Trade (Mobile Roaming) Regulations 2023

Lord Parkinson of Whitley Bay Excerpts

Wednesday 1st February 2023 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the draft Regulations laid before the House on 15 December 2022 be approved.

Relevant document: 25th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 31 January.

Motion agreed.

Online Safety Bill

Lord Parkinson of Whitley Bay Excerpts

2nd reading
Wednesday 1st February 2023 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am very glad to be here to move the Second Reading of the Online Safety Bill. I know that this is a moment which has been long awaited in your Lordships’ House and noble Lords from across the House share the Government’s determination to make the online realm safer.

That is what this Bill seeks to do. As it stands, over three quarters of adults in this country express a concern about going online; similarly, the number of parents who feel the benefits outweigh the risks of their children being online has decreased rather than increased in recent years, falling from two-thirds in 2015 to barely over half in 2019. This is a terrible indictment of a means through which people of all ages are living increasing proportions of their lives, and it must change.

All of us have heard the horrific stories of children who have been exposed to dangerous and deeply harmful content online, and the tragic consequences of such experiences both for them and their families. I am very grateful to the noble Baroness, Lady Kidron, who arranged for a number of noble Lords, including me, to see some of the material which was pushed relentlessly at Molly Russell whose family have campaigned bravely and tirelessly to ensure that what happened to their daughter cannot happen to other young people. It is with that in mind, at the very outset of our scrutiny of this Bill, that I would like to express my gratitude to all those families who continue to fight for change and a safer, healthier online realm. Their work has been central to the development of this Bill. I am confident that, through it, the Government’s manifesto commitment to make the UK the safest place in the world to be online will be delivered.

This legislation establishes a regulatory regime which has safety at its heart. It is intended to change the mindset of technology companies so that they are forced to consider safety and risk mitigation when they begin to design their products, rather than as an afterthought.

All companies in scope will be required to tackle criminal content and activity online. If it is illegal offline; it is illegal online. All in-scope platforms and search services will need to consider in risk assessments the likelihood of illegal content or activity taking place on their site and put in place proportionate systems and processes to mitigate those risks. Companies will also have to take proactive measures against priority offences. This means platforms will be required to take proportionate steps to prevent people from encountering such content.

Not only that, but platforms will also need to mitigate the risk of the platform being used to facilitate or commit such an offence. Priority offences include, inter alia: terrorist material, child sexual abuse and exploitation, so-called revenge pornography and material encouraging or assisting suicide. In practice, this means that all in-scope platforms will have to remove this material quickly and will not be allowed to promote it in their algorithms.

Furthermore, for non-priority illegal content, platforms must have effective systems in place for its swift removal once this content has been flagged to them. Gone will be the days of lengthy and arduous complaints processes and platforms feigning ignorance of such content. They can and will be held to account.

As I have previously mentioned, the safety of children is of paramount importance in this Bill. While all users will be protected from illegal material, some types of legal content and activity are not suitable for children and can have a deeply damaging impact on their mental health and their developing sense of the world around them.

All in-scope services which are likely to be accessed by children will therefore be required to assess the risks to children on their service and put in place safety measures to protect child users from harmful and age inappropriate content. This includes content such as that promoting suicide, self-harm or eating disorders which does not meet a criminal threshold; pornography; and damaging behaviour such as bullying.

The Bill will require providers specifically to consider a number of risk factors as part of their risk assessments. These factors include how functionalities such as algorithms could affect children’s exposure to content harmful to children on their service, as well as children’s use of higher risk features on the service such as livestreaming or private messaging. Providers will need to take robust steps to mitigate and effectively manage any risks identified.

Companies will need to use measures such as age verification to prevent children from accessing content which poses the highest risk of harm to them, such as online pornography. Ofcom will be able to set out its expectations about the use of age assurance solutions, including age verification tools, through guidance. This guidance will also be able to refer to relevant standards. The Bill also now makes it clear that providers may need to use age assurance to identify the age of their users to meet the necessary child safety duties and effectively enforce age restrictions on their service.

The Government will set out in secondary legislation the priority categories of content harmful to children so that all companies are clear on what they need to protect children from. Our intention is to have the regime in place as soon as possible after Royal Assent, while ensuring the necessary preparations are completed effectively and service providers understand clearly what is expected. We are working closely with Ofcom and I will keep noble Lords appraised.

My ministerial colleagues in another place worked hard to strengthen these provisions and made commitments to introduce further provisions in your Lordships’ House. With regard to increased protections for children specifically, the Government will bring forward amendments at Committee stage to name the Children’s Commissioner for England as a statutory consultee for Ofcom when it is preparing a code of practice, ensuring that the experience of children and young people is accounted for during implementation.

We will also bring forward amendments to specify that category 1 companies—the largest and most risky platforms—will be required to publish a summary of their risk assessments for both illegal content and material that is harmful to children. This will increase transparency about illegal and harmful content on in-scope services and ensure that Ofcom can do its job regulating effectively.

We recognise the great suffering experienced by many families linked to children’s exposure to harmful content and the importance of this Bill in ending that. We must learn from the horrific events from the past to secure a safe future for children online.

We also understand that, unfortunately, people of any age may experience online abuse. For many adults, the internet is a positive source of entertainment and information and a way to connect with others; for some, however, it can be an arena for awful abuse. The Bill will therefore offer adult users a triple shield of protection when online, striking the right balance between protecting the right of adult users to access legal content freely, and empowering adults with the information and tools to manage their own online experience.

