Birmingham Commonwealth Games Bill [Lords]

Nigel Huddleston Excerpts

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

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

I beg to move, That the Bill be now read a Second time.

Today, on Commonwealth Day, I rise to open the Second Reading debate on the Commonwealth games Bill. The 2022 games, held in Birmingham, will be the biggest sporting and cultural event that the city and the region have ever seen. With an estimated TV audience of 1.5 billion people, it will showcase Birmingham, the west midlands and the entire country as an amazing place to live, work, study, visit and do business. It will coincide with the platinum jubilee and Festival of Britain, crowning a year of celebration. It will be the most inclusive Commonwealth games in history. For the first time, a major multi-sport event will feature more women’s than men’s medal events, along with the largest ever integrated para-sports programme.

The benefits of the games will be felt for many years to come. It will accelerate new housing, create new jobs and provide improved transport and new community sports facilities for the people of the west midlands. There will be a new Commonwealth games village, supported by £165 million of Government funding, which will support the long-term regeneration of Perry Barr. A £70 million refurbishment of the Alexander stadium will turn it into a world-class athletics venue, along with new community sports facilities, and we are building a brand new aquatics centre in Sandwell, the site of which I had the pleasure of visiting only a couple of weeks ago. I saw how that development is already having a positive impact on the local economy, with anticipation building to welcome some of the world’s best swimmers and divers. A world-class leisure centre will also leave a legacy for decades to come. It was fantastic to hear about these plans and to see the palpable excitement of local school children.

However, the Commonwealth games is not just about sport. This will be a global games, kicked off with Her Majesty the Queen’s baton relay. It will be accompanied by a vibrant cultural programme that will showcase the best cultural artists from across the city, the region and the Commonwealth. We will see a huge programme of visits, with Heads of Government arriving from all over the Commonwealth.

[Julian Knight (Solihull) (Con)]

The Minister is correct in identifying the Commonwealth games as an opportunity to rejuvenate the Commonwealth family and large parts of Britain’s second city, but does he share my concerns about some of the overspending to do with the village by the local council and the extra complexities caused by the demolition of the Perry Barr flyover, which experts say will not impact traffic flows at all? We want Birmingham 2022 to have the same transformative effect as Manchester did, not the financial hangover—for those old enough to remember it—of Montreal in 1976.

[Nigel Huddleston]

I thank the Chair of the Digital, Culture, Media and Sport Committee for those comments. He is aware that we are having these games in record time—considerably shorter than the usual seven years—but we are conscious of that in terms of cost containment, because we are not building new facilities from scratch, or not all of them, and that has helped with the finances.

All the stakeholders and all the partners are well aware of their financial responsibilities, and we are working with them. I shall address some of the transport concerns and the flyover issues later, but again we are working with all the partners involved to make sure we can come to a suitable outcome.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I thank my hon. Friend very much for giving way on what I think is his first outing at the Dispatch Box, which is already going extremely well. As he would imagine, we are very much looking forward to the games coming to the royal town of Sutton Coldfield, and in particular to the appearance of part of them in the Royal Sutton park.

May I, however, emphasise the importance of the point made by our hon. Friend the Chairman of the Select Committee? The Government, the Mayor and the West Midlands authority have been generous and very supportive on the financial side. While I do have some sympathy with Birmingham City Council, it is essential that my hon. Friend, on behalf of the Government, makes it absolutely clear that it must show greater financial control.

A particular example has been mentioned by our hon. Friend, but there are other worries to do with contingency funding. Obviously, I expect the Government to be generous and supportive, but Birmingham City Council must show financial rigour, which has not been a feature of that council. If it does not do so, I hope the Minister will make it clear that the Government will not tolerate any question of failure in these games, and that Birmingham City Council will be removed from the management of them if it does not demonstrate such control.

[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]

I thank the right hon. Member for his comments. Indeed, I think we have seen a spirit of cross-party co-operation already and that we will continue to see it throughout the delivery of the games and beyond. We are absolutely seeing that on both sides of the Chamber in both Houses. Long may that continue—I will certainly play my part in ensuring that that is the case. However, as my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) mentioned, that does not mean that we should not hold all stakeholders to account on the promises they have made, and we should continue to do so.

We are expecting Birmingham 2022 to create 41,000 games-time roles, and a procurement spend of about £350 million, from which local and regional government suppliers will all benefit.

[Craig Tracey (North Warwickshire) (Con)]

There is already a lot of excitement about the games in my constituency, particularly in the local schools, but one worry is that because we are not actually hosting an event—the Minister is touching on the opportunities of that—we might not get the same opportunities in our local area. Can he assure us that those opportunities will be opened up to people across the whole of the west midlands, particularly those in North Warwickshire and Bedworth?

[Nigel Huddleston]

I thank my hon. Friend for those comments; as a west midlands MP myself, I have some skin in the game as well. I can give him those assurances: it is absolutely the intention that the benefits of the games —in the run-up, during the construction and from the legacy—be felt throughout the entire west midlands and indeed the country.

On procurement, anybody can sign up to birmingham2022.com; businesses can sign up to the business portal to have the opportunity to bid for many of the procurement opportunities. A whole host of other opportunities to do with legacy will be felt right across the west midlands.

[Edward Timpson (Eddisbury) (Con)]

One of the reasons why the Manchester Commonwealth games in 2002 was so successful is that it took the best from the Sydney Olympics and transferred that to Manchester, particularly on volunteering and bringing the whole city together. We also saw that in London 2012. Is my hon. Friend making sure that we also learn from the central importance of bringing the city together through volunteering, and that right across the west midlands people will feel that they are connected to the Commonwealth games?

[Nigel Huddleston]

Absolutely—volunteering is at the heart of these games; it always has been and I am sure always will be. We saw that in the fantastic Glasgow Commonwealth games, and indeed in the Olympic games. We are expecting around 10,000 volunteers, perhaps substantially more, and excitement is already building, particularly among schoolchildren in the region, about the opportunities to participate. More news about those opportunities will be coming in due course.

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the Minister on getting his position; I look forward to his contributions on many occasions, all positive, in this House.

