Draft Online Safety Bill Report

Chris Philp Excerpts

Thursday 13th January 2022 Commons Chamber

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

I congratulate my hon. Friend the Member for Folkestone and Hythe (Damian Collins) on securing today’s debate and chairing the Joint Committee with such aplomb and expertise. I thank Members from all parties on the Committee—from not just this House, but the other place—for their incredibly hard work. I put on the record my thanks to them; as my hon. Friend said, Baroness Kidron and Lord Gilbert are with us today. I thank them all for their extremely thorough and detailed work. We have been studying their report—all 191 pages—very carefully, and it will definitely have an impact on the legislation as it is updated.

I also thank the Select Committee on Digital, Culture, Media and Sport and its Chair, my hon. Friend the Member for Solihull (Julian Knight), for its work. I look forward very much to its report, which my hon. Friend said would be published imminently. I encourage the Committee to ensure that it is indeed published as soon as possible, so that we can take account of its recommendations as well. I can confirm that we will be making changes to the Bill in the light of the recommendations of the Joint Committee report and those of the anticipated report from the Select Committee. We understand that there are a number of respects in which the Bill can be improved substantially. The Government certainly have no monopoly on wisdom, and we intend to profit from the huge experience of the members of the Committees, and Members of the House, in making improvements—significant improvements —to the Bill. We intend to produce a revised and updated Bill before the end of the current Session.

We intend this Bill to be a world-leading piece of legislation. We believe that the United Kingdom has an opportunity to set a global example which other countries will follow. As the hon. Member for Pontypridd (Alex Davies-Jones) said, the Bill has been some time in gestation, but because this is such a complicated topic, it is important that we get the legislation right.

This is, I think, a good moment to thank previous Secretaries of State and Ministers for the work that they did in laying the foundations on which we are now building—in fact, in building the walls as well; we are just putting the roof on. In particular, I know of the work done in this area by my right hon. and learned Friend the Member for Kenilworth and Southam (Jeremy Wright) and my right hon. Friend the Member for Basingstoke (Mrs Miller), and also the work done by my hon. Friends the Members for Gosport (Dame Caroline Dinenage) and for Boston and Skegness (Matt Warman). I am sure that the whole House will want to thank them for the fantastic work that they did in taking us to the point where we now stand.

I entirely agree with the sentiments expressed by the Chairman of the Joint Committee, my hon. Friend the Member for Folkestone and Hythe, who said in his opening speech that social media firms had brought this legislation on themselves by the irresponsibility that they have often shown by placing profit ahead of humanity. That was powerfully illustrated by the evidence presented to the Joint Committee, and separately to the United States Senate and The Wall Street Journal, by the Facebook whistleblower Frances Haugen, who explained how Facebook’s use of algorithms—mentioned by Members, including my hon. Friends the Members for Gosport and for Bosworth (Dr Evans)—prioritised profit by promoting content that was harmful or incendiary simply because it made money, with scant, if any, regard to the harm being caused. Our view is that such an attitude is not only inappropriate but wrong.

Two or three Members have referred to the tragic suicide of 14-year-old Molly Russell, which followed a huge amount of very troubling suicide-related content being served up to her by Instagram. That sort of thing simply should not be happening. There are all too many other examples of social media firms not promptly handing over identification information to the police—I encountered a constituency case of that kind a couple of years ago—and not taking down content that is illegal, or content that clearly contravenes their terms and conditions.

This state of affairs cannot persist, and it is right for the House to act. I am heartened to note that, broadly speaking, we will be acting on a cross-party basis, because I think that that will make the message we send the world and the action we are taking all the more powerful. However, as Members have said today, even before the Act is passed, social media firms can act. They can edit their algorithms tomorrow, and I urge them to do exactly that. They should not be waiting for us to legislate; they should do the right thing today. We will be watching very closely: the House will be watching, and the public will be watching.

[Kevin Hollinrake]

Will my hon. Friend give way?

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[Chris Philp]

Very briefly.

[Kevin Hollinrake]

I will be very brief. My hon. Friend has talked about cross-party working, and there is clearly cross-party consensus that paid-for advertising should be included in the scope of the Bill. Is that something that he intends to do?

[Chris Philp]

My hon. Friend anticipates my next point. I was about to come on to some of the specifics—very quickly, because time is short.

I am not going to be pre-announcing any firm commitments today because work is still ongoing, including the collective agreement process in Government, but on fraud and paid-for advertising, we have heard the message of the Joint Committee, the Financial Conduct Authority, the financial services sector, campaigners and Members of this House such as my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). The right hon. Member for East Ham (Stephen Timms) raised this, as did the right hon. Member for Barking (Dame Margaret Hodge) and my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken). I was at Revolut’s head office in Canary Wharf earlier today and it raised the issue as well. It is a message that the Government have absolutely heard, and it is something that we very much hope we will be able to address when we bring the Bill forward.

I cannot make any specific commitments because the work is still ongoing, but that message is loudly heard, as is the message communicated by the right hon. Member for Barking, my right hon. Friend the Member for Basingstoke and the hon. Member for Bath (Wera Hobhouse) on the work by the Law Commission on the communications offences, which will really tighten up some of the issues to do with what are essentially malicious or harmful communications, issues such as cyber-flashing and issues to do with epilepsy that we have heard about this afternoon. We are studying those Law Commission proposals very positively and carefully, as the Joint Committee recommended that we do.

We have also heard clearly the messages concerning commercial pornography. We understand the issues presented by the fact that the Bill, as drafted, does not cover that. Again, that is something we are currently working on very hard indeed.

Anonymity is another important issue raised today by my right hon. Friend the Member for Basingstoke and the hon. Member for Upper Bann (Carla Lockhart), among others. They and the Joint Committee have suggested that users should be given the option to protect themselves from anonymous content. They also addressed the critical question of traceability when law enforcement needs to investigate something. Again, those messages have been heard very clearly and we are working very hard on those.

That brings me to the tragic case raised by the hon. Member for Reading East (Matt Rodda) of his constituent Olly, who was so appallingly murdered; the murder appears to have been organised online. Under the Bill as drafted, organising an act like that—an illegal act—will be dealt with. I have just mentioned the point about traceability, which we are studying very carefully. The hon. Member said he had some concerns that the social media companies concerned did not provide the police with the identification information required when requested. I had a similar case a couple of years ago with Snapchat. If he could look into the details of that and come back to me with the specifics, I would be very interested to hear those because that would give us additional evidence if further steps need to be taken via the amended Bill. If he could come back to me on that, I would be very grateful.

A number of Members have rightly raised the point about transparency and understanding exactly what these social media firms are doing. The right hon. Member for Barking made that point powerfully, as did the hon. Member for Newcastle upon Tyne Central (Chi Onwurah). Of course, the Bill does give Ofcom extremely wide-ranging powers to require information to be delivered up. It also imposes transparency obligations upon these companies. There are criminal sanctions on individuals if those provisions are broken, and we have heard clearly the suggestion that those be brought forward and commenced much earlier. The Bill will also contain strong protections for free speech. I have not got time to talk about that more, but protecting free speech clearly is very important.

The country demands action, this House demands action and we will take it.

Oral Answers to Questions

Chris Philp Excerpts

Thursday 6th January 2022 Commons Chamber

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

Happy new year, Mr Speaker. The Gambling Act review is a priority for the Department. We are currently working very carefully through the evidence, including the 16,000 submissions that we received. Our intention is to find ways of introducing reforms to prevent the serious harm caused by gambling addiction while allowing those who can bet safely to do so, and we will publish a White Paper setting out our plans in the very near future.

[Rachael Maskell]

With gambling firms grooming and sucking vulnerable people into a web of debt and despair, it is crucial that the Government outlaw their exploitative practices as soon as possible. As for their victims, will the Minister commit to talk to Ministers in the Department of Health and Social Care so that, alongside his strategy, a comprehensive public health strategy is generated to provide support for people who have experienced gambling harm and to protect people from being sucked into that place?

[Chris Philp]

I agree with the hon. Lady. There are some extremely troubling practices, particularly among online gambling firms, that, as she says, lead people down a path to a very dark place that sometimes leads to suicide. I have met many of the families whose sons, daughters, husbands or wives have tragically committed suicide as a result of gambling addiction.