First, as I have outlined, all social media firms and search services will need to tackle illegal content and activity on their sites. Secondly, the Bill will require category 1 services to set clear terms of service regarding the user-generated content they prohibit and/or restrict access to, and to enforce those terms of service effectively. All the major social media platforms such as Meta, Twitter and TikTok say that they ban abuse and harassment online. They all say they ban the promotion of violence and violent threats, yet this content is still easily visible on those sites. People sign up to these platforms expecting one environment, and are presented with something completely different. This must stop.

As well as ensuring the platforms have proper systems to remove banned content, the Bill will also put an end to services arbitrarily removing legal content. The largest platform category 1 services must ensure that they remove or restrict access to content or ban or suspend users only where that is expressly allowed in their terms of service, or where they otherwise have a legal obligation to do so.

This Bill will make sure that adults have the information they need to make informed decisions about the sites they visit, and that platforms are held to their promises to users. Ofcom will have the power to hold platforms to their terms of service, creating a safer and more transparent environment for all.

Thirdly, category 1 services will have a duty to provide adults with tools they can use to reduce the likelihood that they encounter certain categories of content, if they so choose, or to alert them to the nature of that content. This includes content which encourages, promotes, or provides instructions for suicide, self-harm or eating disorders. People will also have the ability to filter out content from unverified users if they so wish. This Bill will mean that adult users will be empowered to make more informed choices about what services they use, and to have greater control over whom and what they engage with online.

It is impossible to speak about the aspects of the Bill which protect adults without, of course, mentioning freedom of expression. The Bill needs to strike a careful balance between protecting users online, while maintaining adults’ ability to have robust—even uncomfortable or unpleasant—conversations within the law if they so choose. Freedom of expression within the law is fundamental to our democracy, and it would not be right for the Government to interfere with what legal speech is permitted on private platforms. Instead, we have developed an approach based on choice and transparency for adult users, bounded by major platforms’ clear commercial incentives to provide a positive experience for their users.

Of course, we cannot have robust debate without being accurately informed of the current global and national landscape. That is why the Bill includes particular protections for recognised news publishers, content of democratic importance, and journalistic content. We have been clear that sanctioned news outlets such as RT, formerly Russia Today, must not benefit from these protections. We will therefore bring forward an amendment in your Lordships’ House explicitly to exclude entities subject to sanctions from the definition of a recognised news publisher.

Alongside the safety duties for children and the empowerment tools for adults, platforms must also have effective reporting and redress mechanisms in place. They will need to provide accessible and effective mechanisms for users to report content which is illegal or harmful, or where it breaches terms and conditions. Users will need to be given access to effective mechanisms to complain if content is removed without good reason.

The Bill will place a duty on platforms to ensure that those reporting mechanisms are backed up by timely and appropriate redress mechanisms. Currently, internet users often do not bother to report harmful content they encounter online, because they do not feel that their reports will be followed up. That too must change. If content has been unfairly removed, it should be reinstated. If content should not have been on the site in question, it should be taken down. If a complaint is not upheld, the reasons should be made clear to the person who made the report.

There have been calls—including from the noble Lord, Lord Stevenson of Balmacara, with whom I look forward to working constructively, as we have done heretofore—to use the Bill to create an online safety ombudsman. We will listen to all suggestions put forward to improve the Bill and the regime it ushers in with an open mind, but as he knows from our discussions, of this suggestion we are presently unconvinced. Ombudsman services in other sectors are expensive, often underused and primarily relate to complaints which result in financial compensation. We find it difficult to envisage how an ombudsman service could function in this area, where user complaints are likely to be complex and, in many cases, do not have the impetus of financial compensation behind them. Instead, the Bill ensures that, where providers’ user-reporting and redress mechanisms are not sufficient, Ofcom will have the power to take enforcement action and require the provider to improve its user-redress provisions to meet the standard required of them. I look forward to probing elements of the Bill such as this in Committee.

This regulatory framework could not be effective if Ofcom, as the independent regulator, did not have a robust suite of powers to take enforcement actions against companies which do not comply with their new duties, and if it failed to take the appropriate steps to protect people from harm. I believe the chairman of Ofcom, the noble Lord, Lord Grade of Yarmouth, is in his place. I am glad that he has been and will be following our debates on this important matter.

Through the Bill, Ofcom will have wide-ranging information-gathering powers to request any information from companies which is relevant to its safety functions. Where necessary, it will be able to ask a suitably skilled person to undertake a report on a company’s activity—for example, on its use of algorithms. If Ofcom decides to take enforcement action, it can require companies to take specific steps to come back into compliance.

Ofcom will also have the power to impose substantial fines of up to £18 million, or 10% of annual qualifying worldwide revenue, whichever is higher. For the biggest technology companies, this could easily amount to billions of pounds. These are significant measures, and we have heard directly from companies that are already changing their safety procedures to ensure they comply with these regulations.

If fines are not sufficient, or not deemed appropriate because of the severity of the breach, Ofcom will be able to apply for a court order allowing it to undertake business disruption measures. This could be blocking access to a website or preventing it making money via payment or advertising services. Of course, Ofcom will be able to take enforcement action against any company that provides services to people in the UK, wherever that company is located. This is important, given the global nature of the internet.

As the Bill stands, individual senior managers can be held criminally liable and face a fine for failing to ensure their platform complies with Ofcom’s information notice. Further, individual senior managers can face jail, a fine or both for failing to prevent the platform committing the offences of providing false information, encrypting information or destroying information in response to an information notice.

