Creative Industries

Saqib Bhatti Excerpts

Monday 27th January 2025 Commons Chamber

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a privilege to wind up the debate on behalf of His Majesty’s Official Opposition. There have been impressive contributions from across the House, and many Members have highlighted how their constituencies deliver for the UK’s creative industries. We heard from the hon. Member for Wimbledon (Mr Kohler), who participated in a punk rock band—the last one to perform at The Roxy, he said, although I think the jury is out on that. We also heard from the hon. Member for Bury North (Mr Frith), who I believe performed at Glastonbury. I do not think he talks about that enough; he should do so more in the future.

My right hon. Friend the Member for Maldon (Sir John Whittingdale) highlighted the places that made him the man he is today. My hon. Friend the Member for Isle of Wight East (Joe Robertson) secured a meeting for not just himself but his Labour colleague, the hon. Member for Isle of Wight West (Mr Quigley)—a great example of cross-party working. My hon. Friend the Member for Bridgwater (Sir Ashley Fox) made a very serious point about the impact of the Budget on the creative industries. The Chair of the DCMS Committee, my hon. Friend the Member for Gosport (Dame Caroline Dinenage), gave a tour of the power of the creative industries across the country. She is doing an excellent job of holding the Government to account.

As we have heard, the UK’s creative sectors are world-leading. They provide opportunities for young people up and down the country to gain employment and skills that can transform their lives. I welcome the fact that so many Members across the House recognise the potential of the creative industries to grow the economy. The UK’s creative industries are truly formidable. In both cultural and economic terms, they are absolute titans. In 2023 alone, it is estimated that the creative industries contributed around £124 billion to the UK economy—in other words, about 5% of our overall economic output. There has been a steady rise in the value of the creative industries to the UK, from accounting for 4.7% of economic output in 2010 to over 5.2% in 2023. It is important that we in this place recognise their growing importance in economic terms.

Our creative industries are also immense in terms of jobs. Around 2.4 million people work in the sector, which totals around 7.1% of all UK jobs. Although the creative industries are still quite heavily London-based, we see diversification of the sector and clusters of creative industry right across the UK, from the leading video game development hubs in Stoke-on-Trent to the beating heart of Northern Ireland, where the creative industries sector employs 29,000 people. Huge swathes of the UK benefit from our creative industries. I know that at first hand, as a west midlands MP. The remarkable director Steven Knight, who created “Peaky Blinders”, runs an incredible project in Birmingham where he recruits 20% of people from the most deprived neighbourhoods. Steven’s record shows that we must continue to champion our creative industries sector, because it has real potential to drive social mobility and generate economic growth. As “Peaky Blinders” is a huge international success, our creative industries ensure that Brand Britain rules on the international stage.

We cannot measure the value and importance of our creative industries just in economic terms, because their reach is impossible to estimate truly. Government statistics show that between July and September 2023 there were 12.5 million visits to DCMS-sponsored museums and galleries. Given the Government’s desire to ensure that 50 million people come to the UK each year, allowing these cultural hubs to thrive will bring more people to the UK to visit some of our great cultural attractions. As my right hon. Friend the Member for Daventry (Stuart Andrew) set out, the Conservatives have a proud record of supporting the creative industries. Between 2010 and 2022, the creative industries grew at more than double the rate of UK gross value added, expanding by over 50%. During that period, over one million new jobs were created in the sector. Rather than burdening the creative industries with tax hikes, we introduced over £1 billion of tax reliefs, including the UK independent film tax credit and business rates relief for theatres and cultural venues.

As my right hon. Friend the Member for Maldon set out, during the pandemic we introduced unprecedented support for the creative industries, including the £1.57 billion culture recovery fund, the £500 million film and TV production restart scheme and the £800 million live events reinsurance scheme. That support protected over 5,000 organisations and safeguarded 220,000 jobs, ensuring that our creative industries could bounce back and continue to offer opportunities for young people.

As we have heard, our ambition did not end there. In government, the Conservatives published a sector vision setting out our plan to grow the creative industries by £50 billion and create one million new jobs. These were jobs for young designers, artists, writers, creatives and others who wanted to bring joy, inspiration and opportunities to the lives of others. In this debate, the Government claimed to have similar aspirations for the creative industries and the young people eager to build careers in them, but we know that is simply not true.

Labour Members have spoken warmly about the creative industries, their impact on the economy and the many opportunities that they bring to young people, but the Government’s actions speak louder than their words. The Government know that one in eight young people are not in education, employment or training, and that many lack the essential skills and confidence to progress in work. How did Labour rise to that challenge? It scrapped the National Citizen Service.

The NCS, introduced by the previous Government, was designed to support young people during a crucial time in their life, connecting them to peers from many walks of life. It gave them opportunities to build their skills and confidence, and empowered them to make a difference in their communities. Having delivered over a million experiences to young people, who took part in over 18 million hours of volunteering, the NCS made a real difference. Does the Minister recognise that Labour’s decision to scrap the NCS will mean that fewer young people take up the opportunities presented by the creative sectors? UK Youth has warned that scrapping the National Citizen Service and the youth investment fund, along with other cuts, could lead to a net reduction in central Government funding for youth services in 2025-26, possibly by tens of millions of pounds. That will inevitably hurt the creative sector.