On co-operating with DHSC, I have already met my colleague the Health Minister to discuss this issue and will be meeting her again on this topic. I have also met NHS clinicians such as Dr Matt Gaskell, who runs the Northern Gambling Clinic in Leeds, to discuss these issues. I have received his very interesting, constructive and useful ideas, which are feeding directly into the review.

[Tracey Crouch (Chatham and Aylesford) (Con)]

While taking evidence from fans during the football review, I was struck by their unprompted concern about the amount of gambling-related content in football. I appreciate that the Minister is new in his role, but could he tell the House whether he or his predecessor have had a chance to meet football fans to discuss their concerns ahead of publication of the review?

[Chris Philp]

I thank my hon. Friend for her work in this area, and particularly for her work on the fan-led review. As a fan of Crystal Palace—a proud south London club—I am very keen to make sure that football fans’ voices are heard. Next week, I am meeting a number of sporting organisations, including the Lawn Tennis Association, the England and Wales Cricket Board, the Rugby Football League, the Football Association, the Football League and England Golf. Following the conversation that my hon. Friend and I had on the phone a day or two ago, I have already asked my office to arrange a meeting with the Football Supporters Association, which I hope will happen in the coming days or weeks.

[Jim Shannon (Strangford) (DUP)]

I welcome the Minister’s commitment to the changes that we all wish to see, but does he believe that the review will result in a strengthening of measures to prevent under-age gambling? When can we expect to see the desperately needed changes come before the House?

[Chris Philp]

Yes, I expect that we will see a strengthening of age-related measures and, indeed, a strengthening of measures more widely, for the reasons that we have mentioned already. Because it is urgent, as the hon. Member says, we intend to publish the White Paper as soon as possible in the coming months.

[Andy Carter (Warrington South) (Con)]

8. What steps her Department is taking to help support the UK film and television industry. w

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[Andrew Rosindell (Romford) (Con)]

I know that my hon. Friend the Minister will agree that the singing of the national anthem is something that provides a great sense of unity and pride in our nation. In this year of the Queen’s platinum jubilee, will he take steps to encourage national broadcasters to play the national anthem and ensure that the BBC restores it at the end of the day’s programming before it switches to News 24?

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

We fully support the singing of the national anthem, Her Majesty the Queen and other expressions of patriotism, including the flying of the Union Jack. The more we hear the national anthem sung, frankly, the better. Of course, organisations such as schools are free to promote it, and the more we can do in this area, the better it will be.

[Several hon. Members rose—]

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[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The minor reforms made as a result of the collapse of the Football Index by the Secretary of State’s Department are thin gruel for my constituents who lost thousands through that scam. What are the Government doing to ensure that both the Gambling Commission and the Financial Conduct Authority are fit for purpose, and that my constituents get the justice that they deserve after the collapse of that scam, the Football Index?

[Chris Philp]

The Gambling Commission has revoked the licence of the Football Index’s operator. The individuals have surrendered their personal licences. The matter has been referred to the Insolvency Service, which is investigating allegations of directors’ misconduct. It has the power to conduct criminal investigations and criminal prosecutions, including for fraud if appropriate. On the broader question of compensation, there is no statutory basis upon which compensation can be paid to people who have lost money as a result of the collapse of a betting firm, but the investigations by the Insolvency Service are ongoing.

The Attorney General was asked—

Body Image in the Media and Online

Chris Philp Excerpts

Wednesday 24th November 2021 Westminster Hall

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

It is a great pleasure to serve under your chairmanship, Mr Dowd. We used to appear opposite each other on occasion, so it is nice to serve under your chairmanship now. I start by congratulating my hon. Friend the Member for Bosworth (Dr Evans) on tabling this important topic for discussion this afternoon and for speaking with such eloquence. The examples he gave were powerful and make a strong case for the need to do more in this important area for the sake of all our children and, indeed, many adults who suffer problems and issues as a result of images they see online. I take the opportunity to assure the House and, indeed, the public that the Government takes those problems seriously.

There are two projects under way designed to address exactly those issues, which provide useful platforms for doing more. My hon. Friend the Member for Bosworth touched on both. The first is the online advertising programme, which, as the name implies, is designed to address the content of paid-for online advertising, where some of the images he describes appear. As he said, the Advertising Standards Authority launched a call for evidence on 21 October that remains open until 13 January, so there are opportunities for people to make their views known. I hope that the ASA will be able to do more in this area in response to that.

In the coming months, the online advertising programme consultation will be launched and, again, that will be an extremely useful vehicle into which points such as the ones made today can be fed. That will likely lead in due course to further measures in the online advertising space. It is clear that there is a real opportunity through the programme to do more in this area. Given the call for evidence and the consultation in the coming months, the issues raised by my hon. Friend the Member for Bosworth are extremely timely and very welcome. He has picked his moment with a great deal of good fortune.

There is not just the question of advertising but that of user-generated content, and that is in the scope of the draft Online Safety Bill, which my hon. Friend mentioned. It was published last May and I can see he has a copy of it in front of him, which is diligently tagged up. I am delighted he has been studying it so carefully.

As hon. Members will know, the draft Bill is currently going through a pre-legislative scrutiny process. A Joint Committee of both the House of Commons and the House of Lords, chaired by my hon. Friend the Member for Folkestone and Hythe (Damian Collins), is looking very carefully at it. The Committee has taken extensive evidence and will be publishing a report on or before 10 December, which may well address some of the issues. The Government are certainly in listening mode on the draft Online Safety Bill and we are ready to make changes, amendments and improvements to the Bill where there is a case to do so. There is scope for us to do more in this area. The Bill has a number of important mechanisms that will directly help address some of the issues that have been raised.

Let me pick up a couple of the points raised by my hon. Friend the Member for Bosworth. First, he mentioned the importance of algorithms. As he said, this applies not only to matters of body image and the fact that he has lots of pictures of well-built men appearing in his timeline, for the reasons that he explained, but elsewhere. These algorithms drive all kinds of content, some of which is harmful. In fact, Frances Haugen, the Facebook whistleblower, explained how the algorithms promote content that is often harmful, or even hateful, to individuals for purely commercial reasons. The algorithms do that not through any exercise of editorial judgment, but simply to drive user engagement, and therefore revenue, for the companies concerned. It is a purely commercial, profit-driven activity.

My hon. Friend made a point about transparency. When they are asked to talk a bit more about what these algorithms do, the companies very often refuse to disclose what is going on. Therefore, some of the most important measures in the draft Online Safety Bill are to do with transparency. There is a transparency duty on the category 1 companies—the largest companies—to be transparent about what is going on.

There are also powerful information rights for Ofcom, whereby Ofcom can require the companies concerned to provide information about a whole range of things, including algorithms. Companies will have to provide that information to Ofcom, providing the transparency that is so woefully lacking. If they fail to meet either the transparency duty or the information duty, that is, responding to an information request, they can be fined up to 10% of their global revenue. In the case of the information disclosure duties, not only can the company be punished by way of extremely large fine, but there will also be personal criminal liability for named executives. There will be a big change in the transparency about algorithms and how information is provided.

In the context of the draft Online Safety Bill, my hon. Friend also mentioned content that is legal but harmful. There is clearly a strong case to say that material that causes either young people or adults to develop anxiety about their body image can potentially be harmful. Once we have passed the Bill, the Ofcom consultation process will define the priority harms, which will be the harms where category 1 companies will have to take particular care. They will have to lay out in their terms and conditions how they will address issues with priority harms. There is a mechanism through which representations can be made, and the argument can be made that matters concerning body image ought to included.

[Dr Luke Evans]

I am very grateful for the comprehensive answers that the Minister is giving. On that secondary point, will the consultation be coming back to the House of Commons to determine those priorities or will they be set out after a consultation that will be delivered straight to Ofcom for it to make its judgment?

[Chris Philp]

There will be an extensive consultation run by Ofcom, both on the matters considered to be priority harms and on the codes of practice that go alongside those. The Bill, as drafted, will see those codes of practice and the list of harms come back to the Secretary of State, and there will then be a parliamentary procedure, so Parliament will have an opportunity to look at the list of priority harms and the codes of conduct to be sure that Parliament is happy with them. There are various debates about whether the mechanisms to do that can be fine-tuned in some way, but it will not just disappear into a void with no further interaction with Parliament at all. In providing evidence to Ofcom, there will be an opportunity for my hon. Friend and for people who are campaigning with such passion on this issue to make representations.