The Government have also listened to and acknowledged the need for senior managers to be made personally liable for a wider range of failures of compliance. We have therefore committed to tabling an amendment in your Lordships’ House which will be carefully designed to capture instances where senior managers have consented to or connived in ignoring enforceable requirements, risking serious harm to children. We are carefully designing this amendment to ensure that it can hold senior managers to account for their actions regarding the safety of children, without jeopardising the UK’s attractiveness as a place for technology companies to invest in and grow. We intend to base our offence on similar legislation recently passed in the Republic of Ireland, as well as looking carefully at relevant precedent in other sectors in the United Kingdom.

I have discussed the safety of children, adults, and everyone’s right to free speech. It is not possible to talk about this Bill without also discussing its protections for women and girls, who we know are disproportionately affected by online abuse. As I mentioned, all services in scope will need to seek out and remove priority illegal content proactively. There are a number of offences which disproportionately affect women and girls, such as revenge pornography and cyberstalking, which the Bill requires companies to tackle as a priority.

To strengthen protections for women in particular, we will be listing controlling or coercive behaviour as a priority offence. Companies will have to take proactive measures to tackle this type of illegal content. We will also bring forward an amendment to name the Victims’ Commissioner and the domestic abuse commissioner as statutory consultees for the codes of practice. This means there will be a requirement for Ofcom to consult both commissioners ahead of drafting and amending the codes of practice, ensuring that victims, particularly victims and survivors of domestic abuse, are better protected. The Secretary of State and our colleagues have been clear that women’s and girls’ voices must be heard clearly in developing this legislation.

I also want to take this opportunity to acknowledge the concerns voiced over the powers for the Secretary of State regarding direction in relation to codes of practice that currently appear in the Bill. That is a matter on which my honourable friend Paul Scully and I were pressed by your Lordships’ Communications and Digital Committee when we appeared before it last week. As we explained then, we remain committed to ensuring that Ofcom maintains its regulatory independence, which is vital to the success of this framework. As we are introducing ground-breaking regulation, our aim is to balance the need for the regulator’s independence with appropriate oversight by Parliament and the elected Government.

We intend to bring forward two changes to the existing power: first, replacing the “public policy” wording with a defined list of reasons that a direction can be made; and secondly, making it clear that this element of the power can only be used in exceptional circumstances. I would like to reassure noble Lords—as I sought to reassure the Select Committee—that the framework ensures that Parliament will always have the final say on codes of practice, and that strong safeguards are in place to ensure that the use of this power is transparent and proportionate.

Before we begin our scrutiny in earnest, it is also necessary to recognise that this Bill is not just establishing a regulatory framework. It also updates the criminal law concerning communication offences. I want to thank the Law Commission for its important work in helping to strengthen criminal law for victims. The inclusion of the new offences for false and threatening communications offers further necessary protections for those who need it most. In addition, the Bill includes new offences to criminalise cyberflashing and epilepsy trolling. We firmly believe that these new offences will make a substantive difference to the victims of such behaviour. The Government have also committed to adding an additional offence to address the encouragement or assistance of self-harm communications and offences addressing intimate image abuse online, including deep- fake pornography. Once these offences are introduced, all companies will need to treat this content as illegal under the framework and take action to prevent users from encountering it. These new offences will apply in respect of all victims of such activity, children as well as adults.

This Bill has been years in the making. I am proud to be standing here today as the debate begins in your Lordships’ House. I realise that noble Lords have been waiting long and patiently for this moment, but I know that they also appreciate that considerable work has already been done to ensure that this Bill is proportionate and fair, and that it provides the change that is needed.

A key part of that work was conducted by the Joint Committee, which conducted pre-legislative scrutiny of the Bill, drawing on expertise from across both Houses of Parliament, from all parties and none. I am very glad that all the Members of your Lordships’ House who served on that committee are speaking in today’s debate: the noble Baroness, Lady Kidron; the noble Lords, Lord Stevenson of Balmacara and Lord Knight of Weymouth, who have very helpfully been called to service on the Opposition Front Bench; the noble Lord, Lord Clement-Jones, who speaks for the Liberal Democrats; as well as my noble friends Lord Black of Brentwood and Lord Gilbert of Panteg.

While I look forward to the contributions of all Members of your Lordships’ House, and will continue the open-minded, collaborative approach established by my right honourable friend the Secretary of State and her predecessors—listening to all ideas which are advanced to make this Bill as effective as it can be—I urge noble Lords who are not yet so well-versed in its many clauses and provisions, or who might be disinclined to accept at first utterance the points I make from this Dispatch Box, to consult those noble Lords before bringing forward their amendments in later stages of the Bill. I say that not to discourage noble Lords from doing so, but in the spirit of ensuring that what they do bring forward, and our deliberations on them, will be pithy, focused, and conducive to making this Bill law as swiftly as possible. In that spirit, I shall draw my already too lengthy remarks to a close. I beg to move.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the very many noble Lords who have spoken this afternoon and this evening. They have spoken with passion—we heard that in the voices of so many—about their own experiences, the experiences of their families and the experiences of far too many of our fellow subjects, who have harrowing examples of the need for this Bill. But noble Lords have also spoken with cool-headed precision and forensic care about the aspects of the Bill that demand our careful scrutiny. Both hearts and heads are needed to make this Bill worth the wait.