Does the Minister agree that the exclusion of shooting sports from Birmingham 2022 will have a negative impact? The United Kingdom of Great Britain and Northern Ireland has always excelled at shooting, and Commonwealth countries have followed the United Kingdom’s lead in that. Does the Minister share my disappointment that those in that most law-abiding and responsible section of the community have been excluded? Can the Minister confirm that his job in the future, if he still has this position—I hope he does—will be to ensure that shooting sports are included in the next Commonwealth games?

[Nigel Huddleston]

I thank the hon. Gentleman for intervening. It would not be a debate without his intervention; I am just surprised that he was not first.

On the shooting championship, I think we have a reasonable compromise that everybody—or most people—are quite happy with. The Commonwealth games are happening in summer 2022, and the championships for shooting and archery will take place in the January. The events will be separate, but at the end of the games there will be a Commonwealth sport medal table. I think that is a reasonable conclusion to what has been quite a challenging situation; I do not know whether it will set a precedent for future games, but I think that in these particular circumstances we have come to a reasonable conclusion.

[Julian Knight]

Part of the arrangement made with India on shooting is that we now have women’s T20 cricket in the Commonwealth games, and I am sure my hon. Friend will welcome that. There is a great deal of excitement in my constituency and around the west midlands about making such a fantastic mark in sport.

[Nigel Huddleston]

Again, I could not agree more. As I said at the beginning of my remarks, it is fantastic that we have more women’s games than men’s in the Commonwealth games. That is a first.

[Mark Pawsey (Rugby) (Con)]

On the subject of specific sports, the Minister will share my pleasure that seven-a-side rugby is a fundamental part of the Commonwealth games, with games being played at the Coventry stadium. Does he agree that it will be great to see those players coming to the birthplace of the game during the tournament?

[Nigel Huddleston]

Indeed, there are many fantastic places around the west midlands where we can—

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

rose—

[Nigel Huddleston]

We are going to have a game of sport bingo here, I think.

[Mr Mahmood]

I thank the Minister for giving way. We have just sent to Pakistan an England kabaddi team to play in the competition there. Will he consider in the future introducing kabaddi as a national sport here as well?

[Nigel Huddleston]

I am afraid the hon. Gentleman is giving me powers I do not have. He knows that these decisions are made elsewhere, but I am sure he will continue to make his case. He has already made it to me personally and he has now made it again in the Chamber. I will continue with my speech for a few moments now.

The Birmingham Commonwealth games will have been successfully delivered in a much shorter time than other games: in just four and a half years, rather than the typical seven. Just as for the London 2012 Olympic games, a pre-games Bill is essential if we are to support the successful delivery of such a landmark event. On that occasion, the House came together to approve a vital Bill. I am sure that the Birmingham Commonwealth Games Bill will be no different. The Bill contains four important measures, the first of which relates to transport.

Putting in place effective transport provision is a crucial part of any major sporting event. I know that Andy Street, the Mayor of the west midlands combined authority, is strongly focused on that so that athletes, officials and the 10,000 volunteers can get to their events and shifts on time, and, crucially, so that residents can also move around easily. The measures will make sure we can do just that. They will allow temporary changes to road use where needed, so that anyone travelling to and from the games, and around the region, can do so safely and with minimal disruption.

[John Spellar (Warley) (Lab)]

Many of the facilities, for example the aquatic centre in Smethwick, will be used after the games have ended. Is there not a need for consideration of longer-term changes to transport arrangements? Will they be included in the legacy plans to ensure such facilities are properly used and enjoyed in the future?

[Nigel Huddleston]

The right hon. Gentleman makes a fair point. The integration of transport and the co-operation of all stakeholders in the run-up to the games, as well as during and after, is being considered by the organising committee and other stakeholders, including the Department for Transport. That is a key factor that we hope will ensure the legacy of the games.

The Bill will also set a statutory basis for a games transport plan and provide the Secretary of State with a power of direction to safeguard the delivery of essential road regulation measures. I can assure the House that any road regulation measures will be kept to a minimum, so we can run a safe and efficient games. Local residents and businesses will be consulted and kept informed of the proposals.

Secondly, the Bill will work to protect the commercial rights of those who invest in the games as sponsors. Securing commercial sponsorship is critical to staging a world-class event and maintaining investment in the games. That can be achieved only when the rights of sponsors are protected. The Bill introduces measures, similar to those for the Olympic games in London and the Commonwealth games in Glasgow, to protect against unauthorised association. That is not designed to stop the many local residents and community groups who will want to show their support for the games; in fact, the organising committee wants to make it easier for them. Last week, it launched its new community programme, United by Birmingham 2022. Community projects that share the vision and mission of the games can apply to join.

The provisions are instead aimed at stopping commercial infringements, where a business is claiming an association with the games without making the commitments required of an authorised business. The Bill places a duty on the organising committee to produce guidance to ensure that everyone is clear about what activity may constitute an infringement. It introduces restrictions to advertising and trading in and around games locations. Again, they are in line with the approach of previous games. The restrictions will ensure that trading does not obstruct easy movement in the vicinity of games locations and will provide a consistent approach at each venue.

Regulations will set out the detail of when and where the temporary and proportionate restrictions will apply. They will be driven by the particular usage of each games location. The organising committee will be required to produce guidance on the effect of the advertising and trading restrictions, which local authorities will share with traders that may be affected. That will help to ensure that traders likely to be affected will be aware of what they need to do.

Thirdly, there are provisions on ticket touting. There is a role for a responsible secondary ticketing market for those who are genuinely no longer able to attend events, but professional touts are a scourge on any major event. They make tickets more expensive and make it harder for fans to see the events they love. We have already legislated to ensure there is a responsible market, from strengthening requirements on secondary platforms to banning touts from using bots to dodge security measures. Those measures received the support of both sides of the House. These are robust powers that stop online touts hoovering up large numbers of tickets for profit and help consumers to make informed choices when buying tickets on the secondary market. However, these games are a global, multi-sport event underpinned by significant public investment, so we want to go even further so that fans can buy tickets, confident that they will not be funding unscrupulous touts. That is vital if we are to act as a powerful deterrent to touts and protect the integrity of the games. Only those vendors authorised to sell tickets by the Birmingham 2022 organising committee will be permitted to do so, meaning that buying tickets will be clear, simple and affordable for genuine fans.

