard. There is no question but that Birmingham has done both the Commonwealth and sport a great advantage through its willingness to take on the production of these Games at short notice after a previous candidate had to withdraw. So far as we can see, the arrangements are proceeding at pace and are well judged. On this occasion, we can comprehensively wish Birmingham a good strong following wind.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this is too good an opportunity to miss. In thanking the noble Baroness and her colleague for steering the Bill through, I want to put a question to her, as suggested by my noble friend Lord Faulkner. Can she assure me that Kings Heath station will be reopened in time for the Commonwealth Games?

[Baroness Barran]

I may have to write to the noble Lord on that.

Birmingham Commonwealth Games Bill [HL]

Lord Hunt of Kings Heath Excerpts

Wednesday 24th July 2019 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, that was a very valuable intervention by the noble Baroness. I hope that her speech and the Minister’s response will be communicated to the organising committee; clearly, if we are to make a success of these Games, we need to ensure that the sorts of risks identified by the noble Baroness for the city of Birmingham and from other Games are averted.

In supporting the noble Lord, I come back to the point that he raised about the Minister’s Amendment 4 on annual reporting. First, I welcome the amendment, which very much responds to the debate in Committee. Also, to pick up the point made by the noble Lord, Lord Moynihan, the last reporting period ends on 31 December 2022. There is a practical reason for that: I understand that the organising committee will not continue after that date. However, in relation to the legacy, as he pointed out, particularly in relation to sport, physical health and well-being, the work that has to be done will go on for a period of years after the Games. It seems sensible that—whether by invitation or the organising committee formally handing it over—the city council has a responsibility for ensuring that the legacy continues. I do not quite know how that should be done, but a statement from the Minister, today or at Third Reading, ensuring that the city council is expected to continue the work on legacy and to report on a regular basis, would be very helpful.

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Moved by

[Lord Hunt of Kings Heath]

2: Clause 1, page 1, line 11, at end insert—
“(2A) The Secretary of State must provide by regulations for local authorities—(a) to raise a hotel occupancy levy for the duration of the Birmingham Commonwealth Games in the United Kingdom; and(b) to provide financial assistance equivalent to the proceeds of the levy, after costs of administration, to the Organising Committee for the purpose of delivering the Games.(2B) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.(2C) If a draft of an instrument containing regulations under this section would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.”

[Lord Hunt of Kings Heath]

My Lords, in moving Amendment 2, I will also speak to Amendment 7, to which I have added my name. I must apologise for not being able to be here in Committee. I am indebted to my noble friend Lord Rooker for raising a number of very important matters, to which I now wish to return.

Like every other noble Lord who has spoken, I am right behind these Games and feel that they will give huge advantage and impetus to the city of Birmingham and the West Midlands in many ways. However, a financial commitment is clearly involved. The Minister confirmed in Committee an investment of £778 million. This was to be split 75:25 between the Government and Birmingham City Council and a number of its key partners. It is clearly important that the city council pulls off agreements with key partners to defray much of the expenditure. The finances of the city council are, shall we say, fragile, and it would be disappointing if any resource had to be found from existing services to find the money that the city council needs to contribute.

That is why I have considerable interest in the idea of a hotel levy tax to help fund some aspects of the Games. I understand that Edinburgh is likely to be allowed to go ahead with such a tax, and the Core Cities Group is absolutely behind it. The noble Lord may be aware that we had a very good debate last week in Grand Committee on the report of the noble Lord, Lord Heseltine, on the role of cities in investing and allowing the economy to grow. In his report Empowering English Cities, he makes the point that the Government should allow local authorities, or “mayoral authorities”, as he describes them, to,

“raise local taxes and charges. These … include vehicle excise duty, airport passenger duty, tourist tax and local cultural admission charges. With appropriate local exclusions, it is ludicrous for British tourists to pay to visit historic collections and buildings abroad while millions of visitors to this country enjoy free access”.

I will not go into the whole of his argument. The point is that there is some support for allowing local authorities to raise local taxes in the way he describes. Hotel taxes are quite accepted in many parts of the world. As the right reverend Prelate the Bishop of Birmingham said in Committee, a £1 a night tax for a three-year period could be expected to bring in £4.5 million to £5 million a year.

In Committee, the Minister did not exactly embrace this as enthusiastically, as I would have wished, but he referred us to a report on tourism tariffs by the all-party parliamentary group, which has expressed some reservations about the likely impact of a long-term tax having a positive impact on tourism infrastructure. That report concluded:

“Further studies need to be commissioned on the economic impact and viability of a tourist tax”.