I am very grateful for the strong consensus that has come through in noble Lords’ speeches on the need to make this Bill law and to do so quickly, and therefore to do our work of scrutiny diligently and speedily. I am grateful for the very generous and public-spirited offer the noble Lord, Lord Stevenson, has just issued. I, too, would like to make this not a party-political matter; it is not and has not been in the speeches we have heard today. The work of your Lordships’ House is to consider these matters in detail and without party politics intruding, and it would be very good if we could proceed on the basis of collaboration, co-operation and, on occasion, compromise.

In that spirit, I should say at the outset that I share the challenge faced by the noble Lords, Lord Clement-Jones and Lord Stevenson. Given that so many speakers have chosen to contribute, I will not be able to cover or acknowledge everyone who has spoken. I shall undoubtedly have to write on many of the issues to provide the technical detail that the matters they have raised deserve. It is my intention to write to noble Lords and invite them to join a series of meetings to look in depth at some of the themes and areas between now and Committee, so that as a group we can have well-informed discussions in Committee. I shall write with details suggesting some of those themes, and if noble Lords feel that I have missed any, or particular areas they would like to continue to talk about, please let me know and I will be happy to facilitate those.

I want to touch on a few of the issues raised today. I shall not repeat some of the points I made in my opening speech, given the hour. Many noble Lords raised the very troubling issue of children accessing pornography online, and I want to talk about that initially. The Government share the concerns raised about the lack of protections for children from this harmful and deeply unsuitable content. That is why the Bill introduces world-leading protections for children from online pornography. The Bill will cover all online sites offering pornography, including commercial pornography sites, social media, video-sharing platforms and fora, as well as search engines, which play a significant role in enabling children to access harmful and age-inappropriate content online. These companies will have to prevent children accessing pornography or face huge fines. To ensure that children are protected from this content, companies will need to put in place measures such as age verification, or demonstrate that the approach they are taking delivers the same level of protection for children.

While the Bill does not mandate that companies use specific technologies to comply with these new duties, in order to ensure that the Bill is properly future-proofed, we expect Ofcom to take a robust approach to sites which pose the highest risk of harm to children, including sites hosting online pornography. That may include directing the use of age verification technologies. Age verification is also referred to in the Bill. This is to make clear that these are measures that the Government expect to be used for complying with the duties under Part 3 and Part 5 to protect children from online pornography. Our intention is to have the regime operational as soon as possible after Royal Assent, while ensuring that the necessary preparations are completed effectively and that service providers understand what is expected of them. We are working very closely with Ofcom to ensure this.

The noble Lord, Lord Morrow, and others asked about putting age verification in the Bill more clearly, as was the case with the Digital Economy Act. The Online Safety Bill includes references to age assurance and age verification in the way I have just set out. That is to make clear that these are measures which the Government expect to be used for complying with the duties where proportionate to do so. While age assurance and age verification are referred to in the Bill, the Government do not mandate the use of specific approaches or technologies. That is similar to the approach taken in the Digital Economy Act, which did not mandate the use of a particular technology either.

I think my noble friend Lord Bethell prefers the definition of pornography in Part 3 of the Digital Economy Act. There is already a robust definition of “pornographic content” in this Bill which is more straightforward for providers and Ofcom to apply. That is important. The definition we have used is similar to the definition of pornographic content used in existing legislation such as the Coroners and Justice Act 2009. It is also in line with the approach being taken by Ofcom to regulate UK-established video-sharing platforms, meaning that the industry will already have familiarity with this definition and that Ofcom will already have experience in regulating content which meets this definition. That means it can take action more swiftly. However, I have heard the very large number of noble Lords who are inclined to support the work that my noble friend is doing in the amendments he has proposed. I am grateful for the time he has already dedicated to conversations with the Secretary of State and me on this and look forward to discussing it in more detail with him between now and Committee.

A number of noble Lords, including the noble Baronesses, Lady Finlay of Llandaff and Lady Kennedy of The Shaws, talked about algorithms. All platforms will need to undertake risk assessments for illegal content. Services likely to be accessed by children will need to undertake a children’s risk assessment to ensure they understand the risks associated with their services. That includes taking into account in particular the risk of algorithms used by their service. In addition, the Bill includes powers to ensure that Ofcom is able effectively to assess whether companies are fulfilling their regulatory requirements, including in relation to the operating of their algorithms. Ofcom will have the power to require information from companies about the operation of their algorithms and the power to investigate non-compliance as well as the power to interview employees. It will have the power to require regulated service providers to undergo a skilled persons report and to audit company systems and processes, including in relation to their algorithms.

The noble Baroness, Lady Kidron, rightly received many tributes for her years of work in relation to so many aspects of this Bill. She pressed me on bereaved parents’ access to data and, as she knows, it is a complex issue. I am very grateful to her for the time she has given to the meetings that the Secretary of State and I have had with her and with colleagues from the Ministry of Justice on this issue, which we continue to look at very carefully. We acknowledge the distress that some parents have indeed experienced in situations such as this and we will continue to work with her and the Ministry of Justice very carefully to assess this matter, mindful of its complexities which, of course, were something the Joint Committee grappled with as well.

The noble Baroness, Lady Featherstone, my noble friend Lady Wyld and others focused on the new cyberflashing offence and suggested that a consent-based approach would be preferable. The Law Commission looked at that in drawing up its proposals for action in this area. The Law Commission’s report raised concerns about the nature of consent in instant messaging conversations, particularly where there are misjudged attempts at humour or intimacy that could particularly affect young people. There is a risk, which we will want to explore in Committee, of overcriminalising young people. That is why the Government have brought forward proposals based on the Law Commission’s work. If noble Lords are finding it difficult to see the Law Commission’s reports, I am very happy to draw them to their attention so that they can benefit from the consultation and thought it conducted on this difficult issue.