Many Labour Members spoke warmly about the creative sector, but their Government are doing irreparable harm to its industries. The truth is that the Chancellor’s Budget of broken promises raised taxes to the highest level ever and introduced a national insurance jobs tax. Labour slashed retail, hospitality and leisure relief. There is nothing to protect the creative industries from the Deputy Prime Minister’s radical Employment Rights Bill—a ill-thought-through piece of legislation that will bolster the power of the trade unions and take the country back to the 1970s.

[Gareth Snell]

The hon. Gentleman’s point about the trade unions is absolute nonsense, but that aside, he was first elected in 2019. He is on record as publicly supporting former Prime Minister Liz Truss and, according to Hansard, voted for the health and social care levy, which was a larger increase in national insurance across a much broader spectrum. At no point did he raise concerns about the creative industry then, so would he like to take this opportunity to apologise for that, or is this just naked political point scoring?

[Saqib Bhatti]

The hon. Member makes an interesting point. I can see the Whip furiously making notes: “Give the man a job.” He was reading that off the Whip’s handout, and that is all I will say.

Our creative industry sector, and especially the young people within it, will pay the price of the Chancellor’s growth-killing Budget and the Deputy Prime Minister’s radical Employment Rights Bill. The Institute for Fiscal Studies has warned that Labour’s national insurance jobs tax could lead to fewer opportunities. The sad truth is that under this Labour Government, many businesses in the creative sector will not survive. Don’t just take it from me; take it from Sir Nicholas Hytner, the former artistic director of the National Theatre, who warned that Labour’s jobs tax will force businesses to close, or from UK Theatre, which warned that 40% of venues could close in the next five years due to Labour’s autumn Budget. The inevitable truth is that this Labour Government are a threat to the entire creative industry sector.

But it is not just the Government’s rampant socialism that poses a huge threat to the creative industries. [Interruption.] I am glad Government Members are cheering the demise of the creative sector; people in them will be listening. Alongside the catastrophic impact of Labour’s increase in national insurance, there is the Government’s copyright and AI consultation, which is causing deep concern for the creative industries, but also for many Labour Members. The Minister’s preference for a data mining opt-out for the creative industries will place extra burdens on creators, who are rightly concerned that their work is under threat. My hon. Friend the Member for Gosport (Dame Caroline Dinenage) and many others made a compelling argument about how damaging the Government’s proposal is.

Given the magnitude of the potential changes to copyright and AI, one would think that the Minister would have allocated significant time for creative industry sectors to raise their views. Instead, during the Christmas break, he rolled out a consultation that finishes just next month. He left the creative industries scrambling to raise their concerns with a Government who refuse to listen.

The Minister also works in the Department for Science, Innovation and Technology, so can he tell me why, as my hon. Friend for Gosport mentioned, the Secretary of State for Science, Innovation and Technology has refused to meet representatives from the creative sector? I have heard myself just how worried, angry and frustrated the creative industry sector is about this proposal. Does the Minister have any idea about its impact? Has he considered having a full and transparent impact assessment to properly understand how the sector will be harmed by these changes? My right hon. Friend the Member for Maldon put forward some really important points and challenges, and I look forward to hearing the answers to those.

In our last exchange at the Dispatch Box, I asked the Secretary of State questions about her national youth strategy, but my questions remain unanswered. I hope that the Minister, in his closing statement, can address the serious concerns we have raised about Labour’s Budget of broken promises and its radical Employment Rights Bill, as well as the serious issues we have highlighted around the Government’s AI and copyright consultation.

I repeat, slightly changed, the question I asked Secretary of State at the Dispatch Box less than two weeks ago: can the Minister guarantee that the Chancellor, in a desperate attempt to save her job, will not balance the books by putting the burden on the back of our creative industry sector? When I asked the Secretary of State that question, she said that it was tired. Well, I can tell the Minister that Conservative Members will not tire of standing up for our young people; we will not tire of standing up for our creative sectors; and we will not tire of holding the Government to account.

Listed Places of Worship Scheme

Saqib Bhatti Excerpts

Wednesday 22nd January 2025 Westminster Hall

[Saqib Bhatti (Meriden and Solihull East) (Con)]

I start by praising my hon. Friend the Member for Bromsgrove (Bradley Thomas) for securing this vital debate. As we can see, it is incredibly important to many hon. Members, and I want to acknowledge contributions from a number of them, but given the time, I cannot acknowledge everybody. I thought my hon. Friends the Members for South Northamptonshire (Sarah Bool), for Huntingdon (Ben Obese-Jecty), for Mid Buckinghamshire (Greg Smith) and for Spelthorne (Lincoln Jopp), my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), the hon. Members for Newport West and Islwyn (Ruth Jones) and for York Central (Rachael Maskell), and my right hon. and learned Friend the Member for Torridge and Tavistock (Sir Geoffrey Cox) all made wonderful contributions, as did the other Members I have not been able to mention. They have all made their faith communities incredibly proud. I take your steer, Mr Western, and will try and give the Minister as much time as possible to satisfy the Members in this House, because this is an important debate.