The Bill will create an offence that will apply to any unauthorised attempt to sell tickets for profit in the course of business or in a public place. Over 1 million tickets will be available for games events.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

The measures that the Minister is announcing sound as though they will go some way towards achieving what we all want: to ensure that tickets end up in the hands of the fans at the price intended, not at vastly inflated prices. To ensure the enforcement of what he hopes to achieve, will he consider extra funding for National Trading Standards so that it has the resources to enforce what he has put in the Bill?

[Nigel Huddleston]

I thank the hon. Member for that point and praise her for the work that she has done on unscrupulous secondary ticket sales. She makes a fair point. The dynamics and details of sales and enforcement relating to tickets have still to be determined, and I am sure that everybody has heard her comments.

The organising committee’s ticketing strategy will be underpinned by the values of fairness, affordability and accessibility. That will help to ensure that everyone who wants to experience the games will have an opportunity to do so.

Finally, the Bill contains measures on the funding of, and reporting on, the games. The organising committee has been established as a non-departmental public body. It is subject to standard controls on public bodies and will provide regular budgetary and financial updates to Parliament over the life cycle of the games. Indeed, the organising committee’s first annual report and accounts were laid in Parliament in September last year, and the report for the year 2019-20 is due to be published this coming July.

The Bill contains a technical measure that makes sure that financial assistance given to the organising committee continues to comply with financial propriety rules. Alongside that, the Bill also requires the organising committee to produce an annual report on its delivery of the games. However, those interested in the delivery of the games will not need to wait for a statutory report. The organising committee already produces quarterly updates on its delivery; the next one will be available shortly and will be published on its website. Indeed, I met the CEO of the organising committee, Ian Reid, during my recent visit to Birmingham and came away with a really strong sense of confidence that the games will be a huge success.

[Fay Jones (Brecon and Radnorshire) (Con)]

My hon. Friend probably already knows that people who exercise for 150 minutes a week are likely to live seven years longer than more inactive people. In my area in mid-Wales, my local health board says that only 50% of our young people are reaching that goal. Does he agree that with so many people inspired to get active after the Commonwealth games, it will be vital to meeting our public health challenge?

[Nigel Huddleston]

I thank my hon. Friend for those comments. She hits on a very important part of the games’ purpose, its legacy, and indeed, the Government’s sport strategy. We will be working much more on the issues that she raises to encourage more young people to participate in sport at the right level. The Youth Sport Trust and many other bodies play a key role in delivering that, as do our schools. Those of us who are parents have a responsibility too, but the games are a key chance to make sure that we double down on those opportunities and inspire young children to get involved in sport at a very early age, with the huge mental health and physical health benefits that come with that.

[Mr Mitchell]

Inspired by my hon. Friend the Member for Brecon and Radnorshire (Fay Jones), I thought I would rise to my feet again. Before the Minister finishes, will he say a word or two more about the issue of legacy, which is so important? I had the privilege of sitting on Lord Seb Coe’s International Inspiration, which took forward the legacy from the Olympic games in London. Will he confirm that legacy is about international, national and local objectives and that it is a very high priority for the Government to build on Britain’s experience under Lord Coe’s leadership?

[Nigel Huddleston]

Legacy planning is already taking place. There is already a team within the organising committee focused on legacy, not just the physical legacy, important though that is—the physical assets, the new sports facilities, the new village and homes—but the long-lasting legacy in terms of inspiring people to travel and invest in the west midlands. The tourism, trade and investment opportunities will be a core part of this. We have learned the lessons, both the positive lessons and where we can improve, of the Olympic games and the games in Glasgow, and I am confident that we will continue to make those very important legacy decisions.

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

Does the Minister agree that one way we should evaluate the success and eventual legacy of the games is by how successful they are at getting jobs, skills and volunteering opportunities to those furthest from the world of work? He will know that my constituency has the highest rate of unemployment in the country and that many other Birmingham constituencies are afflicted with the awful problem of long-term, systemic worklessness. The games are an incredibly important opportunity to turn this around. Does he agree that this must be front and centre of all decisions when it comes to the jobs and skills the games will provide?

[Nigel Huddleston]

I agree with the hon. Lady. These issues were raised when the Lords considered the Bill. Front and centre of the social values charter in the Bill are things such as skills, opportunity, sustainability and a host of other important aspects. We must ensure these live not just when the games happen but for many years after, and I am sure we will debate this matter much further. I would encourage all colleagues to visit the organising committee. They would be very welcome. When I went up, I left inspired and confident that those issues—the longevity, the focus on skills, the opportunities for regeneration—were front of mind for everybody involved.

In conclusion, the Bill will help to deliver a Commonwealth games where transport keeps moving, commercial rights are protected and fans can be confident about the tickets they buy. It is critical that we get this right because the Commonwealth games are an important milestone for the region and the country. Just as we did in London, we will show the world that we are a hospitable, warm and tolerant country that is proud to host world-class sport, and we will leave a lasting legacy for Birmingham, the west midlands and the whole UK. That is what the Bill will do, and I commend it to the House.

--- 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.

Birmingham Commonwealth Games Bill [ Lords ]

Nigel Huddleston Excerpts

Committee stage & Committee Debate: House of Commons
Tuesday 17th March 2020 Public Bill Committees

[The Chair]

We are now sitting in public, and the proceedings are being broadcast. Before we begin, I have a few preliminary points to make. The most important is: happy St Patrick’s day. Please switch electronic devices to silent. Tea and coffee are not allowed during sittings.

We will first consider the programme motion on the amendment paper. We will then consider a motion to enable the reporting of written evidence for publication. I call the Minister to move the programme motion, which was agreed by the Programming Sub-Committee yesterday.

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

I beg to move,

That—

(1) the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 17 March) meet—

(a) at 2.00 pm on Tuesday 17 March;

(b) at 11.30 am and 2.00 pm on Thursday 19 March;

(c) at 9.25 am and 2.00 pm on Tuesday 24 March;

(2) proceedings on consideration of the Bill in Committee shall be taken in the following order: Clauses 1 to 5; Schedule 1; Clauses 6 to 10; Schedule 2; Clauses 11 to 20; Schedule 3; Clauses 21 to 34; new Clauses; new Schedules; remaining proceedings on the Bill;

(3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Tuesday 24 March.