The noble Baroness, Lady Gohir, talked about the impact on body image of edited images in advertising. Through its work on the online advertising programme, DCMS is considering how the Government should approach advertisements that contribute to body image concerns. A consultation on this programme closed in June 2022. We are currently analysing the responses to the consultation and developing policy. Where there is harmful user-generated content related to body image that risks having an adverse physical or psychological impact on children, the Online Safety Bill will require platforms to take action against that. Under the Bill’s existing risk assessment duties, regulated services are required to consider how media literacy can be used to mitigate harm for child users. That could include using content provenance technology, which can empower people to identify when content has been digitally altered in ways such as the noble Baroness mentioned.

A number of noble Lords focused on the changes made in relation to the so-called “legal but harmful” measures to ensure that adults have the tools they need to curate and control their experience online. In particular, noble Lords suggested that removing the requirement for companies to conduct risk assessments in relation to a list of priority content harmful to adults would reduce protections available for users. I do not agree with that assessment. The new duties will empower adult users to make informed choices about the services they use and to protect themselves on the largest platforms. The new duties will require the largest platforms to enforce all their terms of service regarding the moderation of user-generated content, not just the categories of content covered in a list in secondary legislation. The largest platforms already prohibit the most abusive and harmful content. Under the new duties, platforms will be required to keep their promises to users and take action to remove it.

There was rightly particular focus on vulnerable adult users. The noble Baronesses, Lady Hollins and Lady Campbell of Surbiton, and others spoke powerfully about that. The Bill will give vulnerable adult users, including people with disabilities, greater control over their online experience too. When using a category 1 service, they will be able to reduce their exposure to online abuse and hatred by having tools to limit the likelihood of their encountering such content or to alert them to the nature of it. They will also have greater control over content that promotes, encourages or provides instructions for suicide, self-harm and eating disorders. User reporting and redress provisions must be easy to access by all users, including people with a disability and adults with caring responsibilities who are providing assistance. Ofcom is of course subject to the public sector equality duty as well, so when performing its duties, including writing its codes of practice, it will need to take into account the ways in which people with protected characteristics, including people with disabilities, can be affected. I would be very happy to meet the noble Baronesses and others on this important matter.

The noble Lords, Lord Hastings of Scarisbrick and Lord Londesborough, and others talked about media literacy. The Government fully recognise the importance of that in achieving online safety. As well as ensuring that companies take action to keep users safe through this Bill, we are taking steps to educate and empower them to make safe and informed choices online. First, the Bill strengthens Ofcom’s existing media literacy functions. Media literacy is included in Ofcom’s new transparency reporting and information-gathering powers. In response to recommendations from the Joint Committee, the legislation also now specifies media literacy in the risk-assessment duties. In July 2021, DCMS published the online media literacy strategy, which sets out our ambition to improve national media literacy. We have committed to publishing annual action plans in each financial year until 2024-25, setting out our plans to deliver that. Furthermore, in December of that year, Ofcom published Ofcom’s Approach to Online Media Literacy, which includes an ambitious range of work focusing on media literacy.

Your Lordships’ House is, understandably, not generally enthusiastic about secondary legislation and secondary legislative powers, so I was grateful for the recognition by many tonight of the importance of providing for them in certain specific instances through this Bill. As the noble Lord, Lord Brooke of Alverthorpe, put it, there may be loopholes that Parliament wishes to close, and quickly. My noble friend Lord Inglewood spoke of the need for “living legislation”, and it is important to stress, as many have, that this Bill seeks to be technology-neutral—not specifying particular technological approaches that may quickly become obsolete—in order to cater for new threats and challenges as yet not envisaged. Some of those threats and challenges were alluded to in the powerful speech of my noble friend Lord Sarfraz. I know noble Lords will scrutinise those secondary powers carefully. I can tell my noble friend that the Bill does apply to companies that enable users to share content online or interact with each other, as well as to search services. That includes a broad range of services, including the metaverse. Where haptics enable user interaction, companies must take action. The Bill is also clear that content generated by bots is in scope where it interacts with user-generated content such as on Twitter, but not if the bot is controlled by or on behalf of the service, such as providing customer services for a particular site.

Given the range of secondary powers and the changing technological landscape, a number of noble Lords understandably focused on the need for post-legislative scrutiny. The Bill has undoubtedly benefited from pre-legislative scrutiny. As I said to my noble friend Lady Stowell of Beeston in her committee last week, we remain open-minded on the best way of doing that. We must ensure that once this regime is in force, it has the impact we all want it to have. Ongoing parliamentary scrutiny will be vital in ensuring that is the case. We do not intend to legislate for a new committee, not least because it is for Parliament itself to decide what committees it sets up. But I welcome further views on how we ensure that we have effective parliamentary scrutiny, and I look forward to discussing that in Committee. We have also made it very clear that the Secretary of State will undertake a review of the effectiveness of the regime between two and five years after it comes into force, producing a report that will then be laid in Parliament, thus providing a statutory opportunity for Parliament to scrutinise the effectiveness of the legislation.

My noble friend and other members of her committee followed up with a letter to me about the Secretary of State’s powers. I shall reply to that letter in detail and make that available to all noble Lords to see ahead of Committee. This is ground-breaking legislation, and we have to balance the need for regulatory independence with the appropriate oversight for Parliament and the Government. In particular, concerns were raised about the Secretary of State’s power of direction in Clause 39. Ofcom’s independence and expertise will be of utmost importance here, but the very broad nature of online harms means that there may be subjects that go beyond its expertise and remit as a regulator. That was echoed by Ofcom itself when giving evidence to the Joint Committee: it noted that there will clearly be some issues in respect of which the Government have access to expertise and information that the regulator does not, such as national security.