[Mr Jonathan Lord (Woking) (Con)]

I join the Minister in congratulating my hon. Friend the Member for Bosworth (Dr Evans) on introducing this debate so eloquently. Can I take the Minister back to advertising? I spent many years working in British advertising agencies in London. I was a little concerned about the advertising ban in the Health and Care Bill, which we have been discussing in the last couple of days. We have a world-leading industry, and I gently say to my hon. Friend and to the Minister that if advertising is labelled in this way—I am talking more about the traditional media than online advertising—then either the health warning is so small that no one notices it or it is large enough to have a lot of notice. At that point, certainly the larger advertising agencies will ensure that they do shoots to get what they want without any retouching. I urge the Minister to be cautious and protect our world-leading advertising industry, which sets higher standards than virtually anywhere else in the world.

[Chris Philp]

I thank my hon. Friend for his intervention, given that it is built on years of expertise in the industry. These issues require careful thought and there are balances to strike. We do not want to cause unreasonable problems for the advertising industry.

That is why the Government and various regulatory authorities are looking at this in such a careful way, with the call for evidence that is running at the moment, the consultations in the coming months on the online advertising programme and the consultation on the priority harms and codes of conduct that Ofcom will conduct in relation to the online safety Bill. Through those consultations, there will be an opportunity for campaigners to put forward their point of view on body image. Obviously, the advertising industry will have extensive opportunities to put its case. There will be opportunities for regulators and Parliament to think about how that balance can most appropriately be struck. We fully recognise that, as in so many areas, there is a balance to strike in ensuring we reach the right solution.

[Dr Luke Evans]

I absolutely agree on striking that balance. To address the earlier intervention, I hope that no one would ever see a label on these images, because companies would be socially responsible and choose not to doctor them. However, should those images be doctored for any reason, having that label—a small “p”, a small “b”, or whatever it happens to be—alerts the user to the fact that, when they are scrolling through hundreds of images, particularly on social media, all is not as it seems. I think that is a fair balance.

[Chris Philp]

I thank my hon. Friend for his intervention. His comment is probably directed as much at my hon. Friend the Member for Woking (Mr Lord) as at me. Clearly, there are important points to debate.

In conclusion, the Government take the issue extremely seriously, not just in the Department for Digital, Culture, Media and Sport but across Government, such as in the Department of Health and Social Care and other Departments. We recognise that serious psychological harm is potentially being caused, particularly to young people but more widely as well. We want to ensure that reasonable steps are taken to avoid harm being inflicted.

I hope Members across the House, with opinions on both sides of the argument, will fully engage with the consultation on the online advertising programme and the call for evidence from the Advertising Standards Authority. I hope they will also fully engage, after the Bill passes, with Ofcom when it consults on the priority harms and codes of conduct. Some extremely important issues and arguments have surfaced on both sides in today’s debate. We look forward to debating the matter further in the coming months to ensure we strike that balance. We need to protect people who need protection, so that the internet is not an ungoverned, lawless space where anything goes, but equally we need to ensure that industries, such as advertising, are not unduly penalised or circumscribed. I am confident that the House, on a cross-party basis, can apply its collective wisdom and strike that balance. I look forward to working with colleagues to achieve that.

Question put and agreed to.

Oral Answers to Questions

Chris Philp Excerpts

Thursday 18th November 2021 Commons Chamber

[Carolyn Harris (Swansea East) (Lab)]

5. Whether she plans to publish a White Paper on the gambling review.

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

I thank and commend the hon. Member for her energetic campaigning and leadership on this issue over many years as chair of the all-party parliamentary group for gambling related harm. We had a constructive meeting, along with my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and a Member for a fine constituency in Scotland—the hon. Member for Inverclyde (Ronnie Cowan)—just yesterday. We are in the process of preparing a White Paper that will set out our vision for gambling regulation in the coming months. I look forward to working closely with members of the APPG on this issue in the weeks ahead.

[Carolyn Harris]

The recent Public Health England report into the impact of gambling harm found that at-risk gamblers were twice as likely to gamble online than the rest of the general gambling population, so can we be assured that the forthcoming gambling White Paper will protect those most vulnerable to gambling harm by ensuring that restrictions to online stakes are introduced at the same level as those to on-land stakes?

[Chris Philp]

The hon. Lady is absolutely right to refer to those who suffer acute harm. Yesterday I met many people whose relatives have committed suicide, or who have lost their homes and whose families have been destroyed, to discuss the issue. I agree with the PHE report that online gambling can often be a lot more pernicious and addictive than in-person gambling. We will certainly be looking at that. We are acutely aware that the restrictions introduced to land-based stakes for fixed odds betting terminals could be applied online in some way, and are carefully studying how that could be calibrated.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

Will my hon. Friend look seriously in the White Paper at the abusive use by gambling companies of VIP rooms, through which companies deliberately target those who are gambling massively and losing massively to encourage them to gamble more and lose more? It is an immoral practice. Will he make certain in the White Paper that the Government will deal directly and immediately with this issue?

[Chris Philp]

I thank my right hon. Friend again for our meeting this week. I agree that actively encouraging—indeed, even inciting—people to gamble more without reference to affordability or their ability to pay is a damaging practice. We certainly intend to address that through the White Paper.

[Liz Twist (Blaydon) (Lab)]

6. What steps the Government is taking to help ensure that those responsible for the collapse of Football Index are held to account.

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

The Gambling Commission has revoked BetIndex’s operating licence and senior members of that company have surrendered their personal management licences. The Gambling Commission has also referred the company to the insolvency service to consider whether the directors breached insolvency or even fraud laws. We look forward to the Insolvency Service’s report on the conduct of those directors.

[Liz Twist]

Too many of my constituents have been in touch to say that they have lost substantial amounts of money on the Football Index, so will the Minister explain further what is being done to help the Gambling Commission to understand these complex betting propositions in order to ensure better protections for customers, such as my constituents?

[Chris Philp]

The Government commissioned a detailed report by Malcolm Sheehan QC that was published towards the end of September. The report looked to ensure that all the relevant lessons are learnt, so that people who gamble are protected. Regarding those who lost money to BetIndex, the wind-up proceedings are ongoing at the moment and it is likely that some amounts will be available to be reimbursed to creditors, which would include customers. We should obviously let that process unfold.

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

I commend my right hon. Friend for his continued active advocacy on behalf of British horse racing and Newmarket in particular. I am pleased to tell the House that racecourses are accessing £21 million from the sport survival package. They have also had £28 million in cash-flow and hardship funding, in addition to which the Horserace Betting Levy Board provided £97 million in 2019-20 to support the sport.

[Matt Hancock]

I am very grateful for the work that the Department and the Minister have done in the pandemic to support horse racing, but as a major contributor to the economy and soft power, and with one in three jobs in Newmarket in my constituency connected with horse racing, is it not vital that we strengthen further the horserace betting levy to ensure that all betting makes a contribution and to ensure that we get the support for horse racing, which is such a glorious sport?

[Chris Philp]

I agree entirely about the importance of horse racing to the UK, both economically and more generally. As I have said, the levy contributed £97 million in the year before the pandemic, about 10% more than the forecast. Even in the pandemic year 2020-21, it contributed £80 million, so generally speaking the levy has returned more money than was initially expected. However, we are always willing to look at evidence, so if there is anything that my right hon. Friend would like to send in that we could carefully consider, I would be delighted to look at that.

[Antony Higginbotham (Burnley) (Con)]

T2. If she will make a statement on her departmental responsibilities.

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[Ronnie Cowan (Inverclyde) (SNP)]

The actions of Football Index can only be described as scandalous. The Scottish National party called for an inquiry, and that has been delivered. Can the Minister guarantee that the actions the Government take as a result of the inquiry will ensure that such shameful behaviour by the gambling firms will never be repeated?

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

I thank the hon. Member for his question. We are taking this very seriously. As I said on an earlier question, a detailed review by a QC is being conducted already to make sure that the regulatory action—whether by the Gambling Commission or, in different circumstances, the FCA—is appropriate. It is important that these gambling firms are looked at very carefully, and it is our intention that the Gambling Commission do that.