It is a pleasure to serve under your chairmanship, Ms McDonagh. You are a vision of green today.

Resolved,

That, subject to the discretion of the Chair, any written evidence received by the Committee shall be reported to the House for publication.—(Nigel Huddleston.)

[The Chair]

Copies of written evidence that the Committee receives will be made available in the Committee room. We will now begin line-by-line consideration of the Bill. The selection list for today’s sitting is available in the room. It shows the order in which clauses, schedules and new clauses will be debated.

Clauses 1 to 5 ordered to stand part of the Bill.

Schedule 1 agreed to.

Clauses 6 to 10 ordered to stand part of the Bill.

Schedule 2 agreed to.

Clauses 11 to 20 ordered to stand part of the Bill.

Schedule 3 agreed to.

Clauses 21 to 33 ordered to stand part of the Bill.

Clause 34

Short title

[Nigel Huddleston]

I beg to move amendment 1, in clause 34, page 20, line 16, leave out subsection (2).

I have rarely been in a Committee where the Chair has spoken more than the Committee members. We will see how that goes today.

For Bills starting in the House of Lords, a privilege amendment is included to recognise the right or privileges of this place to control any charges on the people and on public funds. It is standard practice to remove such amendments at this stage of a Bill’s passage in the House of Commons.

Amendment 1 agreed to.

Clause 34, as amended, ordered to stand part of the Bill.

New Clause 1

Local Commonwealth Games levy

“(1) The Secretary of State must make regulations to provide the powers necessary for the relevant local authorities to levy charges on hotel occupancy and short-term rentals in their respective areas for the duration of the Birmingham Commonwealth Games in the United Kingdom.

(2) The regulations must define ‘relevant local authorities’ to include the local authorities for each Games location.”—(Catherine West.)

This new clause would provide for money to be raised during the Games by the relevant local authorities charging a levy on hotel occupancy and short term rentals.

Brought up, and read the First time.

[Catherine West (Hornsey and Wood Green) (Lab)]

I beg to move, That the clause be read a Second time.

You do look splendid in your green today, Ms McDonagh. I wish all Committee members a happy St Patrick’s day. I want to speak to all four new clauses at the same time. Am I permitted to do that?

[Catherine West]

Thank you for that clarification.

Given that we have sped through all the clauses in the Bill so quickly, it will come as no surprise that the Opposition are delighted to welcome the prospect of the Commonwealth games in 2022. With the big question mark over the Olympic games this morning, let us hope that, by 2022, we can all be enjoying the Commonwealth games. We are all thinking about Japan and the international organising committee in these tough times.

I welcome the fact that the Government have looked at the broad question of a carbon-neutral games, which was the subject of my first question to the Minister in departmental questions the week before last, but I want to highlight two issues on the environment.

The first is the question of the bus provider, National Express. On our visit to Birmingham last week, I was concerned to learn that it is considering keeping diesel. Given that we are being so accommodating on the Bill, can the Minister touch on the conversations the Department is having with the provider around the carbon-neutral games? That is not directly relevant to my new clause, but I wanted to introduce it, because while it would be easy to see this as a national project—indeed, it is—there are also many things that could come out of it for the region. I am concerned that the fleet will still be diesel, when it could be electric, given the two-year run-in to the games. The Minister may not be able to respond now, but if he would like to write to me later, I would be grateful for his views on what progress is being made towards a carbon-neutral games.

Secondly, there has been a lot of debate about the environment as it relates to the Perry Barr flyover, which my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) would be keen for us to mention in Committee. Even though that relates to the Lords element of proceedings, I know the Minister has listened carefully to the consideration of the issues involved. Although this is mainly a matter for local government because it pertains to highways, I still believe it is important to put it on record.

New clause 1 was spoken to on Second Reading by my hon. Friend the Member for Birmingham, Edgbaston, who of course has a massive interest in the Commonwealth games because there is going to be cricket there—we are all very pleased about that. She and others in the region have looked on a cross-party basis at the question of a hotel levy, and are encouraging the Government to seriously consider such a levy so that the region can have that little bit of extra funding. That is the question the new clause deals with, and I would be grateful if we could debate it now, so that we can hear what the Government’s prima facie view is.

We on the Opposition Benches accept that this is a new idea. A £1 a night per room levy was not, for example, applied to the Olympic games in Stratford, so the new clause seeks to introduce something new. However, we are also aware that. with a regional games such as this, there is an argument for a hotel levy to be spent exclusively in the region, in order to help tourism and to help the region in general pay for what is going to be quite an expensive project. I am sure that taxpayers in Birmingham and the midlands would want us to consider affordability at this stage of the Bill, so would the Minister enlighten us as to the Government’s thinking about a hotel levy?

[Nigel Huddleston]

I very much appreciate the comments made by the hon. Lady, and the tone that she and the Opposition parties have adopted towards the Bill to date. I completely agree with her earlier comment that, in these difficult times, the games are something we can all look forward to, and I appreciate the speed with which we have gone through the Bill in Committee so far. I will address some of her comments.

I am aware of the issues relating to the A34 highway scheme. I know there are strong views on it, both locally and in the House, and that local residents have petitioned the council and raised the prospect of a judicial review. Although this is indeed a decision for Birmingham City Council, as the authority responsible for the local road network and the wider regeneration of the Perry Barr area, those concerns need to be taken seriously, and I will be happy to continue my dialogue with the hon. Member for Birmingham, Perry Barr about that.

Regarding the Sprint routes, I understand that a decision has recently been taken to use zero-emission vehicles for the operation of Sprint, which in turn has increased the timescales for delivering the scheme because of the additional infrastructure requirements. The broader issue of climate change and sustainability is one that we all take seriously, as does the organising committee, and 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’s sports for climate action framework, which aims to combat climate change and raise global awareness and action. That is a first for the Commonwealth games, and represents a key commitment to work towards global climate change goals. The organising committee is also in the process of developing its sustainability strategy for the games, and has convened a local sustainability forum that is supported by many bodies, Government Departments and agencies, including the Department for Environment, Food and Rural Affairs and the Environment Agency.