Britian is defined by its history: up and down the country, people are fiercely proud of their heritage. As His Majesty’s loyal Opposition, it is therefore right that we hold the Government to account as we try and stand up for our history and protect our heritage. In Opposition, we have campaigned on this issue very vehemently and I know there is a written ministerial statement on the way. As my right hon. Friend the Member for Gainsborough said this might be the shortest campaign ever.

[Chris Bryant]

The shortest WMS.

[Saqib Bhatti]

It might the shortest WMS, which I hope tells us how the Minister is extending the scheme. I want to thank all the people from across the country who have written to us on this issue—their voice matters. I thank all the volunteers who protect our most beautiful heritage sites.

The Conservatives are very clear that Britian’s rich history, deep sense of tradition and incredible national story is something we should always protect, and there is no doubt that our churches, and other places of worship that have been announced, are fundamental to that. These cherished buildings play key roles in their local communities, serving both as a window into our past and as active centres of support and sanctuary for people of all faiths and none.

The people who look after them, as custodians of our future generations, are volunteers who give their time and energy generously with very little external help, but many of them are reliant on the vital lifeline that is the listed places of worship grant scheme. Introduced in 2001, the scheme provides essential grants covering the VAT charge and repairs to listed buildings used as places of worship. I am proud that the Conservative Government had a very strong record of supporting that important scheme. Under the previous Government, the listed places of worship grant scheme was extended, providing funding to cover VAT on essential repairs, which meant thousands of churches were protected for generations to come.

However—this may change—Labour is yet to announce whether it will fund the scheme past its expiry in March this year. The Budget came and went without an answer. This uncertainty is making the task of those who look after these precious buildings more precarious and stressful. Many are understandably delaying their plans until the Government make up their mind, meaning more leaky roofs, more draughty windows and more cold churches during the vital Christmas period. With the WMS on the way, I am hopeful that the Minister will announce something meaningful that goes beyond one year. I share the ambition of my hon. Friend the Member for Bromsgrove for the permanency of this grant, so I hope the Minister will address that point.

According to Historic England, 969 places of worship are under threat, including churches in the Prime Minister’s constituency. When questioned about the scheme at the Dispatch Box last week, the Minister quoted a hymn, but the custodians of our historic churches need more than a hymn and a prayer. They deserve clarity and support from the Government, which I hope the Minister can give us today. That is important because Historic England’s informative heritage at risk register paints a harrowing picture for England’s historic sites. For places of worship in particular, the possibility of roofs collapsing or a lack of maintenance on stonework would be catastrophic.

Numerous constituents in my constituency of Meriden and Solihull East have written to me about their concerns for some of our most beloved local churches. They told me that discontinuing the scheme would

“be a disaster for listed places of worship”,

and that the ability to reclaim VAT

“makes an enormous difference, particularly at a time when the cost of building work has increased substantially.”

There is great frustration about the Government’s failure to confirm the extension of this vital scheme. It is not just felt by constituents; it has an impact on all our communities and on the rest of society.

The chair of the National Churches Trust, Sir Philip Rutnam, has called on the Government to renew the listed places of worship fund. Sir Philip states that the crisis affecting church heritage could get worse in the coming months if this vital “financial lifeline” is scrapped. The Bishop of Dudley, Bishop Martin Gorrick, also paints a bleak picture, saying,

“It is not just heritage that is at risk if the Scheme lapses. Churches and other places of worship are home to so much social enterprise and action: Church of England churches support over 35,000 social action projects such as foodbanks, community larders and debt, drug, alcohol advice and rehabilitation groups.”

The director of the Friends of Friendless Churches, Rachel Morley, wrote to the Secretary of State saying,

“The impact of this cut at a parish level would be devastating”

and that,

“We place the burden of caring for thousands of the nation’s most important buildings—undoubtedly the nation’s greatest free heritage resources—on a tiny proportion of the public who are, for the most part, volunteers.”

That view was eloquently shared by my right hon. and learned Friend the Member for Torridge and Tavistock (Sir Geoffrey Cox).

I hope the Government will confirm the continuation of the scheme as soon as possible or, better still, an expanded scheme that helps the custodians of listed places of worship to carry out vital repair works in the first place. One challenge I would put to the Minister is that the funding has been a rebate for many years. Let us make it into a grant and let us make it permanent. Will he also consider the private Member’s Bill promoted by my hon. Friend the Member for Christchurch (Sir Christopher Chope), which raises quite a vital point? I hope he addresses that.

I cannot speak about this issue without addressing the broader economic picture. If the Government were to neglect these cherished buildings, it would be an act of vandalism, but it would come as no surprise to many of our constituents if the Labour Government did turn a blind eye to this threat to our heritage, given where we are economically. We have seen the calamitous impact of the Chancellor’s callous Budget on our great houses already, including on our historic houses, and I have already written and made comments about the impact. Independent analysis has shown that the dramatic increase in inheritance tax could spell an end for many of our historic heritage sites and estates across the country. This would cost jobs and mean that some of the UK’s most popular stately homes would be closed.