[Jessica Morden (Newport East) (Lab)]

Can I reiterate the earlier question from my hon. Friend the Member for Blaydon (Liz Twist) about the collapse of Football Index, and reiterate the need for Ministers to look at the issues of better redress and the failings in this case, on behalf of my constituents affected?

[Chris Philp]

Yes, it is being looked at extremely carefully, and I can assure the hon. Lady that that work is going on.

The Attorney General was asked—

Racism in Cricket

Chris Philp Excerpts

Tuesday 9th November 2021 Commons Chamber

[Navendu Mishra (Stockport) (Lab)]

(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport if she will make a statement on reports regarding racism in cricket.

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

I am appearing here this afternoon in place of the Minister for Sport—the Under-Secretary of State, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston)—who is in Geneva having meetings with football officials.

I will start by being very clear about something on which I know the whole House will agree: there is no place for racism in sport. Indeed, there is no place for racism anywhere in society. It must be confronted, it must be eradicated and it should never be written off as just “banter”.

The Government are extremely concerned by the reports of racism at Yorkshire county cricket club. Quite simply, the situation faced by Azeem Rafiq was unacceptable. It should never have been allowed to happen in the first place, and it should have been dealt with properly during the initial investigation. We have made it clear to the England and Wales Cricket Board that this requires a full, transparent investigation, both of the incidents involving Azeem Rafiq and of the wider cultural issues at Yorkshire county cricket club. The ECB is now investigating the matter fully. It took action against the Yorkshire club on Friday, stripping it of the right to host international matches, and has suspended a player.

There have been a number of resignations from the Yorkshire board—quite rightly—including that of its chairman. Lord Patel of Bradford has taken over as chairman, and has set out the approach that he will be taking to tackle the issue at Yorkshire. Crucially, he has started by apologising to Azeem Rafiq, but we know that that will not undo the pain that Azeem feels. More action is needed, and we have called on Lord Patel and the ECB to investigate fully, to eradicate racism where it exists, and to tackle the culture that can support it. In addition, the ECB is now undertaking a regulatory process. It must take strong action where it is necessary, and that action must be transparent and swift, for the benefit of cricket.

The ECB has also launched the independent commission for equity in cricket to look at wider issues that go beyond Yorkshire. It is chaired by Cindy Butts, a highly respected anti-racism campaigner. She is a board member of the Kick It Out campaign in football and is also, as you know, Mr Speaker, a lay member of your Committee for the Independent Parliamentary Standards Authority. I have great confidence in her independence and her phenomenal track record in this area. This terrible case—the awful case of the abuse that Azeem Rafiq should never have suffered, but did suffer—shows how much more needs to be done to stamp out racism in the game, and I urge anyone who has experienced discrimination in cricket to approach Cindy Butts’s commission and report what they have experienced. I understand that the Equality and Human Rights Commission has requested information about this incident. That is quite right, and I encourage the EHRC in its work.

Sport should be for everyone, and it should not take cases such as this to bring that to life. The Government applaud Azeem Rafiq’s courage in speaking out, and encourage anyone who has been similarly affected to do the same. This must be a watershed moment for cricket. The Government will closely scrutinise the actions taken by the ECB—the Minister for Sport met the board last week to discuss this topic—and by Yorkshire county cricket club in response to these damning allegations. The investigations to which I have referred must be thorough, transparent and public. That is necessary to restore the public’s faith in cricket in Yorkshire and beyond. Parliament is watching, the Government are watching and the country is watching. We expect real action, and the Government stand ready to step in and act if those involved do not put their own house in order.

[Navendu Mishra]

I am grateful to you, Mr Speaker, for granting this urgent question.

The leaked racism report from Yorkshire county cricket club has exposed the extent to which serious allegations of discrimination have been mishandled, covered up and sadly, it seems, entirely ignored over a long period. Players and former board members of the club have since come forward expressing their regret, but it is too little, too late. The question of how to address this should not be solely concerned with what to do next; rather, we should ask how the club arrived at such a low point. Why were players not properly investigated, why were no processes in place to address these allegations, and why did it take the leaking of the report to kick the club into action?

Members on both sides of the House have spoken publicly about how appalled they are, so I hope that the Minister will tell us today what concrete action the Government intend to take to tackle racism in sport. I know that my good and hon. Friend the Member for Leeds North West (Alex Sobel) wrote to Mr Mark Arthur, but unfortunately he has not received a response to his letter. The news over the past week has focused on cricket because of this report, but we know that it is not in cricket alone that racism and discrimination fester. The Government’s intervention on this particular issue must be a model for the way in which other sports address racism.

I want to express my solidarity with Mr Azeem Rafiq—who has shown great bravery in the face of this injustice—and with all who have been discriminated against in cricket and other sports. Sport should be for everyone. No one should be excluded or belittled because of their race, gender, sexual orientation or disability, and I hope that today will be a landmark in the addressing of these serious issues.

In the light of the leaked racism report—which I hope will be published in full this week—1 hope that the Equality and Human Rights Commission will investigate Yorkshire county cricket club and publish a full set of recommendations for how it will tackle racism in future. We must not forget that it was only when there were financial repercussions and corporate pressure that Yorkshire actually acted; that is simply unacceptable. We also know that, although nearly a third of all cricket players at grassroots level in the UK are from ethnic minority backgrounds, the figure drops to only 4% among cricketers with professional contracts. That too is shocking. I hope that today the Government will set out how they intend to work with the England and Wales Cricket Board to ensure there is independent scrutiny of the sport, so that incidents such as this never happen again and the sport is diversified at all levels.

[Chris Philp]

I shall try to respond briefly to those further questions from the hon. Gentleman.

I entirely agree that the conduct of Yorkshire county cricket club in trying to brush this matter under the carpet and ignore it was completely unacceptable, and it is right that the chairman and others have resigned. The club’s conduct has no justification whatsoever: it is disgraceful, and we condemn it unreservedly. The point about the transparency of these inquiries is important: they need to take place in public, they need to be open, and the country and Parliament need to be able to scrutinise them fully.

I also agree with what the hon. Gentleman said about the need for wider action in cricket. Clause 10 of the ECB’s own county partnership agreement requires it to increase ethnic minority representation, and we need to hold it to account to deliver that. As for the question of independent oversight of what Yorkshire and the ECB are doing, the Equality and Human Rights Commission is obviously independent, and is now rightly asking questions. The Government fully support that process, and, like Members of this House, will be following and scrutinising it extremely carefully.

[Sir Peter Bottomley (Worthing West) (Con)]

I stand in solidarity with the hon. Member for Stockport (Navendu Mishra), and thank him for bringing this issue to the House today. Let me recognise both his constituency and yours, Mr Speaker, by pointing out that the Lancashire league was the first to show that it was possible to have teams that were inclusive and could show an example to the rest of the country.

The issue raised by Matthew Syed in an article in The Times today was “What is the minimum test of credibility?” It is clear that this club has failed that test, but I do not think we should point the finger at just one club. We should be asking where discrimination, inequality and barriers to access exist in other sports and in other parts of life.

I say here, on the Floor of the House, that when we discovered that one of our local councillors in Worthing had posted unacceptable comments on the Patriotic Alternative white supremacist website, we suspended him. There will now be a by-election, and we have a south Asian candidate who is longing to be a Tory councillor. That shows that action can be taken, and whatever our party politics, we need to stand together on this.

The final point that I want to put to my hon. Friend the Minister is this: if we are going to ask the EHRC to take on this particular role in greater depth, it will need extra funding. I suggest that the Government talk to the EHRC to establish how much extra funding it needs and then add it on, so that this does not push aside other parts of the EHRC’s important work.

[Chris Philp]

I associate myself with the characteristically wise words of my hon. Friend the Father of the House. I agree that we need to stand together, across the whole House, in combating and fighting racism wherever it occurs in our society. The local example given by my hon. Friend was a good illustration of that. The EHRC is of course independent and will make its own decisions about what to investigate, but I think it is clear that the House is encouraging it in its work. It did, I believe, receive a funding uplift not long ago, but its funding arrangements remain under continual review.

[Jo Stevens (Cardiff Central) (Lab)]

I thank my hon. Friend the Member for Stockport (Navendu Mishra) for securing the urgent question. I too want to pay tribute to the bravery and persistence of Azeem Rafiq. He has already given others the courage to come forward, and I am sure that more will do so.