I fully accept that. We are at the beginning of exploring such a concept. The argument I put to the Minister is that we have a heaven-sent opportunity to try a pilot in Birmingham to see how it works. We hope it would raise resources towards the Games. We would see what impact it had on the hotel market and the economy of the city as a whole. I cannot see what there is to lose in allowing the city council to be a pilot in those circumstances. It does not commit the Government to the principle for all local authorities in the future, but says that they are prepared to see whether a hotel tax is feasible, does not produce negative impacts and would be of immense help to Birmingham. There are two versions, if you like, of this idea: my amendment, which is a requirement on the Secretary of State to essentially bring forward a scheme, and my noble friend’s amendment, which asks the Government to look at the feasibility and come forward with a report.

In the end, it is important for future Commonwealth Games that the financial viability of these Games works out effectively for the host city. One reason why Birmingham had to take this on at short notice was the financial difficulties in the original host city. I know that the Commonwealth Games Federation is very interested in the concept of low-cost Games; indeed, the organisation of these Games is consistent with the federation’s desire to keep costs at the lowest level possible commensurate with a quality Games. All that needs to be supported. All I ask is, to ensure that that undue burden does not fall on the city of Birmingham and local services, the council is given an opportunity, as it wants, to try out a hotel tax and make a contribution to the cost. I beg to move.

[Baroness Neville-Rolfe (Con)]

My Lords, I rise to express some concerns about the amendments tabled by the noble Lords, Lord Hunt of Kings Heath and Lord Griffiths of Burry Port. I am sorry that I was not able to speak at Second Reading, as I am a great supporter of Birmingham, which is a brilliant, vibrant and enterprising city, and a great supporter of the Commonwealth Games. I remember the opening ceremony of the Glasgow Games, which I was lucky enough to attend as a Business Minister, with great nostalgia. We all remember those Scottie dogs. On a more serious point, I remember the benefit the Games brought to Glasgow, and indeed to UK plc. As your Lordships can imagine, I am therefore a huge supporter of the Birmingham Commonwealth Games. We are right to take the plunge, even though we have had less time than usual to prepare, because, as the noble Lord, Lord Rooker, kindly explained in Committee, we are taking over the Games planned for Durban.

Clearly, hosting the Games is a financial challenge, but I believe the Government have gone about this in a sensible way, and that the 75:25 split between central government on the one hand and Birmingham City Council and its partners on the other is fair. The Games will be a huge boost for the local economy and the worldwide reputation of the Midlands, and of Birmingham in particular. I should mention my interest as a director of Secure Trust Bank, which is headquartered in Solihull.

However—this is my concern—I am not a supporter of a hotel occupancy levy, even on an experimental basis, at a low rate, and for a good purpose. It would be a new form of taxation, and new taxes should not be introduced or even mooted without great care and consideration of the financial and administrative costs, any perverse effects and, equally important, the way such attacks can morph into a new piggy bank for the Chancellor or set an unwelcome precedent. I say the same to those looking at the hotel tax in Edinburgh.

The hospitality and hotel sector is already challenged by the changes it will have to deal with post Brexit. Moreover, in the main, it is taxed highly compared with other countries that impose hotel occupancy levies. We have VAT at 20%, employment taxes, costly business rates—which we debate often—together with the joys of vigorous HMRC-style enforcement, which competing European hoteliers often avoid. There is also a level playing field issue: digital operators such as Airbnb take trade from hotels and ironically, they would appear to benefit relatively from the proposed hotel charge. Our hotel businesses, in Birmingham and elsewhere, are in many cases small businesses, and we should be reducing burdens on them, not increasing them.

Even bigger businesses, such as IHG, which is listed in the UK and, I understand, has 350 hotels, pose a problem. By chance, I met somebody from IHG today and asked them about the Bill. I understand that the vast majority of its hotels are franchised, often to small business people and family enterprises.

So there is a problem. My noble friend has rightly promised more information on the Games budget, which I look forward to studying. However, I ask him to live up to the principles of fiscal rectitude and resist this new tax, however well argued in the context of the Bill.

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[Lord Hunt of Kings Heath]

My Lords, I am grateful to all noble Lords who have taken part in what has proved to be a spirited debate. We have taken quite a tour around the issues. The right reverend Prelate the Bishop of Birmingham said in Committee that a £1 charge might raise £4 million to £5 million per year; I do not think that a £1 tax will impact hugely on the economics of the hotel trade in Birmingham and, indeed, the West Midlands. To take my noble friend’s example of the Crowne Plaza, every day brings a new rate according to how the market operates; hotels are quite used to flexing the prices they charge.

Regarding uncompetitiveness, I suppose that one should acknowledge the Government’s efforts on behalf of the tourist trade in allowing the pound to collapse in the wake of their disastrous policies on Brexit. There are many factors, but the point made by my noble friend Lord Griffiths is that we know there are arguments both for and against a hotel tax. I do not seek to run away from that; my idea was simply that we have a great opportunity to try this out, not so much as the thin end of the wedge but as a pilot, so that we get, for once, some evidence-based policy. It would have been a good opportunity. The finances of Birmingham City Council show clearly that it has a difficult balance to strike. It wanted to run the Games, so it has had to give guarantees around budgetary control and having enough money. But, frankly, given the state of its finances, I would be concerned if it had to take money from reserves; I am not sure whether by 2020 there will be many reserves left in the kitty. It would be wrong for money to be taken out of service provision in order to fund it.