I have very little confidence in the long-term faith that the Government would put in our heritage. Of course, the dire economic circumstances make a big difference. I have already raised the matter on the Floor of the House, because it is becoming ever clearer that the Chancellor will have to cut budgets. Although many of our voters, including many of my constituents, do not believe that they can afford a Labour Government, what they certainly cannot afford is the Minister abandoning our most vital sector, so I encourage him to stand up to the Chancellor and try to protect those vital budgets. As the cost of debt goes up and the economic situation becomes more dire, the Chancellor will have even less headroom to spend on schemes such as the listed places of worship grant.

Mr Western, in deference to your timing request, I will conclude. I share the concerns of many beyond this House that the Government are yet to protect our heritage. As we have heard from hon. Members on both sides of the Chamber, hundreds of churches have been left with a deep sense of uncertainty for months. The Government’s failure to commit to that funding risks imperilling centuries of British history and heritage, all while leaving gaping holes in our local communities and depriving our constituents of spaces to accommodate celebration, grief, art, music, sculpture, political hustings—of course—wellbeing groups, childcare, addiction support sessions and so much more. The listed places of worship grant scheme is essential, and I urge the Minister to make the strongest possible case for its renewal to the Treasury; otherwise, many of our constituents will ask, “Is nothing sacred any more?”

Artificial Intelligence Opportunities Action Plan

Saqib Bhatti Excerpts

Monday 13th January 2025 Commons Chamber

[Peter Kyle]

I really look forward to Reading getting involved, and to it offering to partner with us. We want to get investment into great places like Reading, which has a lot of great small businesses. Small businesses in communities up and down the country could benefit the most. They might sometimes feel like they are tucked away, but they can enter the global stage because of the technology that is before us. The Government’s job is to ensure that the infrastructure is there, and that all the technology is as accessible to small businesses as it is to big companies.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

We should be under no illusion: the U-turn on a supercomputer is exactly that. We committed £1.3 billion to it; Labour cancelled it. Can the Secretary of State tell the House how much money has been set aside to achieve his supercomputer ambitions?

[Peter Kyle]

I admire the way the Conservatives just push through with this. They did not commit a single penny to a single one of the projects that the hon. Gentleman mentions. They want all the benefits of our Budget, but will not say how they would pay for them. He is actually asking me to cut £800 million, or £1.3 billion, of revenue—perhaps cut thousands of research grants to universities and PhD students—to pay for a project that the Conservative Government announced but did not commit a single penny to.

Live Events Ticketing: Resale and Pricing Practices

Saqib Bhatti Excerpts

Monday 13th January 2025 Commons Chamber

[Saqib Bhatti (Meriden and Solihull East) (Con)]

I thank the hon. Gentleman for advance sight of his statement. As he said, dynamic pricing is a strategy used across many industries outside the creative sectors, including by hotels, taxis and airlines. It can offer significant benefits for consumers when prices are low—for example through early-bird tickets or late ticketing.

The Government are right to emphasise the importance of transparency. Oasis fans know—I am one of them—that we did not have the necessary information up front, and I understand that the Competition and Markets Authority is rightly investigating that episode. However, it is my view that new regulations should be considered only when they are necessary and proportionate and do not duplicate existing rules. Current legislation already states that although dynamic pricing is legal, it must be implemented transparently. I can assure the Minister that we will carefully consider any proposals that could strengthen, improve or simplify the market for fans, but I warn him that we will oppose regulation introduced for the sake of introducing new regulation.

The secondary ticket resale market plays an important role for artists, fans and venues. It can provide a safer way to transfer unwanted tickets, ensuring that seats in venues are not left empty. The Minister claims that his reforms will better protect fans, improve access to live events and support the creative sectors. He claims that the proposals will give power back to fans and prevent them from being fleeced by ticket touts. We know that that is not true, however. We know that Labour’s plans will harm fans and venues, and make live events even harder to attend. [Interruption.] The Minister wants to know so I will tell him.

Let us first discuss price caps on resale tickets. The Government’s consultation proposes capping ticket resale prices to somewhere between the original price and a 30% uplift. That may seem on the surface like a reasonable measure, but we know that it will lead to an upsurge in black market activity and to more money flowing into the pockets of ticket touts. In fact, price controls would lead to a surge in unregulated and illegal transactions, leaving fans with little to no consumer protections. The Minister might not believe me, a free-marketeer, but in response to Government’s consultation, the Computer and Communications Industry Association, warned that

“Draconian regulation, targeting only the secondary market, will only mean more tickets changing hands in informal settings without the same protections that exist in proper marketplaces.”

I regret to say that the Government’s proposed measures to increase the regulation of resale websites and apps, and to raise fines for rule violations, will not prevent fans from turning to underground markets. We have already seen that in Victoria, Australia, where a 10% profit cap failed to prevent significant mark-ups on ticket prices, and even led a spike in the number of ticket scams. We know that scams are already a serious issue in the secondary ticketing market. For example, and as the Minister will be aware, Lloyds Bank estimates that Taylor Swift fans lost £1 million in ticket scams ahead of her tour. If his policy had been in place, how much more would fans have lost to scammers?