Racism destroys lives, and that is why allegations must be properly, fairly and transparently investigated. The handling of this case is a textbook example of what should not happen. A legal investigation team was second-guessed by the club’s panel, there was a failure to apply the legal tests correctly to the evidence gathered, and Yorkshire even changed the inquiry’s terms of reference part-way through, preventing the investigation team from drawing conclusions about institutional racism. One has to wonder whether it was taking lessons from the Prime Minister on that. Yesterday, Lord Patel took the first steps to begin to right these wrongs. The next step must be that the rest of the board leave their posts. Their role in this shameful fiasco gives them no right to continue to hold positions of power in the club. I, too, hope that the EHRC will formally investigate what has occurred.

Racism has no place in cricket or any other sport, and Michael Holding has said of this case:

“Each sport or industry can try to and put their house in order, but the message has to reach society at large or no real meaningful change can take place.”

Society at large includes all of us here, and it of course includes the Prime Minister. His well-publicised comments in the past have helped to enforce a culture where racism is seen as banter, so it was good to hear the strong words from the Minister today about committing to stamping out racism, but the Prime Minister and the Secretary of State need to understand that words alone are not enough. They must lead by example. Failing to do so gives credence and encouragement to racists.

[Chris Philp]

I think we should avoid making party political points on an occasion such as this. We should be standing together, as we have been doing, to resolutely condemn racism and to tackle it wherever it is found. That means ensuring that the ECB investigation is independent and transparent, it means supporting the work of the independent commission chaired by Cindy Butts, and it means supporting the EHRC in any work that it does. I agree with the shadow Secretary of State’s remarks about the board of the cricket club. They bear collective responsibility and I do not see how they can continue.

[Julian Knight (Solihull) (Con)]

I wish to thank the hon. Member for Stockport (Navendu Mishra) for bringing this urgent question to the House. I refer Members to my entry in the Register of Members’ Financial Interests. Like many cricket lovers in this country, I feel a fool. I thought my sport was more colour-blind than most, but it most certainly is not. At Yorkshire, it is clearly institutionally racist, and Lord Patel has the mother of all jobs in turning that once venerable club around. I would like to chide the club about the report, because, despite publicly promising to issue it to myself and to the Government, it has not yet done so. That report needs to be in our hands today.

Does my hon. Friend agree that this is more than a Yorkshire problem, and that it is a national problem within cricket? Although I agree that the likes of the ECB must now have a permanent place on the board at Yorkshire to ensure that it is guided to a better place, I think that we also need substantially better whistleblowing procedures in the sport. We also need the likes of Ebony Rainford-Brent and Michael Holding, who are an inspiration not just to cricket but to wider sports and to our society, to be front and centre in cricket’s battle against racism. It is going to be a tough fight, but I truly believe that the whole House will agree that it is one that must be won, out in the open so that we can all see exactly what is going on.

[Mr Speaker]

I say gently to the Minister that I totally agree that if information is being withheld from a Select Committee that is carrying out its duty, that is a major matter. I hope it will be resolved today on behalf of the Committee.

[Chris Philp]

I wholeheartedly agree with the Select Committee Chairman’s comments. On the question of the report, the Government have also requested to see it. As of about an hour ago, when I was last briefed on this, we had not received it. I would like to make it clear that the Select Committee and the Government should receive copies of the report and that it should be put into the public domain. I want to make it very clear today from the Dispatch Box that Yorkshire County Cricket Club should do that immediately. My hon. Friend made the rest of his remarks with great eloquence and power, and I agree entirely with every word that he said.

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

I certainly agree with all that has been said thus far, including what you have said from the Chair, Mr Speaker. Racism has no place in cricket, in sport or in society, period. This shocking episode has come out during the T20 world cup at a time when we should be celebrating all that is good in the game. That being said, Scotland might not have had the results we would have liked in the world cup, but the performance in qualifying was exemplary.

Turning to the important matters at hand, Azeem Rafiq must be commended for his bravery in coming forward and speaking out on Yorkshire’s shameful racist treatment of him. Conversely, Yorkshire’s actions have been disgraceful almost from start to finish. As we have just been hearing, their report remains unpublished. They have been forced into publishing a summary and only then sent a heavily redacted version to Mr Rafiq—a further sign that all was not right. The credibility of some of the report’s findings must also be questioned, with a racist term that was used against Mr Rafiq having been deemed to be “friendly and good-natured banter”. It is clear that Yorkshire have a lot of work to do, but does the Minister have confidence that the ECB is the right body to oversee a culture change in cricket, given that it has been repeatedly warned about this issue for years? Moreover, does he agree with the Health Secretary’s suggestion that if the ECB does not take strong action as a result of these events, it is not fit for purpose?

[Chris Philp]

I broadly agree with many of the sentiments that the hon. Gentleman has just expressed. I agree that racist abuse of the kind suffered by Azeem Rafiq is certainly not banter. It is racist abuse, and it should be called out and action should be taken whenever and wherever it occurs. In relation to the ECB, I have a high level of confidence in the independent commission for equity in cricket, which is being chaired by Cindy Butts. As I have said, she is a highly respected anti-racism campaigner. The eyes of the country and of Parliament are upon these inquiries, and the EHRC is looking into this as well. We expect them to do their duty.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the hon. Member for Stockport (Navendu Mishra) for bringing forward this important urgent question. As somebody who has played cricket in Yorkshire for the best part of 40 years—sadly not for Yorkshire, but in Yorkshire—I have to say that I have not heard that term expressed on a cricket field or in a dressing room for many decades. Nevertheless, this reflects very badly on the whole of Yorkshire cricket. When we get to the bottom of all this, may I urge my hon. Friend to ensure that those who are responsible for this kind of language are sanctioned, and that the people who have described this language as “banter” also face sanctions?

[Chris Philp]

I agree with everything that my hon. Friend has said. That language is clearly not banter. Those who used it should face consequences, and those who tolerated it, condoned it and even covered it up and hid it should face sanctions as well.

[Imran Hussain (Bradford East) (Lab)]

Can I first join others in condemning the vile language directed at Azeem Rafiq and the blatant culture of racism that has been exposed? It is shocking that, even after all this, this House has requested a copy of the full report and been denied it. The language faced by Azeem was not friendly banter, as has rightly been pointed out. It was racism, plain and simple, and the failure of Yorkshire cricket to recognise it taking place under its nose is just the tip of the iceberg of a much bigger problem. That problem is the normalisation of racism in so many sports such as cricket and football. You only have to ask any young person in Bradford who has ever picked up a bat or a ball about the obstacles they face on a daily basis because of this normalisation. I have listened to the Minister, but the reality remains that we cannot tackle the racism present in many sports if we change only the boards and not the culture. What the Minister needs to do today is to commit to a top-to-bottom review of professional sporting bodies to directly challenge the normalisation of racism.

[Chris Philp]

I agree that the normalisation of racism is something that we all have to fight. Each and every one of us has a duty and an ability to do that. As far as cricket is concerned, as I have said, I have enormous confidence in Cindy Butts—a highly respected anti-racism campaigner—to lead the independent commission for equity in cricket and sort out the problems that evidently exist there. Across society more widely the Government have a hate crime strategy, we have done a race disparity audit and we have a race disparity unit. We will shortly be bringing forward an online safety Bill, which is designed to clean up the sewer online where so much of that hatred is often spread.

[Naz Shah (Bradford West) (Lab)]

I thank my hon. Friend the Member for Stockport (Navendu Mishra) for securing this question and I thank Azeem Rafiq for his bravery. Not only was he exposed to racism and suffered from that, but he was denied an inquiry, and only yesterday was it acknowledged that what he did was whistleblowing. Much of the racism he faced at Yorkshire county cricket club was blatant racism and Islamophobia, and he has said as much. I recognise that the Minister and other members of the Government have stood in solidarity with colleagues across party in challenging the racism in this specific case, and I welcome the appointment of my fellow Bradfordian Lord Kamlesh Patel, but it cannot be left to him to fix this culture on his own.