I appreciate the hon. Lady’s comments relating to the proposals for a hotel tax, which is a hotly debated issue that has already been discussed in great detail during the Bill’s previous stages. There is constant dialogue between the Government and the council on all aspects of the games, including the budget. Birmingham City Council is absolutely committed to meeting its financial contribution to the games’ budget, and has published a plan for how it will do so without the need for a hotel tax. In any case, this Bill is not necessarily the appropriate vehicle, as it is not a money Bill and a statutory hotel tax is not necessary for the council to meet its share of the cost of the games, although I appreciate that the concept is much debated.

--- Later in debate ---

[Catherine West]

I am very pleased to respond to the Minister’s remarks. First, I welcome the fact that having a carbon-neutral games is a key value. I will push him later on by letter on the question of the provider and what efforts are being made to introduce the least polluting buses. To respond on the question of the Perry Barr flyover, the current cost is quite high for a local authority. I would seek a reassurance that, if the local authority is unable to cover that cost, the Government are able to step in. It does seem expensive, given residents feel they are getting back from the games, and there is a lot of opposition at the moment.

Moving on to the principle of new clause 1—the hotel levy—my hon. Friend the Member for Birmingham, Edgbaston and other local MPs in the west midlands and Birmingham city area make a valid point. While full VAT is charged on hotel stays, the Minister will agree that the Treasury is not famous for ensuring there is a trickle-down effect in regions. Will he have his officers look fully at whether there could be some kind of agreement whereby some of the VAT is more transparently redirected to the region, to offset the cost of putting the games on at a local level? Would he care to respond to those issues before we move on?

[Nigel Huddleston]

I am happy to continue the dialogue, and I commit to responding to the hon. Lady’s letter and the questions she raised.

Regarding any further location of taxes and VAT, I do not think we really have a mechanism for that in the UK. On the point about fundraising and ensuring that Birmingham and the west midlands receive adequate financial support to ensure that the games are successful—we are talking about more than £750 million of Government money going into the games—I will happily work with the hon. Lady to ensure she is comfortable that the west midlands are indeed getting a substantial proportion of Government expenditure for that.[Official Report, 19 March 2020, Vol. 673 c. 11MC.] I am happy to continue the dialogue with her.

[The Chair]

Does the shadow Minister want to push the new clause to a vote or to withdraw it?

[Catherine West]

I beg to move, That the clause be read a Second time.

The new clause deals with the living wage for Birmingham and the west midlands. As we heard on Second Reading, the living wage is popular in the region and has been pushed by campaigners and trade unions for quite a while. During a recent visit to Birmingham, I heard evidence from staff of the Trades Union Congress, and I understand that the living wage would be very welcome from the point of view of the workforce. For example, a number of people working in the leisure industry currently do not even receive the national minimum wage, let alone the real living wage. We know that the real living wage makes a huge difference to the lives of working people and that, if staff receive the living wage, they need only work one job, whereas many people—particularly women—on the minimum wage or less have to work two to three jobs, which puts enormous strain on their families and their mental health.

The new clause is very simple. It seeks to introduce the living wage for all staff directly employed in the running of and preparation for the games and for subcontractors. I thought about inviting the Living Wage Foundation to give evidence to the Committee, but I felt that, on balance, we all know what the living wage is and so did not need that evidence. Those of us who know members of the workforce who have gone from being on the minimum wage to being on the living wage know that it makes an enormous difference.

The new clause seeks to ensure that the prosperity that the games will bring—not only in July 2022, but in the run-up to the games—will have an uplift effect in the region. It aims not only to promote things such as women in construction, more apprenticeships and safety in the workforce and in the works going on in and around the region for the games, but to promote that concept as a legacy of the games. For example, we all want to see more grassroots sport as a result of the games. Introducing the living wage would push up the hourly rates of people working in the leisure industry, such as swimming and athletics teachers or coaches in the personal training industry. We would be doing an enormous service to not only sport and leisure in general, but, importantly, the region of Birmingham and the west midlands, which, as Members know, has the lowest level of accreditation in the UK.

[Nigel Huddleston]

I thank the hon. Lady for tabling the new clause. This issue has been raised several times during the Bill’s passage, and the Government share the intent to make sure that we become a higher-wage economy. I concur particularly with her comments on the hospitality and leisure sector. However, I am confident that the games are setting an excellent example on fair pay. As an arm’s length body, the Birmingham 2022 organising committee’s pay scales are set in line with civil service pay rates, and all direct employees of the organising committee are therefore paid above the Living Wage Foundation’s rates.

Of course, all organisations awarded games contracts will be required to pay at least the Government’s national living wage, which is set to receive its biggest cash increase ever, rising by 6.2% from 1 April 2020, which will mean a pay rise of almost £1,000 for around 2 million workers across the UK. As my right hon. Friend the Chancellor of the Exchequer said in his Budget speech last week, the Government are also targeting the national living wage reaching two thirds of median earnings by 2024, provided economic conditions allow. On current forecasts, that means a living wage of more than £10.50 per hour.

The Chancellor also announced that the national insurance threshold will be increased from £8,632 to £9,500 from April. Taken together, the changes to the national living wage, income tax and national insurance mean that someone working full time on the minimum wage will be more than £5,200 better off per year than in 2010.

Let us look at the wider picture of huge Government investment in Birmingham and the west midlands. Such investment will see thousands of jobs created and will lift skills and training opportunities across the region. Games partners continue to develop plans to maximise the employment, training and volunteering opportunities that the games will give rise to, ensuring lasting and meaningful benefits for those living and working in the region.

We should remember that the Birmingham 2022 games will be the first Commonwealth games with a social values charter. Organisations bidding for games contracts will be asked to demonstrate how they support delivery of the charter—for example, by promoting local employment opportunities and skills development. The games will provide a huge uplift to the local and regional economy and provide fantastic employment, training and skills development opportunities for local people and businesses. Although I understand the intent of the hon. Lady’s new clause, given what I have outlined, I ask her to withdraw it.

[Catherine West]

I accept the Minister’s arguments about the introduction of increases to the minimum wage, but I do not accept that it would be as good as having the living wage and living wage accreditation, with the uplift that that would give to the region as soon as the Bill is passed. I do not agree that the new clause should be withdrawn, but I do accept that I will have a further opportunity to raise this important matter during the passage of the Bill.