We know that a ticket resale cap will lead to empty seats and the prevent spontaneous ticket purchases. We saw that at the Paris Olympics, where restrictions on the resale of tickets left empty seats at many venues. Empty seats are bad not just for artists, but for the economy. Events at stadiums and venues provide a boost for local businesses, including restaurants, bars and other hospitality venues. Let us be clear: the hospitality industry is already under a lot of strain, not least because of the Budget of broken promises. Labour’s national insurance jobs tax, and its slashing of reliefs, have led the Music Venue Trust to warn that many businesses are at

“immediate risk of closure, representing the potential loss of more than 12,000 jobs, over £250 million in economic activity and the loss of over 75,000 live music events.”

Let us be clear: the reason we are here today is that the spin doctors in No. 10 are trying to move the news cycle away from a beleaguered Prime Minister, a Chancellor already drowning in the debt markets, and an anti-corruption Minister being accused of corruption. All the while, the Government and the Department are throwing creative industries and hospitality businesses under the bus.

[Chris Bryant]

Lordy, lordy, lordy! The hon. Gentleman says that he is an Oasis fan, but to be honest given how he talks about the last Tory Government, I think he must be a Nirvana fan—because everything was absolutely perfect when he was a Minister, wasn’t it?

Let me first put something right. The hon. Gentleman seems to think that our call for evidence on dynamic pricing is about all sorts of different industries, but it is only about the live events sector. We are not talking about the tourism industry, hotels, taxis or anything like that; we are talking solely about the live events sector. We recognise that that was not part of our manifesto commitments, so we want to hear people’s evidence and whether we need to take further measures.

One thing that I can say confidently is that it seems horribly unfair for someone logged into the system to see the ticket price going up—£120, £125, £130, £135—because that creates a sense of panic that they must buy one. It is perfectly legitimate to consider whether that is a good way of selling tickets and whether it is fair to consumers. That is a legitimate question to ask. I cannot comment on the Oasis situation; the hon. Gentleman knows perfectly well that the Competition and Markets Authority is investigating that.

Let me correct the hon. Gentleman’s other point. He kept saying, “We know that” this, that or the other will happen. Well, we do not know, for a start, but more importantly, let me explain to him what we are really trying to tackle. It is the thing where, say, Becky, who lives in flat 23, No. 75 High Street, is desperate to get two tickets to see her mum’s favourite band on her mum’s birthday later that year. She is absolutely desperate, so she tries and tries again to log on at 9 o’clock. She cannot manage to get into the system, but can see the tickets selling. At 20 past 9, all the tickets are gone but then—lo and behold—at 21 minutes past 9, they are available on the secondary ticketing market for vastly inflated prices. That is what we are trying to tackle. It is a very simple problem.

The hon. Gentleman referred to just one country, but loads of places around the world—France, Italy, Ireland, Poland, Portugal, Norway, Japan, Belgium, most of Canada, most of Australia, Israel, and several states in the United States—have simple measures in place. We want to ensure that we tackle that very simple problem. In the end, the value is created by the artists themselves and by the passion of the fans. It should not go into pockets that are not, in the main, based in this country and certainly have not contributed anything to the creation of that value in the first place.

Oral Answers to Questions

Saqib Bhatti Excerpts

Wednesday 20th November 2024 Commons Chamber

[The Deputy Prime Minister]

Free speech and our press are incredibly important—they are part of our democracy—but in direct response to my hon. Friend’s question, the police are independent and it is a live investigation, so it would not be appropriate for me to comment on that. I believe that we should have a free press. It is part of our democracy, and we should have free speech, but with that comes responsibility for those who do it.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

Q2. Yesterday, I met three constituents in Parliament: Duncan Hawley, his wife Nicola and his 10-year-old daughter Hattie. Duncan is a sheep farmer, and he has stewarded his family farm for most of his life. He is outraged, hurt and worried about the Government’s deeply damaging family farm tax. He is deeply worried about food security, food inflation and whether he will even be able to pass that farm on to future generations. My question to the Deputy Prime Minister is simple: why have this Labour Government declared war on British farmers?

[The Deputy Prime Minister]

I say to the hon. Gentleman and to Duncan and Nicola that this Government have not declared war on farmers. The vast majority of farms will not pay any inheritance tax. We have protected them. We have been as generous as we can. The farmers rely on our public services, like everybody else. We inherited a £22 billion black hole from the Conservatives, who spent reserves three times over. We are investing in our schools, our hospitals, our public services and housing. If the hon. Gentleman does not agree with that, then, like the Leader of the Opposition, he should say what he would do differently .

Tourism: Northumberland

Saqib Bhatti Excerpts

Tuesday 19th November 2024 Westminster Hall

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a great privilege to serve under your chairmanship, Sir Roger. As I make my debut as the shadow Minister for DCMS, it is great that I am now shadowing my friend, the hon. Member for Rhondda and Ogmore (Chris Bryant), as he shadowed me in the Department for Science, Innovation and Technology. I hope we will have a constructive debate today and going forward.

I want to thank the hon. Member for Hexham (Joe Morris) for securing this debate and for his illuminating speech about what his constituency, and the whole of Northumberland, offers in the way of tourism. We should all aspire to nurture the tourism industry in our constituencies. I look forward to visiting his constituency in Northumberland in the near future.