The framework in the Bill ensures that Parliament will always have the final say on codes of practice, and the use of the affirmative procedure will further ensure that there is an increased level of scrutiny in the exceptional cases where that element of the power is used. As I said, I know that we will look at that in detail in Committee.

My noble friend Lord Black of Brentwood, quoting Stanley Baldwin, talked about the protections for journalistic content. He and others are right that the free press is a cornerstone of British democracy; that is why the Bill has been designed to protect press and media freedom and why it includes robust provisions to ensure that people can continue to access diverse news sources online. Category 1 companies will have a new duty to safeguard all journalistic content shared on their platform, which includes citizen journalism. Platforms will need to put systems and processes in place to protect journalistic content, and they must enforce their terms of service consistently across all moderation and in relation to journalistic content. They will also need to put in place expedited appeals processes for producers of journalistic content.

The noble Baroness, Lady Anderson of Stoke-on-Trent, spoke powerfully about the appalling abuse and threats of violence she sustained in her democratic duties, and the noble Baroness, Lady Foster, spoke powerfully of the way in which that is putting off people, particularly women, from going into public life. The noble Baroness, Lady Anderson, asked about a specific issue: the automatic deletion of material and the implications for prosecution. We have been mindful of the scenario where malicious users post threatening content which they then delete themselves, and of the burden on services that retaining that information in bulk would cause. We have also been mindful of the imperative to ensure that illegal content cannot be shared and amplified online by being left there. The retention of data for law enforcement purposes is strictly regulated, particularly through the Investigatory Powers Act, which the noble Lord, Lord Anderson of Ipswich, is reviewing at the request of the Home Secretary. I suggest that the noble Baroness and I meet to speak about that in detail, mindful of that ongoing review and the need to bring people to justice.

The noble Baroness, Lady Chakrabarti, asked about sex for rent. Existing offences can be used to prosecute that practice, including Sections 52 and 53 of the Sexual Offences Act 2003, both of which are listed as priority offences in Schedule 7 to the Bill. As a result, all in-scope services must take proactive measures to prevent people being exposed to such content.

The noble Lord, Lord Davies of Brixton, and others talked about scams. The largest and most popular platforms and search engines—category 1 and category 2A services in the Bill—will have a duty to prevent paid-for fraudulent adverts appearing on their services, making it harder for fraudsters to advertise scams online. We know that that can be a particularly devastating crime. The online advertising programme builds on this duty in the Bill and will look at the role of the whole advertising system in relation to fraud, as well as the full gamut of other harms which are caused.

My noble friend Lady Fraser talked about the devolution aspects, which we will certainly look at. Internet services are a reserved matter for the UK Government. The list of priority offences in Schedule 7 can be updated only by the Secretary of State, subject to approval by this Parliament.

The right reverend Prelate the Bishop of Manchester asked about regulatory co-operation, and we recognise the importance of that. Ofcom has existing and strong relationships with other regulators, such as the ICO and the CMA, which has been supported and strengthened by the establishment of the Digital Regulation Cooperation Forum in 2020. We have used the Bill to strengthen Ofcom’s ability to work closely with, and to disclose information to, other regulatory bodies. Clause 104 ensures that Ofcom can do that, and the Bill also requires Ofcom to consult the Information Commissioner.

I do not want to go on at undue length—I am mindful of the fact that we will have detailed debates on all these issues and many more in Committee—but I wish to conclude by reiterating my thanks to all noble Lords, including the many who were not able to speak today but to whom I have already spoken outside the Chamber. They all continue to engage constructively with this legislation to ensure that it meets our shared objectives of protecting children and giving people a safe experience online. I look forward to working with noble Lords in that continued spirit.

My noble friend Lady Morgan of Cotes admitted to being one of the cavalcade of Secretaries of State who have worked on this Bill; I pay tribute to her work both in and out of office. I am pleased that my right honourable friend the Secretary of State was here to observe part of our debate today and, like all noble Lords, I am humbled that Ian Russell has been here to follow our debate in its entirety. The experience of his family and too many others must remain uppermost in our minds as we carry out our duty on the Bill before us; I know that it will be. We have an important task before us, and I look forward to getting to it.

Bill read a second time.

Online Safety Bill

Lord Parkinson of Whitley Bay Excerpts

Wednesday 1st February 2023 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the bill be committed to a Committee of the Whole House, and that it be an instruction to the Committee of the Whole House that they consider the bill in the following order:

Clauses 1 to 3, Schedules 1 and 2, Clauses 4 to 31, Schedule 3, Clauses 32 to 37, Schedule 4, Clauses 38 to 53, Schedules 5 to 7, Clauses 54 to 68, Schedule 8, Clauses 69 to 71, Schedule 9, Clauses 72 to 80, Schedule 10, Clauses 81 to 85, Schedule 11, Clauses 86 to 97, Schedule 12, Clauses 98 to 130, Schedule 13, Clauses 131 to 169, Schedule 14, Clauses 170 to 174, Schedule 15, Clauses 175 to 185, Schedule 16, Clauses 186 to 187, Schedule 17, Clauses 188 to 212, Title.

Motion agreed.