--- Later in debate ---

[Catherine West]

I beg to move, That the clause be read a Second time.

I am pleased to introduce this new clause, which deals with gambling advertising and the Commonwealth games. We all know that my hon. Friend the Member for Swansea East (Carolyn Harris) is a fierce campaigner on this question, as are others in the House, including the hon. Member for Aylesbury (Rob Butler). There is considerable concern in the House around gambling advertising, and I want to see that reflected in the Bill. I want gambling companies barred from sponsoring the games. I know it is unlikely that the organising committee will enter into an agreement with a gambling company, but it is important to have that in the Bill so that we can be sure that gambling companies will be responsible in how they proceed.

Gambling is a significant and harmful aspect of sport in general, and the NHS has recently opened a gambling clinic for 14-year-olds. The Minister and I have discussed the concerns in the House. We are pleased that the FA has decided that young people who want to watch football on their phones should not have to register with a gambling company first—that has now been stopped. That is down to the campaigning from expert Members in this House, and I want to see that apply to any sport. Because the Bill falls under the heading of sport, I want a specific pledge from the Minister to prevent any form of official gambling support. That would send a strong and notable signal that gambling in sport should be discouraged.

The Commonwealth games, with the 54 members of the Commonwealth, is an international phenomenon. It would be negative for young people watching the games to be bombarded with gambling messages. Although we have the issue of our 14-year-olds and other young people succumbing to the addiction of gambling, we would not want that to spread across any other Commonwealth country. I hope the Minister will look carefully at the new clause and advise us on how those values can be brought to the Commonwealth games.

[Nigel Huddleston]

I thank the hon. Lady for her comments. I know we will continue to debate issues of gambling with many Members from across the House, particularly as we review the Gambling Act 2005 as it relates specifically to new clause 3.

As hon. Members know, commercial revenue, including sponsorship, forms an important part of the games budget and will reduce the level of public sector investment that would otherwise be required for the games. Securing sponsorship and granting authorisations to associate with the games are matters for the Birmingham 2022 organising committee and Commonwealth Games Federation. Their negotiations with potential sponsors are continuing, with three sponsors announced to date: WLG Gowling, an international law firm; Gl Group, a recruitment services firm; and Longines, who will be the official timekeeper for the games. All potential sponsors will have to demonstrate their alignment with Birmingham 2022’s vision and mission, and an ongoing commitment to social values, as set out in the organising committee’s social values charter.

--- Later in debate ---

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

It is a pleasure to see you in the Chair, Ms McDonagh. May I also wish everyone a happy St Paddy’s day?

I rise to support new clause 4, in the name of the hon. Member for Hornsey and Wood Green. In keeping with this stage of the Bill, I will be relatively brief. We have seen from the decline in participation in many sports—notably cricket and others—that when live broadcast is moved from terrestrial TV to subscription TV, participation rates can plummet, and that sport is then affected in the medium and long term. The current issues surrounding the Six Nations coverage highlights that we need a much broader debate on this matter. In the meantime, I am happy to lend my support to the new clause to protect the games.

The SNP fully supports the Birmingham Commonwealth games. Everyone in Scotland was very proud of Glasgow’s Commonwealth games, and I hope the games have the same impact in Birmingham as they did in Glasgow. But I do have to note—as we always do—that the Glasgow games were delivered without any financial support from this place. I can sense that the hon. Member for Berwickshire, Roxburgh and Selkirk straining to tell me that this matter is devolved, and he would be right, but that cuts both ways. We had to go 10 rounds with the Treasury to secure any appropriate Barnett consequentials flowing from the London 2012 games and, prior to that, the Manchester Commonwealth games. We would appreciate that not being the case. We will table an amendment on Report to try to ensure that 100% Barnett consequentials are secured. That assurance has been given over the Dispatch Box, but we would feel a lot more secure if the commitment were part of the law of the land.

[Nigel Huddleston]

I thank Opposition Members for their comments. This topic will be hotly debated, and I know that the Digital, Culture, Media and Sport Committee is aware of these issues and concerns.

On the Government’s support for the games in Scotland, hosting major events is indeed, as the hon. Member for Paisley and Renfrewshire North acknowledged, a devolved matter, with responsible agencies in each of the devolved Administrations. Support from DCMS and UK Sport complements and aids the ambitions of Scotland, Wales and Northern Ireland in identifying and securing events across the whole UK. The UK Government also support Scotland, Wales and Northern Ireland in UK-wide matters, including the delivery of Government guarantees on reserved policies areas. The hon. Member mentioned the great success of the Glasgow games. I completely agree. The whole of Scotland can be very proud of those games, which I will mention further in a moment; they were an incredible success.

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—whichever device they choose. I have been assured that, as part of its digital strategy, the organising committee is looking to provide content on a diverse number of digital platforms, with a view to maximising audience and reach. As the Commonwealth games are a listed event, broadcasting rights must already be made available to the qualifying free-to-air terrestrial broadcasters on fair and reasonable terms. In any case, the listing regime ensures only that events are available to qualifying channels, and does not guarantee that an event will be broadcast by a free-to-air broadcaster.

Free-to-air channels have the opportunity to bid to show live coverage of group B events and have done so successfully in the past, as with the BBC’s live coverage of previous Commonwealth games held on the Gold Coast and in Glasgow. The Commonwealth games have been in group B since the list was put together in 1998 and have had excellent live coverage on free-to-air television, with 35 million domestic viewers in total for the Glasgow games. The event’s group B listing helps to enable extensive free-to-air coverage for the nation and allows the organising committee to agree live free-to-air coverage as it sees fit.

We believe that the current list strikes the appropriate balance. Reconsidering which group the Commonwealth games sit in would not be appropriate, as the organising committee is in the middle of a competitive commercial process with potential rights holders, and cannot pre-empt the outcome of those negotiations. I am sure hon. Members will appreciate that any change to the listed events regime at this time could therefore significantly and detrimentally affect the ongoing negotiations. However, I appreciate and share the spirit of the new clause, which aligns with the organising committee’s vision to ensure Birmingham 2022 is the games for everyone, with everyone having the opportunity to access and experience them, should they wish to do so.