I am grateful to the Minister for what he said about the Treasury and the Government being prepared to listen to any arguments that the city council puts. The city council is now undertaking some detailed work, and that takes us quite some steps forward.

We should end on a constructive note, whereby, as I hear it, if the city council comes up with a really good argument about this, it will be listened to sympathetically. That is probably as far as I can take this, so I beg leave to withdraw the amendment.

Amendment 2 withdrawn.

Birmingham Commonwealth Games Bill [HL]

Lord Hunt of Kings Heath Excerpts

Tuesday 25th June 2019 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I welcome the Bill and the Minister’s opening statement. In view of the remarks I will make on health and well-being, I declare an interest as a member of the advisory board of Sweatcoin, a healthy walking app.

It was a great day when the Commonwealth Games Federation selected Birmingham as the host city in 2022. Congratulations are due to Ian Ward, the leader of the city council, to Birmingham as a whole, and to partners such as Andy Street, Mayor of the West Midlands, the West Midlands Combined Authority, the department the Minister speaks for and Commonwealth Games England. This is a fantastic opportunity for Birmingham and the West Midlands, which we need to grasp enthusiastically and with both hands, as the Minister said. The sports that will feature are in themselves very interesting, and the Commonwealth Games’ track record of ensuring that the Paralympic Games have equity with the other Games is to be commended and will be continued in Birmingham. Living half a mile from Edgbaston cricket ground, I also know that women’s cricket is being considered for a place in the final list of games. I hope that the Minister will use his best offices to encourage such a decision.

[Lord Ashton of Hyde]

It has been decided.

[Lord Hunt of Kings Heath]

My Lords, the Minister’s powers of persuasion are remarkable.

My one item of concern is that noble Lords have found it very difficult to get any briefing from the city council, the mayor or the West Midlands Combined Authority. I suspect that they have been told by the Minister’s department not to provide briefing. This is a great pity. We should ask for the leader of the city council and Andy Street to brief Members before we reach Committee. I have never known a Bill affecting a sector on which we have not had formal briefing from the people concerned. Frankly, it is very disappointing that we had to beg the organising committee for the paucity of information that we have received. If this is going to be the approach in the future, it worries me—because, goodness knows, we are here to help the Games be as successful as possible.

There are only two issues I wish to raise. The first is funding and the second is the question of legacy. In relation to funding, today the Minister announced what I understand to be the final budget figures for the Games, and confirmed the split as 75:25. Can the Minister explain where financial liability lies for ensuring that that resource is spent wisely, and who is responsible if there is a cost overrun? Since the organising committee is, as I think he said, a non-departmental public body, I assume that its responsibilities are covered by the department. But what happens to the money that is to be provided through the city council? I would be grateful if the Minister could provide some information.

It will strike those of us in particular who have observed Olympic Games that clearly, because Birmingham was a late entry after the failure of the original bid on financial grounds, the financial liabilities are pretty huge. Even a city the size of Birmingham is particularly vulnerable in relation to its current financial situation. It is a fact that only a few months ago it faced warnings that hosting the Commonwealth Games could bankrupt the city; an audit report by Grant Thornton revealed an £84 million hole in its budget, at a time when vast sums of its emergency reserves had been spent. We know from newspaper cuttings that the West Midlands Combined Authority has said that the lack of a secure funding plan is:

“The most significant risk regarding the Commonwealth Games”.


I realise that that is partly in relation to the budgetary figure that the Minister has announced today, but it is in part based on the vulnerability of Birmingham City Council’s finances. It is reasonable for us to ask the Minister to spell out what he considers to be the impact on Birmingham City Council’s finances before your Lordships give the Bill their approval.

I turn to the legacy. Clearly, the Games are to be enjoyed in the moment—that is what they are all about—but legacy is important, too. It is not just the use of the stadia after the events but the environmental regeneration and, I hope to persuade the House, the health and well-being of the people of Birmingham and the West Midlands. We know that legacy was very important in relation to the London Olympics. They were a fantastic and very successful Games, and a lot of their legacy has been successfully undertaken. But, in relation to participation in sports and well-being, I do not think that the organisers have achieved what they set out to achieve. I really hope that we learn those lessons and translate them into a plan for Birmingham that will help us to make a real impact on people’s health and well-being.