We should all recognise the immense contribution of the tourism industry to our economy, our constituencies and our local communities. Tourism is a vital sector, contributing more than £70 billion to the UK economy annually and employing more than 1.6 million people directly, with millions more benefiting indirectly. Indeed, brand Britain depends on a thriving tourism industry.

The latest annual Scarborough Tourism Economic Activity Monitor report on the economic impact of tourism shows that the Northumberland visitor economy has experienced strong year-on-year growth. In 2023, it recorded its highest ever gross value contribution of £1.262 billion, a 7.9% increase from 2022, with Northumberland welcoming more than 10 million visitors. That demonstrates that Northumberland’s tourism industry is continuing its post-covid recovery, thanks in part to the support provided by the previous Government’s tourism recovery plan. I put on record my thanks to the former Members who contributed to that plan, Guy Opperman and Anne-Marie Trevelyan, who are greatly missed on the Conservative side of the House.

However, it is now up to the new Government to demonstrate how they plan to support the tourism sector in sustaining its post-covid recovery. During the general election and throughout their time in power, we have seen no indication yet of a comprehensive, long-term strategy. Can the Minister outline when the Government will present a sector-wide support plan to help counties such as Northumberland, and the businesses that rely so heavily on tourism?

Many businesses in Northumberland are heavily dependent on seasonal tourism in particular, which poses significant challenges when it comes to retaining experienced staff and making long-term investment in their businesses. To truly support local economies such as Northumberland, it is crucial that we shift towards a year-round tourism model, which provides the stability and growth opportunities that our businesses need. Can the Minister confirm whether the Government’s tourism plan will consider specific support for businesses to operate year round, helping them to overcome the seasonal challenges that they face?

The increase in national insurance contributions for businesses, made by the Chancellor in the last Budget, will have a profound impact on the hospitality sector. The sector is vital for the success of tourism-dependent businesses, as we are continually hearing. As noted by many industry leaders, including UKHospitality, it could force many small, tourism-related businesses—including those independent ones previously mentioned—to close, reduce employees’ hours, or even scale back their expansion plans.

Tourism businesses, including hotels, restaurants and attractions, rely on part-time and seasonal workers to meet demand during peak times. The changes in NICs may make it more difficult for those businesses to retain or take on staff, limiting their capacity and ability to make a profit. That is especially concerning for Northumberland, where tourism clearly not only contributes to the local economy, but plays a key role in sustaining small businesses and preserving local jobs.

Given the ongoing recovery of the tourism sector following the pandemic, those additional financial challenges may well threaten to undo much-needed and well achieved progress, particularly for small businesses struggling with already thin margins. Therefore, it is essential that the Government consider how those new cost pressures will affect tourism and hospitality businesses, and that they work to provide support to help those businesses navigate the challenges in that sector successfully.

To unlock Northumberland’s full tourism potential, we must prioritise investment in key supply-side areas such as transport infrastructure, as rightly pointed out by the hon. Member for Hexham . Improved connectivity, whether by road or rail, is vital for attracting domestic and international visitors. Enhancing access to Northumberland’s iconic sites—from Hadrian’s wall to Alnwick castle—will enable more people to experience the county’s rich cultural and historical heritage.

In addition, strengthening digital infrastructure is crucial. Many rural areas in Northumberland suffer from limited broadband, which affects not only local businesses but tourists’ experience. Will the Minister clarify the Government’s commitment to improving Northern Rail and investing in digital infrastructure as part of its tourism strategy?

Northumberland’s tourism industry has demonstrated exceptional resilience in its recovery from the pandemic. However, the Government’s recent changes to national insurance contributions could push small tourism and hospitality businesses to the brink. It is crucial that the Government provide the necessary support to the tourism sector, particularly in counties such as Northumberland, to help them to absorb those additional financial pressures and work towards returning to pre-pandemic levels. I look forward to hearing the Minister’s plans for the future of tourism in the UK and in Northumberland, and for the communities that depend on the industry to thrive.

Draft Online Safety Act 2023 (Priority Offences) (Amendment) Regulations 2024

Saqib Bhatti Excerpts

Tuesday 5th November 2024 General Committees

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I am happy to confirm that the Opposition will support these regulations, not least because, as the Minister has said, they complement the previous Government’s work on the Online Safety Act, and I was the Minister responsible for implementing the Act from when it received Royal Assent until the general election.

I take great pride in having served in the Government that introduced and passed the Online Safety Act. It places significant new responsibilities and duties on social media companies, platforms and services to increase safety online. However, most importantly, this vital piece of legislation ensures that children are better protected online. Having just attended a roundtable where we listened to victims of online abuse, I know that that is more important than ever. The Minister will share my thoughts on that. I share his sentiment—the Opposition will work with the Government to make sure that victims of online abuse receive justice and are supported and protected.

It is worrying and sad that almost three quarters of teenagers between 13 and 17 have encountered one or more potential harms online, and that three in five secondary school-aged children have been contacted online in a way that potentially made them feel uncomfortable. It is for those reasons that we ensured that the strongest measures in the Online Safety Act protect children. For example, platforms are required to prevent children from accessing harmful and age-inappropriate content and to provide parents and children with clear and accessible ways to report problems online when they arise. Furthermore, the Act requires all in-scope services that allow pornography to use highly effective age assurance to prevent children from accessing it, including services that host user-generated content and services that publish pornography. Ofcom has robust enforcement powers available against companies that fail to fulfil their duties.