In that vein, let me remind hon. Members that over a million tickets for games events will be available across 11 days of elite sport. Fairness, affordability and accessibility will be the central underpinnings of the organising committee’s ticketing strategy. I am therefore confident that there will be many ways for people to access and enjoy the games, whether on TV, mobile, computer screen, tablet or in person. Accordingly, I hope that the Committee can see that the new clause is not required, and that the hon. Member for Hornsey and Wood Green sees fit to withdraw her new clause.

[Catherine West]

I am pleased to sum up on new clause 4. I accept the Minister’s point that we are in the middle of a competitive tendering exercise, and I am happy to hold fire. However, I welcome the debate we have had, and it is important to have had it at this stage.

I also welcome the thoughts of the SNP spokesman—particularly his reference to the 35 million viewers who watched the games in Glasgow and to the Six Nations competition. I shadow declare an interest, with a Scotland rugby supporter in my household.

--- Later in debate ---

[Gavin Newlands]

On free-to-air television. I thank all Members present, even the hon. Member for Berwickshire, Roxburgh and Selkirk—he is in Hansard now, so he has had a mention. I thank everyone present, and I look forward to further robust debate on Report.

[Nigel Huddleston]

I thank all hon. Members for their participation today, and I thank everyone else involved. The speed of progress today should not be misinterpreted as lack of scrutiny. We have had intense scrutiny in the Chamber and outside, in the House of Lords and on Second Reading. As testament to the preparation of my team, I should say that hon. Members did not get to hear all the speeches I had in my folder today. Maybe I can get them out at some other point.

I thank everybody for their engagement and involvement with what we know will be a fantastic games; they are something we can look forward to in these challenging times, as sport can unite the nation. I thank everybody who has been involved in their development to date, including the stakeholders, the organising committee and the partners of the games. I thank the parliamentary staff, the Doorkeepers, the Clerks, hon. Members here today and the public observing. I particularly thank the team at DCMS, who have worked hard pulling the Bill together, and, of course, you, Ms McDonagh—the vision of green today.

Thank you to everybody involved. We will continue the robust debate on many of the important issues raised today. I do not dismiss them; they are all valid topics for debate. We have a shared intent and purpose, and I look forward to working with everybody involved in the coming weeks and months.

Question put and agreed to.

Bill, as amended, accordingly to be reported.

Birmingham Commonwealth Games Bill [Lords]

Nigel Huddleston Excerpts

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

I congratulate the Commonwealth team up in Birmingham as well as the excellent new shadow Minister for Sport—it is great to have another woman in that role. I wish my right hon. Friend the Member for Birmingham, Hodge Hill all the very best in the coming 12 months. What a wonderful opportunity these games are, if done properly, for the midlands.

[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.

[Alison McGovern]

I really must draw the Minister back. This is not a matter of party politicking; this is about whether we have food banks or not. Given what he has said, could he just answer the question about the actual real living wage that my right hon. Friend the Member for Birmingham, Hodge Hill just asked him? Does he believe that the organising committee will be able to accredit to the Living Wage Foundation and meet its standards or not?

[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.

[Alison McGovern]

Having listened to the case made by my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), I simply do not know why the Minister would not get to his feet and just say yes. This is not about some political to and fro; it is about the important distinction between what has been sold to people as a living wage and what is in fact a wage that is calculated on the basis of people being able to live on it. That is the difference; that is what we are arguing about. It is a simple choice: food banks or not. I think the answer is not.

The social values charter that the Minister mentions is welcome, if woolly. It is a good ambition, but it does not really commit the organising committee—it certainly does not commit them to enough, and it does not commit them to the specifics. People will judge the games by not only how successful they appear but the reality of their lives when they have been able to participate in them. As I withdraw the clause, with your leave, Madam Deputy Speaker, I say simply that this will not end here. We will not stop going on about this, because the money in people’s pockets is of the most profound importance. Until the Minister is able to make that commitment, we will go on, but I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 2

Local Commonwealth Games levy

‘(1) The Secretary of State must make regulations to provide the powers necessary for the relevant local authorities to levy charges on hotel occupancy and short-term rentals in their respective areas for the duration of the Birmingham Commonwealth Games in the United Kingdom.

(2) The regulations must define “relevant local authorities” to include the local authorities for each Games location.’—(Alison McGovern.)

This new clause would provide for money to be raised during the Games by the relevant local authorities charging a levy on hotel occupancy and short-term rentals.

Brought up, and read the First time.

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[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.

[Alison McGovern]

I want to stop the Minister at that point. He mentions the relative investment of the Treasury and the city council, but surely he accepts that the resources of those two bodies are not the same. We are trying to come up with proposals to help the city council and other authorities. Will he concede that the proposal is something that should be taken forward?

[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.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

Thanks to the miracle of modern technology, I have managed to elicit a direct response from the fabulous Mayor of the West Midlands to the suggestion that there is a black hole in his budget. Rather than test your patience with a long intervention, Madam Deputy Speaker, I shall reserve his comments for the House if I catch your eye on Third Reading.

[Nigel Huddleston]

I thank my right hon. Friend for that intervention and look forward to his contribution on Third Reading.

There should be no increase in Birmingham’s financial contribution. Although we recognise the additional pressures that local authorities are under in dealing with the covid-19 pandemic, central Government have already announced additional funding of £3.2 billion to support that.

All games partners continue to work closely together to ensure that any additional cost resulting from covid-19 can be absorbed in the current budget so as not to increase Birmingham’s financial contribution to the games, to which it has already committed without the need for a hotel tax. That close partnership and working relationship will ensure that we deliver a memorable games with lasting benefits in Birmingham and the west midlands. I therefore ask the hon. Member for Wirral South to withdraw the motion.

[Alison McGovern]

I thank the Minister for his comments, but as one of my hon. Friends has just pointed out, £1 is about half an hour’s parking. In the context of what we are talking about, the idea that that would massively dissuade people from a hotel stay would probably bear interrogation. However, this idea, similarly, is not going anywhere, and it is well supported across the country by civic leaders. For now, however, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Third Reading

[Nigel Huddleston]

I beg to move, That the Bill be now read the Third time.