Broadband: Social Tariffs

Lord Parkinson of Whitley Bay Excerpts

Tuesday 31st January 2023 Lords Chamber

[Baroness Kennedy of Cradley]

To ask His Majesty’s Government what steps they are taking to ensure that eligible households are aware of the social broadband tariffs available to them.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, while there is a good availability of low-cost offers for broadband customers, low take-up remains an issue, partly due to the need for greater awareness. My department is working with a range of parties, including other government departments, jobcentres, libraries, local authorities, charities, consumer groups and internet service providers, to get the message to everyone eligible. The Government are also raising awareness through the UK-wide Help for Households campaign so that families up and down the country know how and where to find these offers.

[Baroness Kennedy of Cradley (Non-Afl)]

My Lords, millions and millions of people—up to 4 million on benefit—are spending more than they need to on their broadband, as the take-up of social tariffs is shockingly low. We need to do more. Digital inclusion matters: without it, we know that people are economically and socially disadvantaged. I take the point about awareness but is it not time for the Government to work with internet service providers to do two things? First, they should ensure an industry standard for all social tariffs for speed, terms and costs. Secondly, and most importantly, they should create an auto-enrolment scheme so that everybody who is entitled to a social tariff and a data voucher receives them.

[Lord Parkinson of Whitley Bay (Con)]

I am very grateful to the noble Baroness, whose Question is helping us to raise awareness for all those that need it. As I said, we are working with a number of groups and parties across the country to get the message out. She rightly underlines the importance of the internet to the way everybody leads their lives. One of the myths to bust is that the speed provided on a social tariff is inferior to other ones. Many providers offer very good services for people, and we are keen to get the message out, through our communications campaign and our work with the Department for Work and Pensions, on the other issues she mentions.

[Lord Kirkhope of Harrogate (Con)]

My Lords, the Minister is right in what he says, but while we all support the universal need for broadband, since 26 December last year, as he knows, planning regulations have been changed so that all new-build housing must have full-fibre broadband provision. Is he satisfied with that, and does he not think there are other ways in which we can encourage providers to provide full fibre for a much wider area of the country?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right to point to the changes that were made in the building regulations on Boxing Day. That, of course, sits alongside the work we have taken forward through two telecommunications infrastructure Acts to help ensure that connectivity reaches more households, particularly those in large blocks of flats. It accompanies our wider work to ensure that everyone has access to high-speed internet. As a result of that, 73% of UK premises can now access gigabit-capable broadband, a huge increase from just 6% this time four years ago.

[Lord Clement-Jones (LD)]

My Lords, lack of access to digital devices is a major cause of data poverty. What resources are the Government providing, and what steps are they taking, to make sure that public bodies such as GP practices and schools ensure that families in data poverty can access digital-only services? Do the Government even have a comprehensive digital exclusion policy?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

By its nature, this, of course, touches on the work of any government department. The Department for Education, through its digital entitlement programme, is equipping people with digital skills. DCMS encourages departments to consider, when making policy, the needs of people who might be digitally excluded. It is supporting that through, for instance, its work with the approximately 2,900 libraries nationwide to make sure that people can get online there if they need to.

[Lord Berkeley (Lab)]

My Lords, is the Minister aware that BT has said that by 2025, it is going to disconnect all wi-fi copper connections, and that the average cost for all consumers will be about £100 a month? How is anybody going to afford this?

[Lord Parkinson of Whitley Bay (Con)]

We are working with providers to make sure that faster broadband connection can be rolled out to people across the country and that those costs are not passed on to consumers. It is of course in providers’ interests to provide fast connections and products that people want to use.

[Baroness Finlay of Llandaff (CB)]

My Lords, given the pressure on hospital beds and the move to virtual wards, whereby patients are looked after at home and monitored through electronic devices, what are the Government doing to ensure the rapid installation of adequate broadband in homes with no connectivity, so that patients can be cared for in these virtual wards —which are being set up specifically because there are not enough beds in the NHS to take them?

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness touches on work about which it may be better for my colleagues in the Department of Health and Social Care to respond. We are working to ensure that everybody has connection to high-speed internet, and through social tariffs it is now available in 99% of the country.

[Baroness Altmann (Con)]

My Lords, many millions of people can neither afford to use internet broadband nor even own a smartphone, especially the elderly. Government figures suggest that more than 90% of people under 60 are digitally enabled, but approximately half of over-75s are not. Can my noble friend the Minister comment on the apparent age discrimination inherent in allowing the accessing of essential public services, banking, making parking payments and more to require ownership or use of an app or the internet? What is the Government’s strategy for remedying that digital exclusion?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right about the different impacts this has on people of different ages. While accessing services online provides clear benefits to people, I know that many companies are mindful of those who are not yet able to do so. As I have said, we are ensuring that everyone who wishes to do so has access to high-speed internet. Through social tariffs, they know that they can afford it, so if they wish to access those services online, they can.

[Lord Sikka (Lab)]

My Lords, the Government are handing £5 billion to BT for broadband provision. Under that deal, BT will keep the resulting assets and income streams for years and years to come. Can the Minister explain why, as part of that deal, the Government did not ask for free broadband for all poor and vulnerable households?

[Lord Parkinson of Whitley Bay (Con)]

As I have said, the industry is responding, with a number of operators providing low-cost social tariffs for people who want them. We think that a voluntary, market-led approach is the quickest way to provide fast internet connection to everybody, and we are very grateful for the industry’s co-operation.

[Lord Hunt of Kings Heath (Lab)]

My Lords, can the Minister come back to the question raised by the noble Baroness, Lady Altmann? It appears that some government departments will accept payments only if they are made online, thereby excluding millions of people from engagement. What are the Government going to do to be more inclusive?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I will discuss that with colleagues in other departments who are responsible for that particular aspect.