The Online Safety Act also includes provisions to protect adult users, as it ensures that major platforms are more transparent about which kinds of potentially harmful content they allow. It gives users more control over the types of content they want to see. I note that Ofcom expects the illegal harm safety duties to become enforceable around March 2025, following Ofcom’s publication of its illegal harm statement in December 2024. Does the Minister agree that platforms do not need to wait for those milestones, as I often said, and should already be taking action to improve safety on their sites? Can he confirm that he is encouraging platforms to take proactive action in advance of any deadlines?

Separately from the Online Safety Act, the last Government also launched the pornography review, which explores the effectiveness of regulation, legislation and the law enforcement response to pornography. Can the Minister provide a reassurance that the review’s final report is on schedule and will be published before the end of the year? Can he also clarify whether the review will consider the impact of violent and harmful pornography on women and girls? I would be grateful for the Minister’s comments on those points and for his co-operation throughout his tenure. I am happy to add our support to these regulations, and to see that the previous Government’s pivotal piece of legislation is making the UK the safest place in the world for a child to be online.

Oral Answers to Questions

Saqib Bhatti Excerpts

Wednesday 16th October 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

The Secretary of State, in one of his first acts in his new role, cut £1.3 billion-worth of funding that would have been transformative for enabling cutting-edge research and development in Britain. I note that he has also ditched our ambition to turn Britain into a science and technology superpower. We set a target of £20 billion for R&D, which we met, but he has set no such target. Will he be setting a target, and can he today promise that there will be no cuts to R&D expenditure?

[Peter Kyle]

I congratulate the hon. Gentleman on his appointment to his Front-Bench role. Let us just be honest about what this Government inherited. That £20 billion black hole affects every single Department across Government. My Department inherited a situation where the previous Government—including the former Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), who is sitting on the Opposition Front Bench—committed at this Dispatch Box to an exascale project to which not one single penny had been committed. That was a fraud committed on the scientific community of our country by that Government, and I had to make the difficult decision to move forward—

Technology in Public Services

Saqib Bhatti Excerpts

Monday 2nd September 2024 Commons Chamber

[Saqib Bhatti (Meriden and Solihull East) (Con)]

I would like to start by paying tribute to all the Members who made their maiden speeches. I congratulate each and every one of them on that nerve-racking experience. We may not always agree on many things or we may agree on a lot, but clearly they will all be formidable contributors to this House.

I would also like to welcome the ministerial team to their place—and the new Secretary of State. As the shadow Secretary of State, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) said in his opening remarks, the Front Bench have my utmost respect for serving in public office. Being a Minister is a great privilege and we know that it also places burdens on those closest around us, so I genuinely wish them well. The civil servants I worked with in the Department, including those in my private office, were hard-working, dynamic and top notch. I am sure Ministers will have the same experience.

As His Majesty’s Opposition, we will of course hold the Government to account. We will challenge them where challenge is required, but let me be clear: our sole intention is only to ensure that the United Kingdom remains at the forefront of global innovation and technological advancement. Ministers may not believe me when I say it, but I do want them to be successful because their successes are the nation’s successes.

It is in that spirit that I welcome some of the announcements on enhancing technological use in the public sector, because, as has been said, productivity in the public sector lags behind that of the private sector. The private sector has largely recovered from the pandemic, but the public sector remains less efficient than it was before. That is important for two reasons. First, the public sector—our services that we are so privileged to have, whether the national health service or our police, to name just two—represents 20% of the national output. Improving technology in our services means improving the very services that the British public rely on. Secondly, public services are funded by taxpayers’ money. It is not our money or the Labour party’s money. Hard-working British people pay their taxes for these services, so it is morally right that we all do all we can to make our public services fit for purpose and as efficient as possible.

That is why the previous Conservative Government launched the comprehensive public service productivity review to address low levels of public sector productivity. In our national health service, we utilised AI to cut administration to keep more staff on the frontline and increase the speed of diagnosis, including better diagnoses of stroke, and lung and breast cancers. Our police officers were kept on the streets, rather than pushing pens, with the use of technology to speed up simple administrative tasks, which meant that crime fell in every part of the UK—except, of course, in Labour-run London. We see and welcome the value of better technological uses in the public sector.

I have some questions for the Minister and for the Secretary of State, which I hope the Minister will be able to answer on his behalf. First, over the summer we were all appalled by the riots that gripped the nation and the role that social media played. Digital accessibility for our most vulnerable people matters, and part of that must be that the public have trust in using social media and online platforms. Antisemitism and anti-Muslim incidents have seen a huge rise online. Ministers will have met social media companies, including X. Will the Minister please clarify what actions will now be taken, as we move forward, to ensure that social media is not used to perpetuate and amplify antisemitic and anti-Muslim hatred?