I appreciate that the essence of this debate is about cross-party unity, but the truth is that for two and a half years we have been waiting for a definition of Islamophobia. No Government advisers have been appointed in two and a half years and the definition provided by the all-party parliamentary group on British Muslims, which the Muslim community stood behind, has been denied by the Government. Given the collegiate nature of this debate, will the Minister and the Government meet with the all-party parliamentary group so that we can reach a definition of Islamophobia? Without that, how do we understand that Islamophobia is rooted in racism, and what do we do to address it?

[Chris Philp]

I thank the hon. Lady for her question. I repeat my admiration for Azeem Rafiq’s courage in standing up to the appalling racism he suffered at Yorkshire county cricket club. I understand that that is by no means an isolated example. Root and branch change is needed at that club; I hope that the recent appointment of Lord Patel of Bradford is an important first step, but it is only a first step. Root and branch change is needed. Across cricket more widely, the independent commission for equity in cricket, chaired by Cindy Butts, has that mission in mind.

On the more general question, of course we need to create a culture in this country where racism is fought at every step and every stage. That is why we have a race disparity unit. That is why we have a hate crime strategy. That is why we are bringing forward the online safety Bill. In relation to the hon. Lady’s particular question about the definition, the Minister for Equalities, my hon. Friend the Member for Saffron Walden (Kemi Badenoch), is working on that. I will convey the question to my hon. Friend and ask her to make contact urgently with the hon. Lady to discuss that issue.

[Robbie Moore (Keighley) (Con)]

Yorkshire county cricket club is supposed to represent each and every person of our great county, but these reports show that it has failed our entire Yorkshire community and the whole sporting community. It is right that the board members at Yorkshire who turned a blind eye to racist accusations have resigned, but does my hon. Friend agree that the ECB must now take responsibility for neglecting racism in cricket and that individuals there must also consider their positions?

--- Later in debate ---

[Chris Philp]

I agree with my hon. Friend that the failings at Yorkshire county cricket club are deep and have been long lasting. Of the people responsible, I think some have resigned already, but there are others who, as the shadow Minister and I said earlier, should now consider their position and do the same. My colleague the sport Minister met the ECB last week to raise exactly those issues, to hold it to account and to make clear that the expectation of Parliament and the public is that it takes responsibility for fixing the problems that it has allowed to occur on its watch. We are scrutinising its actions. The public are watching and Parliament is watching; we now expect them to act.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

Let me first congratulate my dear hon. Friend the Member for Stockport (Navendu Mishra) and thank him for securing this urgent question. We are talking about structural racism and institutional inequality in society. Does the Minister agree that community sports projects run in the community, which bring people of different faiths and backgrounds together, are key to breaking racism in sport? Will he agree to meet successful teams in my constituency to understand the challenges they face?

[Chris Philp]

The hon. Gentleman is quite right to point to grassroots sport as the place where everything starts and the place where culture is set. I think the person he should meet is the sport Minister, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston); he is in Geneva today, but I will certainly pass on that request and I am certain he will readily agree.

[Scott Benton (Blackpool South) (Con)]

This appalling case follows several high-profile examples of racism in other sports this year. The efforts to address racism in football, for example, through taking the knee have sadly met with a mixed reaction from fans. Although it is clear that we need a new anti-racism strategy across all sports, it is important that that strategy brings everybody with it. What steps have the Government taken to develop such an initiative across all sports?

[Chris Philp]

In relation specifically to football, in response to what happened last summer, the scope of football banning orders was extended to cover not just racist abuse happening in football grounds, but racist abuse perpetrated by fans online. Quick and decisive action was taken there. The online safety Bill is designed to address racist abuse online more widely, and the hate crimes strategy and the race disparity unit are designed to fight racism in sport and across society as a whole.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I associate myself and my party with remarks already made in this place. Racism is absolutely unacceptable anywhere. In Scotland we have a useful expression, “We’re a’ Jock Tamson’s bairns,”—we are all John Thomson’s children—meaning that we are all the same. We are all human beings.

I served for 12 years in the Scottish Parliament. For a long time, sectarianism has been a scar on the face of Scottish sport, but I give credit where it is due: the Scottish Government have recognised that and are working hard to tackle it. Some would say perhaps not successfully, some would say successfully, but never mind—the intention is there. May I recommend to Her Majesty’s Government that they talk to the Scottish Government about what has been done north of the border, as it may well help to stamp out the evil of racism in the rest of the UK?

[Chris Philp]

We always talk to Administrations around the whole United Kingdom, but I assure the hon. Gentleman that this Government’s commitment to stamping out racism in cricket, in sport and anywhere we find it is absolute.

[Alex Davies-Jones (Pontypridd) (Lab)]

I too am grateful to my hon. Friend the Member for Stockport (Navendu Mishra) for raising the important question of racism in cricket in the House. Just yesterday, I met Cricket Wales and heard about the work it is doing in my constituency with the brilliant Miskin Manor Cricket Club to tackle misogyny and inequality at grassroots level. Racism and discrimination in any form is utterly unacceptable, and it cannot be that cricket is allowed to continue as a sport for only the most privileged communities. I ask the Minister exactly what steps his Department will be taking to break that cycle and encourage true diversity in sport. We need deeds, not words.

[Chris Philp]

Diversity and inclusion run through the entire ethos of the Department for Digital, Culture, Media and Sport’s interaction with sporting bodies and the way it funds sport, from grassroots levels, which the hon. Member for Ealing, Southall (Mr Sharma) mentioned a moment ago, right up to the top. It touches every element of the way we fund and work with sport. On the question of cricket in particular, Cindy Butts’s independent commission for equity in cricket is designed to address exactly the questions the hon. Member for Pontypridd (Alex Davies-Jones) rightly just raised.

[Marsha De Cordova (Battersea) (Lab)]

I start by congratulating my hon. Friend the Member for Stockport (Navendu Mishra) on securing this important urgent question. I agree with the remarks that have already been made this afternoon. Racism in all its forms, whether in sport or society, is wrong and needs to be stamped out. We all saw what happened last summer, when the racist attacks on our black England football players took place, and the lack of leadership, as many would describe it, from the Home Secretary and the Prime Minister when they failed to condemn it. To tackle racism requires leadership. If the Minister is going to bring his words to life, he needs to commit today to implementing a proper race equality strategy that will seek to tackle institutional and structural racism across society, including in sport, the labour market and our education system.

[Chris Philp]

When we saw the racist abuse suffered by those footballers in the final of the European championships at Wembley back in the summer, there was universal condemnation of it. It was universal condemnation followed by action, in the form of the extension of those football banning orders to include online racist abuse, which previously was not covered and is a matter that will be further addressed in the Online Safety Bill in the very near future. On the wider questions, we had the Commission on Race and Ethnic Disparities give its initial report and the Government will be coming forward with a further plan in that area, which my colleague the Minister for Equalities will be leading.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

May I strongly associate myself with the praise for the courage of Azeem Rafiq, the condemnation of institutional racism at Yorkshire cricket club more generally and the concerns raised by my hon. Friend the Member for Bradford West (Naz Shah) about the lack of a Government-backed definition of Islamophobia? There are two other specific things the Minister should focus on. First, last year Sport England found a 14-point gap between the percentage of white British people participating in sport and of British Asians taking part in sport. So it would be good to know what the Minister is going to do to put a target in place to bring that gap down quickly. Secondly, members of Yorkshire cricket club were raising concerns about what was going on, but the governance structures at Yorkshire clearly did not allow those concerns to get to the very top and have an impact. There is, rightly, a campaign for fans to have a seat on the board of football clubs. Is it not time for consideration to be given to fans having a place on the board of cricket clubs as well?

[Chris Philp]

The question about encouraging participation is a good one. My colleague the sports Minister, who deals with this on a day-to-day basis, in his dealings with various representative sports bodies and in the way he constructs funding arrangements, is resolutely focused on increasing participation in sports across all backgrounds in this country, both ethnic and social; there are other metrics and dimensions besides just ethnicity. That is an important piece of work that he is taking forward. On representation on boards, that is exactly the kind of question Cindy Butts’s review will be addressing. I hope she is listening to today’s proceedings and will take that as an idea for her review to carry forward, because I agree with the hon. Gentleman that there were catastrophic failings of governance over many years at Yorkshire county cricket club. That is why it is right that the chairman resigned and if anyone is left from that regime, they should resign as well.