[Lord Campbell of Pittenweem (LD)]

I am most grateful to the noble Lord for giving way. Unfortunately, I have a prior engagement so I could not fulfil all the obligations necessary were I to make a speech. But I most certainly wish to support not only the fact of the Games and the legislation but the point that the noble Lord has just made about participation. Using the exploits of those who are successful, there is every opportunity to encourage people to take up the myriad sports that will be encompassed. I would like to hear from the organising committee just how much effort will be put into participation, along with infrastructure and the other things mentioned by the noble Lord.

[Lord Hunt of Kings Heath]

My Lords, I do not think that the noble Lord was really allowed to do that—but it was a very helpful intervention none the less. I will come to that point in a moment. This is why it is a great pity that we were not offered a briefing with people from the city to see, from their eyes and faces, whether they really are committed to the kind of legacy that the noble Lord has just put forward.

In relation to legacy, I will ask the Minister questions on three areas. The first is in relation to housing. I understand that there are ambitious plans to redevelop the athletes’ village in Perry Barr into 1,400 homes for local people, which will in turn encourage other housebuilding in the area as well. That is very welcome and much needed. However, the allegation has been made that only a very small percentage of those homes will be either affordable or for social housing. Given that this is a major infrastructure project, we are entitled to know exactly what the figures are. I would want to amend the Bill to make sure that the percentage of social and affordable housing was a decent proportion. That needs to be an important legacy.

I come to the noble Lord’s question. Much though I love Birmingham, we are not the healthiest community in the country. The improvement in overall health has levelled off. There is a big gap between the richest and poorest in the city, and we have one of the highest levels of obesity in the country as a whole. NHS Digital figures show that more than one in four children who finished primary school in Birmingham in 2017-18 were obese—25%, a massive number—of whom 6.5% were severely obese. In addition, 15% of year 6 children were overweight. That means that 41% of Birmingham children are unhealthily overweight when they finish primary school, which is a frankly shocking figure. As someone concerned about health in the city, I know how difficult it will be to deal with the impact of that in 20 or 30 years’ time.

If anything lasting is to come out of the Commonwealth Games, we must surely have a concerted programme to encourage healthier lifestyles, including participation not only in sport because of the relationship between what kids will see in the Commonwealth Games and what they can enjoy, but in activity more generally. I understand that work streams within the organising committee are looking at this, but it is not unreasonable to ask the Minister to ensure that, before we reach the end of the Bill in this House, we see a concerted plan for how we can use the Games to improve the health and well-being of young people, alongside a budget to make it happen.

These Games will be wonderful. It is a great opportunity for my city and the West Midlands. I know that we are going to really enjoy it, but I hope that, at the end of the day, we also see a lasting legacy for the people of Birmingham.

Social Media: Online Anonymity

Lord Hunt of Kings Heath Excerpts

Wednesday 6th February 2019 Lords Chamber

[Lord Ashton of Hyde]

Regarding the first part of the noble Lord’s question, we are supporting the Digital Public Contact, which will deliver a single online home for policing and provide a secure digital channel for the public to upload evidential material in a digital format. I have explained what we are doing with the College of Policing.

As for the second part of the noble Lord’s question, my noble friend the Home Office Minister is sitting next to me and I am sure has listened to his point.

[Lord Hunt of Kings Heath (Lab)]

My Lords, are the Government really prepared to take these companies on? I pray in aid the Government’s approach to getting them to pay proper tax in this country. Despite the huffing and puffing we have heard from the Chancellor, no action has been taken. Can the Minister assure me that the Government are prepared to take them on?

[Lord Ashton of Hyde]

In the area that we are responsible for, regarding online harms and safety, we are. As far as tax is concerned, that is a different matter and I do not have the responsibility for it. However, I am sure that the Chancellor will listen to the noble Lord’s views.

Gambling: Children

Lord Hunt of Kings Heath Excerpts

Tuesday 15th January 2019 Lords Chamber

[Lord Ashton of Hyde]

My Lords, I am glad that normally my noble friend does not ban things without the correct amount of evidence. The issue here is that there is actually not conclusive evidence on the harms that this does. We are of course aware that there is certain evidence out there, and we are commissioning more. GambleAware is going to look at the influence and extent of online advertising and the effect that it has. If there are clear lessons to be learned, we will take action on that.

[Lord Hunt of Kings Heath (Lab)]

My Lords, is the Minister aware that there are games aimed at children that, although not strictly classified as gambling, actually encourage them into gambling habits? There are also games like mystery boxes that essentially are open to children and could be considered as gambling. Surely we need a much more proactive approach to doing something about this.

[Lord Ashton of Hyde]

My Lords, that is exactly why the Gambling Commission is consulting on requiring age verification before allowing free-to-play demo games to be downloaded. However, that will apply only to games hosted by gambling operators. We are aware of the problem of games and are waiting for GambleAware to do its consultation, and we will certainly take the issue that the noble Lord has raised into account.