We are moving at speed today. I would like to thank the hon. Member for Hornsey and Wood Green (Catherine West), who led the Bill through Committee for the Opposition, and to wish her all the best in her new role. I would also like to thank all Members who sat on the Public Bill Committee and who have otherwise contributed to the Bill’s passage, including the hon. Member for Birmingham, Perry Barr (Mr Mahmood), the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), the hon. Members for Birmingham, Edgbaston (Preet Kaur Gill) and for Birmingham, Selly Oak (Steve McCabe), my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell), my hon. Friends the Members for Birmingham, Northfield (Gary Sambrook), for Dudley South (Mike Wood), for Dudley North (Marco Longhi), for North Warwickshire (Craig Tracey), for Stourbridge (Suzanne Webb), for Stoke-on-Trent Central (Jo Gideon), for West Bromwich East (Nicola Richards) and for West Bromwich West (Shaun Bailey), and many more.

I would also like to thank all the games partners, including Birmingham City Council; the West Midlands Combined Authority and the Mayor, Andy Street; Transport for West Midlands; West Midlands police; and, of course, the organising committee itself. As a games partnership, they have provided excellent support during the passage of the Bill. As I am sure hon. Members would agree, they have been open and have engaged with Members right across the House.

My thanks also go to the officials, who have worked so hard on this Bill since its first introduction last year, and to my noble Friends Baroness Barran and Lord Ashton, for steering the Bill through the House of Lords in such a collaborative and accomplished fashion. I would also like to thank Members of this House and the House of Lords for their scrutiny and for the thoughtful and constructive contributions we have seen throughout the Bill’s passage. Indeed, we have seen many positive changes on the back of that scrutiny—for example, the organising committee is now required through this legislation to report on certain areas of games delivery, ensuring full transparency and accountability.

Now seems the right moment to reflect on the preparations for the Birmingham 2022 games, which have already had to overcome an unprecedented level of challenge and uncertainty. We started out with a truncated delivery timeline of four and a half years, rather than the usual seven for a full games cycle. We should not forget that the games were originally awarded to Durban, and it was not until the end of 2017 that Birmingham picked up the baton. Of course, the current pandemic has also brought its own set of challenges. However, despite that environment, great progress has been made to ensure that we are still set to deliver a fantastic games on time and on budget, delivering real benefits to those in the region and beyond.

As Members know, significant upheaval has been caused in the international sporting calendar because of the impact of covid-19, with many major competitions being postponed or cancelled altogether. Following collaborative discussions with the organisers of other major events, including the world athletics championships, I am pleased to confirm that the start of the games will move back by one day, with the opening ceremony now taking place on 28 July 2022. That change will ensure that there is a summer showcase of major events in 2022, and Birmingham 2022 will continue to get the exposure it deserves, as broadcasters showcase the games to over 1 billion people across the world. Further, the change will ensure that the opening ceremony of the games does not clash with any matches of the UEFA women’s European football championships, which were due to be held in England in 2021, but which have now been moved back to 2022—they are still in England, of course.

All of this will ensure that 2022 continues to be a fantastic year of celebration for our country and an opportunity to champion all that is great about this United Kingdom—a year where, alongside welcoming the world to Birmingham for the 22nd Commonwealth games, we will be celebrating Her Majesty the Queen’s platinum jubilee, marking the 100th anniversary of the BBC and staging a major nationwide festival showcasing our creativity and innovation.

I would also like to reflect on and celebrate those things that will make the Birmingham 2022 games unique. This will be the first time in history that a major multi-sport event features more women’s medal events than men’s, as well as featuring the largest integrated parasport event. We have seen the Birmingham 2022 organising committee publish the Commonwealth games’ first ever social values charter, helping to ensure that the important values discussed both here and in the House of Lords remain at the forefront of games delivery. Such values are those of accessibility and a lasting games legacy.

Earlier this week, the Birmingham 2022 organising committee formally announced the new Birmingham 2022 inclusive games standard, alongside its commitment to accessibility and inclusivity. It is hoped that the BIG standard, supporting the Birmingham games to be the “Games for Everyone” will become a blueprint for future editions of the Commonwealth games.

Turning to legacy, the importance of the games as a catalyst for the economic, cultural and social renewal of the west midlands is underscored now more than ever as we look to restore livelihoods and rebuild from the current situation. In 2020 alone, £145 million of organising committee contracts will be available for tender across a broad range of services, and the organising committee will see its workforce double. In recent weeks, it has held webinars with local chambers of commerce to promote these tenders, and it will continue to do so. All these opportunities are listed on the Birmingham 2022 website.

[Saqib Bhatti]

I thank my hon. Friend for bringing the Bill back to the House, and for talking about the legacy and the economic positives that will come from this. Does he acknowledge the role that the Mayor of the West Midlands, Andy Street, has played in making sure that this Commonwealth games was brought to the west midlands, thrusting our region on to the international stage?

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[Nigel Huddleston]

My hon. Friend makes a very important point. Indeed, all stakeholders, but I have to say Andy Street in particular, have been very focused on the legacy, plus the trade, investment and tourism opportunities that could come. He played a pivotal role in securing additional money in the Budget earlier this year for those initiatives.

We must ensure and continue to ensure that the benefits brought by the games are lasting ones felt long after the 11 days of sport. A director of legacy has recently been appointed to help ensure we can meet this ambition, driving forward and embedding this work across the games partnerships. I know the organising committee has already reached out to hon. Members across the House to ensure that these benefits can be realised across the west midlands and beyond.

The Government and all games partners remain fully committed to delivering a fantastic and memorable games in 2022, building on our excellent reputation for staging major events, and showcasing the best of Birmingham, the west midlands and the entire country to the world. Although today marks the final stage of debate on this Bill, there will be many more opportunities for the House to keep up to date on the delivery of the games and its legacy, and I hope hon. Members can take advantage of those opportunities.

I thank the House once again for its support for the games and for this Bill. As we have heard, the Bill is integral to ensuring that these games are a success, and it is an important milestone in the ongoing preparation. I am very happy to have led this Bill’s charge to the finish line, and I look forward to seeing it reach the statute book very soon. I commend the Bill to the House.