[Rachel Hopkins (Luton South) (Lab)]

In my constituency, children are flourishing when playing local, grassroots, community cricket, through excellent programmes led by organisations such as Wicketz, which focuses on community cohesion. It is clear, however, that structural inequalities, particularly associated with race and class—as have been writ large by the issues and allegations at Yorkshire county cricket club—will place huge barriers in their way if they want to pursue their dreams and make it as professionals in cricket. What actions is the Minister taking to stamp out discrimination, in all its forms, within cricket and sport in the UK?

[Chris Philp]

As I set out already, the independent commission for equity in cricket, chaired by a highly respected anti-racism campaigner, is going into exactly those issues and I am sure it will be making concrete recommendations, which the ECB and the Government will be taking very seriously. In addition, the Equality and Human Rights Commission is asking questions, as I have said. If the ECB, in its work, does not do what this House expects, the Government are prepared to act.

[Clive Efford (Eltham) (Lab)]

More than 50 years ago, Asian cricketers set up their own leagues and tournaments in Yorkshire because they were not getting the recognition in the sport that they deserved for their talent, and they certainly were not being picked up by the head of the sport in their county, which is Yorkshire cricket club. This problem has existed in broad daylight for generations and the ECB has done precious little to deal with it. If we are going to deal with this issue, we cannot look only at Yorkshire cricket club; we need to look beyond it and talk to people about what has been going on in Yorkshire for a very long time—perhaps even look beyond Yorkshire and at other areas where this sort of institutional racism takes place. We need a root-and-branch investigation into what has been going on.

[Chris Philp]

The hon. Gentleman is absolutely correct, and that is precisely what the Independent Commission for Equity in Cricket, chaired by Cindy Butts, is going to be doing. It will be asking exactly those questions that he just posed, not just of Yorkshire county cricket club, which clearly has the most appalling, very long-standing problems—from what he said, it sounds as though they are multi-decade—but across cricket more widely. It is essential that that work happens. Let me just take this opportunity to say to anyone in cricket—Members of Parliament, members of the public, players, coaching staff or parents—who has experienced the kind of appalling and unacceptable racism we have heard about to make sure that they give evidence to this independent commission, so that their voice is heard, their story is heard and action can be taken.

[Jim Shannon (Strangford) (DUP)]

I, too, thank the Minister for his helpful response. Does he agree that the sport of cricket embodies the very sense of multiculturalism and that those who are caught in racist-speak or in racist acts should not have the privilege to don the whites or even to watch the wonderful play? What steps can and will he take not just to reduce racism but to implement a zero tolerance policy on it?

[Chris Philp]

I agree with the hon. Gentleman that where players are found to have committed acts of racism, they should suffer consequences; a mere slap on the wrist or admonishment is clearly not enough. In that spirit, I understand that the ECB has already suspended from eligibility for England selection one of the players at Yorkshire county cricket club who was guilty of racially abusing Azeem Rafiq. I hope that county cricket clubs, the ECB, cricket clubs more generally and sporting clubs more generally take exactly that kind of action whenever they find examples of this kind of unacceptable behaviour. Let us say as a House today that that is what we expect them to do.

[Jo Stevens (Cardiff Central) (Lab)]

On a point of order, Mr Deputy Speaker. May I ask your advice, as I believe the Minister has just inadvertently misled the House on two occasions in his responses to questions? In July, the Prime Minister accepted Labour’s request to extend football banning orders to online racist abuse. I raised the fact that nothing had been done about that in oral questions to the new Secretary of State for Digital, Culture, Media and Sport on 16 September. She was not able to answer the question and said that she would write to me. She has actually done so today, some two months on, saying, in effect, that nothing has been done yet because it will require primary legislation to extend football banning orders. So these orders are clearly not in force and action has not been taken. I wonder whether you might advise me as to how the record could be corrected.

--- Later in debate ---

[Chris Philp]

Further to that point of order, Mr Deputy Speaker. I thank the shadow Secretary of State for her point of order. As I said at the beginning, I am covering today’s debate for the sports Minister, and the hon. Lady is quite right to say that it is a commitment—a clear and affirmed one. The Department is currently working on ways to implement it as quickly as possible. I will make sure that my colleagues the sports Minister and the Secretary of State deliver this commitment as expeditiously as they possibly can.

[Mr Deputy Speaker (Mr Nigel Evans)]

Well, that was speedily done, was it not? Thank you very much, Minister, for responding to the urgent question today. May I ask Members who are leaving to do so in a covid-friendly way? Appropriately enough, we are moving on to a statement by the Secretary of State for Health and Social Care on the covid-19 update.

Horse Racing

Chris Philp Excerpts

Thursday 23rd September 2021 Commons Chamber

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

I thank the hon. Members who have joined this evening’s Adjournment debate.

I thank my right hon. Friend the Member for West Suffolk (Matt Hancock) for securing and initiating this debate and, indeed, for advocating on behalf of his local industry with such passion and evident tenacity, which I look forward to experiencing again. I am informed by the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), that not only is he willing to accept that invitation to Newmarket but he has already scheduled a trip to Newmarket next week, when he will be meeting members of the horse racing fraternity and, I hope, my right hon. Friend the Member for West Suffolk. Diary permitting, I would be delighted to follow in his footsteps at a later time.

My right hon. Friend is right to highlight the vital contribution of racing to the economy not just in his constituency, where Newmarket and its supporting infrastructure is such a significant employer, but throughout the United Kingdom. As he rightly says, horse racing is the second largest sport in the UK by attendance, employment and annual revenue. According to its governing body, the British Horseracing Authority, racing is worth over £4 billion per annum to the economy in direct, indirect and associated expenditure, much of which is focused on rural areas.

More than 20,000 people are directly employed across 59 licensed racecourses, hundreds of training yards and thousands of breeding operations. As my right hon. Friend said, tens of thousands of additional jobs are supported in the wider rural economy through the supply chain and all the sectors he outlined during his excellent speech. I also agree entirely with the points he made about horse racing’s contribution to the UK’s soft power. Clearly, people from around the world come to the UK to participate and watch our fantastic horse racing meets, and to invest here in stud farms and horse racing yards directly as well. So racing significantly adds to the UK’s international prestige and our global leadership in this industry is something we should cherish and certainly be preserving.

The horse-race betting levy, the topic of my right hon. Friend’s speech, was of course introduced more than 50 years ago, in the 1960s, when the betting industry was somewhat deregulated and placing bets away from racecourses was permitted. At the time, there were fears that people would leave the racecourses and bet on the high street, and the levy was introduced to try to mitigate that risk. Thankfully, over those past 50 or 60 years racing has proved enduringly popular, despite the concerns articulated back in the 1960s. Nothing better illustrates its enduring popularity than the vibrancy of its recovery as we have returned to normal after covid and restrictions on flagship meetings were removed. I understand that attendance at the recent Qatar Goodwood festival this year was close to the figures in 2019, which is fantastic news. Racing was the first sport to return, behind closed doors, after the first national lockdown—I wonder whether my right hon. Friend’s hand may have been behind that move, in some way, in June last year. I am pleased that horse racing has continued without interruption since then. The fact that it has been able to return so swiftly is thanks in no small part to the British Horseracing Authority to incorporate covid measures into the already meticulous protocols.

[John Spellar]

I congratulate the Minister on his appointment. He referred to the outdated view that the interests of bookmakers on the high street, regulated and onshore, were somehow in conflict with those of the racecourses. Should we not, as the right hon. Member for West Suffolk indicated, actually see them in a symbiotic relationship, as part of the same ecosystem, supporting each other?

[Chris Philp]

I was referring to the fears articulated during the 1960s, which of course have subsequently proven not to have come to pass, as the right hon. Gentleman has just said. The horse racing levy is a direct expression of the symbiosis that he refers to: the support that that two industries give one another. The one would certainly be weaker without the other, so I entirely agree with what he just said.

I also wish to reflect on the support that has been provided to racing during the pandemic, which my right hon. Friend referred to. Of course, horse racing has benefited from the economy-wide support that all businesses have received—the rates relief and the support on jobs, through things such as the furlough scheme, which have been provided by the taxpayer. In addition, the horse racing industry, by way of the Horserace Betting Levy Board and The Racing Foundation has also received £28 million in terms of cash flow and hardship support, and £20 million of levy funds were aimed at supporting racecourses, with £8 million from the foundation supporting individuals in the sector. So the sector has received substantial support not only generally, but specifically. Since then, the HBLB has agreed to make additional contributions to prize money until the end of December, which will help to mitigate the lower amounts made available by courses due to covid—this partly addresses the concern that my right hon. Friend raised a little earlier.

