Birmingham Commonwealth Games Bill [Lords]

(Limited Text - Ministerial Extracts only)

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

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

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

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

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

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

[Liam Byrne]

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

[Nigel Huddleston]

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

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

[Alison McGovern]

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

[Nigel Huddleston]

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

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

[Liam Byrne]

Will the Minister give way?

[Nigel Huddleston]

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

[Liam Byrne]

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

[Nigel Huddleston]

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

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

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

[Alison McGovern]

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

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

Clause, by leave, withdrawn.

New Clause 2

Local Commonwealth Games levy

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

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

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

Brought up, and read the First time.

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[Liam Byrne]

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

[Nigel Huddleston]

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

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

[Alison McGovern]

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

[Nigel Huddleston]

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

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

[Liam Byrne]

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

[Nigel Huddleston]

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

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

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

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

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

[Nigel Huddleston]

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

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

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

[Alison McGovern]

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

Clause, by leave, withdrawn.

Third Reading

[Nigel Huddleston]

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

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

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

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

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

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

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

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

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

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

[Saqib Bhatti]

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

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[Nigel Huddleston]

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

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

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

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