Secondly, one of my last acts as Minister for Tech and the Digital Economy was to instruct officials in the Department to start reviewing and refreshing the Government’s digital inclusion strategy, and to present options. The timing of the general election prevented that work from making progress, but there is no reason why it cannot continue now. Will the Minister confirm that she will continue that work? Will she commit to ensuring that the necessary funds are put aside, so our public services are more digitally inclusive? Conservatives recognise the importance of making our public services truly accessible. As the last review occurred 10 years ago, will she commit to ensuring that the review is carried out in a timely manner? If our public services are to be truly inclusive, they must be digitally inclusive, and I look forward to hearing the Minister’s response.

I am also keen to know what happened to the AI Bill, the legislation that the Secretary of State promised so often when he was in opposition, and what he intends to do about AI regulation. Perhaps the Minister can tell us what assessment she has made of the number of AI companies that will be created as a result of his plans, how much investment will be generated, and how many new jobs there will be. Why was the AI Bill not ready for the King’s Speech?

Let me now turn to the Secretary of State. He has had a very busy summer, but whether it was productive is another question. Countries across the world are brimming with ambition, investing in some of the most exciting and transformative technologies, such as artificial intelligence, and ensuring that they are at the forefront of global technological innovation. Let there be no doubt that this is a global race, and I fear that in its first few months in office the Labour party may already have done enough to ensure that this great nation of ours never comes close to winning that race.

The previous Conservative Government set out an ambition to be a science and tech superpower by 2030. I note that the Secretary of State has not shared that ambition, so imagine my surprise when I saw that in one of the Government’s first big moments, one of their first big acts was to cut £1.3 billion of investment in supercomputer capability and related research funding. The Secretary of State talks about being a partner to the tech industry. Well, on hearing the news of the cutting of exascale funding, one tech entrepreneur said to me, “With friends like these, who needs enemies?”

Perhaps the Secretary of State—or the Minister, on his behalf—could clarify whether he fought against that decision or endorsed it. Was he able to stand up to the Chancellor, or was he so intimidated by her that he lost his voice? We know that the Prime Minister was unsettled by that portrait of Margaret Thatcher, so perhaps the Secretary of State was similarly unsettled by the Chancellor. Did he even bother to fight for Britain’s AI and tech entrepreneurs, or were the trappings of ministerial office so enticing that he forgot to defend the single most important investment that would have ensured that we maintained our top position in the global AI race for decades to come?

But let me offer the hand of friendship. [Laughter.] I assure the Secretary of State that the hand of friendship exists. If he is worried about standing up to the Chancellor, we on this side of the House will of course support him. He does not need to be afraid. We believe in economic growth, so we will help him to stand up to the Chancellor. After all, his successes will be the nation’s successes, and that is our priority.

Let me move on from exascale. Over the summer, it became clear that the Labour Government had capitulated to the junior doctors and given them inflation-busting pay rises without asking for any modernisation or efficiency improvements in return. Before that decision, did the Secretary of State meet the Health Secretary and insist on efficiency improvements or better use of technology, or was giving in to Labour’s trade union paymasters more important? He did say that they were joined at the hip, so perhaps he will be able to show what he did to fight for the tech entrepreneurs of this country. I note that my right hon. Friend the Member for Basildon and Billericay (Mr Holden) asked him a question that he did not answer.

I also note that the Government have been silent on the NHS productivity review, which was backed by more than £3.4 billion. Again, he did not answer a question, asked on this occasion by my hon. Friend the Member for Hinckley and Bosworth (Dr Evans). Can the Minister now confirm that that funding is safe, or is it part of the Chancellor’s “black hole” calculations? Our plan and our review were backed by the NHS and would have saved 13 million clinician hours. What, actually, are the Labour party’s plans?

When the Transport Secretary capitulated to the transport unions, did this Secretary of State meet her? Did he insist on better use of technology to improve our transport system, so that he could benefit consumers and protect taxpayers, or did he just watch from the sidelines and drink the Kool-Aid? This may have passed him by, but so far, in its first two months in office, the Labour party has already handed out £14 billion to its trade union paymasters in no-strings-attached public sector pay deals. So it is all well and good for the Secretary of State to grandstand at the Dispatch Box, but the facts are painting a different picture. I just hope that he can find his voice and stand up for the tech sector before it is too late.

Let me explain why this is so important. We have already heard the Secretary of State repeat the farcical claims about the Chancellor’s “black hole”, having inherited a tech economy that was the third most valuable in the world; a tech economy that was being recognised across the world for its ability to nurture more tech unicorns—that is, more companies valued at £1 billion—than France, Germany and Sweden combined; a tech economy that was growing and creating millions of jobs annually, and attracting billions of pounds-worth of investment.

If the Secretary of State did make the decision to cut the £1.3 billion of exascale funding and now talks down that same tech economy, and in doing so undermines those very tech entrepreneurs who will help to fund our public services for decades to come and makes it less attractive for investors to invest, he cannot sincerely stand at the Dispatch Box and argue that he believes in economic growth—not if his first major economic act was one of economic mutilation. I implore him to go back to the Chancellor and challenge this decision. He should not let the Chancellor’s political games undermine him or the tech industry, which has so much potential. It is in his power to ensure that we nurture tech innovation so that the tech start-ups of today can become the tech giants of tomorrow. I say to the Secretary of State that he should not squander this opportunity. Otherwise, his legacy will be defined by what he did not do, rather than what he did do.