As my right hon. Friend said, racecourses are also accessing support through the sports survival package, organised by the sport Minister, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire, where a £21.5 million loan has been made to the HBLB to enable it to provide extra. The HBLB has earmarked £15 million of that to be distributed via prize money this year, 2021, keeping a further £6.5 million in reserve for 2022. Of course, it has not been a one-way street, because horse racing has given back. It has donated £2.6 million to NHS charities from betting on the grand national, and a great deal of voluntary work has been done as well. I pay tribute to the horse racing industry’s contribution to our country during this time of crisis.

Given that time is pressing, let me address directly some of the requests my right hon. Friend made in his excellent speech. On a review of the horserace betting levy, it was of course reviewed relatively recently in 2017, when my right hon. Friend was a Minister in the Department, albeit not directly responsible for this policy area. In that review, the Government fixed the levy at 10% of bookmakers’ gross profits, to avoid annual negotiations, and based the levy on gross gambling yield—in effect, the gross profit—rather than turnover, so that there was a certain amount of risk-sharing between the gambling industry and the horse racing industry. One could conceive of circumstances in which, for some reason—unexpected events—the gambling yield might go down. That would clearly affect both parts of the sector, which are symbiotic, rather than falling wholly on the shoulders of the gambling industry, which is why the levy was originally constructed in that way.

A review is due to take place in three years’ time, in 2024. I am of course willing to listen to detailed representations if there is a case for looking at it again sooner. I think that the measures that I have set out addressed the issues in respect of covid, but if there are particular reasons why a review ought to be considered sooner, I would be happy to look at detailed representations from either my right hon. Friend or the industry, and I would consider them carefully. Having been appointed only a week ago, almost to the hour, I do not want to race to make any commitments in this policy area, but I will of course listen carefully.

[Mr Laurence Robertson]

I welcome the Minister to his new role. On the wider gambling review, will he confirm that it will remain the Government’s policy to ensure that it is evidence-based and evidence-led?

--- Later in debate ---

[Chris Philp]

I like to think that all the Government’s policy making is evidence-led and evidence-based. The review will be conducted in a thoughtful way, with full engagement and consultation with Members who have an interest, some of whom I see in the Chamber, as well as with the industry and other stakeholders.

It is worth saying that the 2017 reforms exceeded expectations and doubled the amount of levy collected, up to £95 million in 2018. Even during the difficult year we had last year—the year running to March 2021—the levy still collected £80 million, which was substantially in excess of the amount collected before the reforms. The levy has not only exceeded expectations but proved remarkably resilient even during the difficult circumstances of the past year.

My right hon. Friend raised an interesting question about international horse racing. It is worth recalling that the original rationale for the construction of the levy as it is dates back to those 1960s concerns, which it turns out were largely unfounded, that high street betting would in some way detract from on-course betting. The levy was therefore constructed in relation to UK-based horse racing because people were worried about horse racing on UK courses. There is, then, a rationale for why the levy has developed in the way it has. To make the change my right hon. Friend proposed would be outside the originally constructed purpose. We are, though, always willing—and as a new Minister, I am particularly willing—to listen and to consider new evidence as it arises. I would be happy to study any detailed submissions that make the case advanced by my right hon. Friend and give them careful consideration, because this is a Government who listen and who consider evidence, as alluded to by my hon. Friend the Member for Tewkesbury (Mr Robertson) a few moments ago.

I can see that the hour of the final Adjournment prior to the conference recess is almost upon us, so let me conclude by saying how strongly this Government support the horse racing industry and everything that it does: the jobs that it creates; and the addition that it makes to our national prestige. We will always engage constructively and in detail on topics such as this in a way that it is not really possible to do in a half-hour debate, but there is a lot of detail that I am sure we can discuss later. It serves our national interests and the interests of all our constituents to have a vibrant and successful horse racing industry. My colleagues and I look forward to working with Members across the House to ensure that that remains case for many, many decades to come.

Question put and agreed to.

Gambling Regulation

Chris Philp Excerpts

Wednesday 22nd September 2021 Written Statements

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

On 7 June the Government announced that Malcolm Sheehan QC had been appointed to lead an independent review into the regulation of the Football Index gambling product and its operator, BetIndex Ltd. The terms of reference set out that the review was to provide an expert account of the actions taken by the Gambling Commission and other regulatory bodies throughout the period in which BetIndex held a gambling licence, provide recommendations as needed, and to inform the Government’s ongoing review of the 2005 Gambling Act. The independent review has now concluded, and the report has today been published on gov.uk.

I am grateful to Mr Sheehan and his team for their extensive investigation, thorough report and clear recommendations. I am also grateful to the Gambling Commission, Financial Conduct Authority and others for their co-operation with the review and their provision of evidence to support Mr Sheehan’s deliberations.

This independent expert report has been completed in such a way as to avoid prejudicing a number of ongoing processes and investigations into BetIndex Ltd. First, administration proceedings are continuing, looking at the assets and liabilities of the firm and what is owed to customers. It is likely that this process will result in some amounts being reimbursed to creditors. Secondly, the Gambling Commission is completing its separate regulatory investigation into BetIndex on which it will report in due course. Thirdly, the Gambling Commission has referred the company to the Insolvency Service to ask that it consider whether the actions of the directors prior to administration breached insolvency or fraud laws. Any comment on this matter needs to carefully avoid prejudicing any future legal proceedings.

Football Index was a novel and boundary-pushing product, and its business was materially impacted by covid-19 and the suspension of football. While the independent review focused on the actions of regulatory bodies, it did find that BetIndex did not properly notify the Gambling Commission of the nature of the product in its licence application, nor did it inform the regulator of changes to the product after launch as it was required to. This made scrutiny harder.

Nonetheless, the report identifies areas where the Gambling Commission could have been more effective in responding to the challenges raised by the novel product from its licensing to eventual collapse, including in early scrutiny, speed of decision making and action, and escalation of issues when barriers arose. By 2019 it was aware of concerns about the product and launched an investigation, but by that time Football Index had grown to such an extent that large amounts of customer money were already involved. The report helps us understand why certain decisions were made at the time and what we can learn from that.

While BetIndex Ltd was never regulated by the Financial Conduct Authority, the report also looked at its role in working with the commission, identifying some areas of improvement including in speed of response to requests from the commission and consistency of messaging on regulatory responsibilities.

It is now essential that we learn the lessons from this case and ensure a similar situation does not happen again. I am pleased that the Gambling Commission is carrying out an action plan to address the issues identified. In the weeks since the draft report was shared the commission has:

Updated the frameworks for risk based regulation so that product novelty is properly considered alongside other factors in determining the level of scrutiny an operator is placed under.

Committed to consulting on tighter rules for the terminology used to describe gambling products, putting beyond doubt that gambling must be clearly described as gambling and not an investment.

Commenced a review of all remote licensees to check for issues relating to boundary pushing products.

Agreed to provide formal advice to the Government on the issue of protecting customer funds as part of the Gambling Act review. This is in addition to their current business plan’s commitment to review the existing three-tiered approach.

The commission and the FCA have also worked together to strengthen their memorandum of understanding in response to Mr Sheehan’s recommendations, including with new escalation routes and commitments on timeliness of responses to ensure regulatory impasses cannot remain unsolved. The FCA has additionally:

Nominated an Executive Director to oversee the relationship with the commission.

Continued to pursue the programme of change as set out in its July Business Plan.

The report has also raised some important questions for the Government’s ongoing review of the Gambling Act 2005 which is already taking a comprehensive and evidence-led look at gambling in this country, including a close examination of the Gambling Commission’s powers and resources. The Gambling Commission is not required to monitor the financial viability of companies on an ongoing basis. However, our Act review will consider whether the commission should require gambling companies to do more to demonstrate their ability to cover liabilities arising from long-term bets, especially if they make up a large proportion of their business. The gambling White Paper which we will publish in due course will answer this question and set out the Government vision for the sector.

A copy of Mr Sheehan’s final report will be placed in the Libraries of both Houses.

[HCWS301]