[Baroness Merron (Lab)]

My Lords, as the Minister himself acknowledged, automatic verification of eligibility for cheaper broadband and mobile tariffs is just one side of the story, as only 136,000 households are signed up, with potentially millions not receiving the help they could benefit from. What assessment has been made of the low-income groups who are missing out? Can the Minister commit to a targeted rather than a general campaign to increase take-up—for example, contacting claimants directly? After all, the Government are aware of who they are.

[Lord Parkinson of Whitley Bay (Con)]

The Department for Work and Pensions is working with operators to ensure that the digital verification system is consistent with that. Earlier this month, Sky became the first national provider to go live on that system, with others following in the coming weeks and months. The noble Baroness is right: this and our broader work to help households is part of a large communications campaign that is indeed targeted at the households we think will benefit from it. For example, there are adverts on cash- points, the sides of buses and pub TV screens, and leaflets have been disseminated to 150 supermarkets and to food banks and hospitals around the country to ensure that the message gets to those who will benefit from it.

[Baroness Blower (Lab)]

My Lords, would the Minister like to try again to answer my noble friend Lord Sikka’s question? Can he say why BT has not been required to offer free broadband to the poorest and most vulnerable in our society, who clearly have some of the greatest need?

[Lord Parkinson of Whitley Bay (Con)]

I did answer the question. We consider that the quickest way to get this help out is through a voluntary, market-led approach. The social tariffs are available in 99% of the country, and our communications work is to ensure that people are aware of them and take them up.

Trade (Mobile Roaming) Regulations 2023

Lord Parkinson of Whitley Bay Excerpts

Tuesday 31st January 2023 Grand Committee

Moved by

[Lord Parkinson of Whitley Bay]

That the Grand Committee do consider the Trade (Mobile Roaming) Regulations 2023.

Relevant document: 25th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am pleased to move these regulations, which were laid before your Lordships’ House in draft on 15 December. This legislation represents a world first in international trade: the UK-Norway, Iceland and Liechtenstein free trade agreement contains the world’s first provisions regulating mobile roaming charges.

Most recent free trade agreements mention mobile roaming, but provisions in those agreements talk of co-operating or even endeavouring to co-operate. However, this free trade agreement takes a further step: actually ensuring the regulation of charges in order to make a real difference to Britons travelling overseas. It is an example of the innovative trade deals we can now negotiate, bringing real benefits to British travellers.

This legislation is necessary to implement domestically the UK’s international obligations under the terms of the agreement. Technically, the legislation implements the agreement’s provisions that regulate international mobile roaming wholesale charges.

As many noble Lords will appreciate, wholesale charges are what mobile operators charge each other, as distinct from retail charges, which are what they charge their customers. The wholesale charges Norwegian and Icelandic mobile operators can charge UK operators will be capped by their domestic legislation. The legislation we are debating will cap the charges that UK operators can apply to Norwegian and Icelandic mobile operators. The caps cover wholesale charges for mobile data, voice calls and text messages. The regulation of wholesale charges in the agreement is with a view to facilitating surcharge-free international mobile roaming for British consumers to Norway and Iceland, as well as, of course, surcharge-free mobile roaming for Norwegians and Icelanders in the UK.

I note that the agreement’s provisions regulate mobile roaming wholesale charges between the UK and Norway, and the UK and Iceland. The agreement’s provisions do not apply to Liechtenstein. Therefore, this legislation is not relevant to that principality. That is because Liechtenstein decided to opt out, given its operators’ commercial relationships with Switzerland. Because of the topography and the limited geographical area of Liechtenstein, a significant part of its territory is supplied by masts from neighbouring Switzerland. I add that this legislation also ensures that Ofcom has the power to enforce the caps on wholesale charges.

Before I make way for the debate on this legislation, I will cover an issue that might form the basis of questions that noble Lords might have: the agreement’s coverage of wholesale, rather than retail, charges. The reason the agreement covers wholesale charges but not retail ones is that wholesale charges have to be covered by an international agreement. Wholesale charges are a cross-border issue; an international agreement is therefore required to cover them. UK legislation alone cannot bind the charges of Icelandic or Norwegian operators.

Retail charges can be covered by an international agreement, but they can also be covered by purely domestic legislation. This is because retail charges are between UK operators and their domestic customers. Retail charges are not a cross-border issue.

The parties concluded that this agreement should cover only wholesale charges, as these have to be covered by an international agreement. That the agreement does not cover retail charges reflects its light-touch regulatory approach. It will ensure that UK operators are protected from high wholesale charges from Norwegian and Icelandic operators. It is therefore expected that those UK operators who surcharge their customers roaming in Norway and Iceland will react at the retail level by reconsidering their approach and moving to surcharge-free services.

While the agreement is light touch in its regulatory approach, let me be clear: one of the key, publicly stated achievements of the agreement was to keep costs low for holidaymakers and business travellers in Norway and Iceland. The Government are committed to delivering that aim. They therefore expect UK mobile operators which are surcharging to reconsider their approach. If they do not, the Government have the capacity to intervene.

[Lord Deben (Con)]

On this particular point—

[Lord Parkinson of Whitley Bay (Con)]

My Lords, this is my opening speech. My noble friend will be able to join the debate in a moment. I look forward to the contributions from my noble friend and other noble Lords. I beg to move.

[Lord Deben (Con)]

I wanted to ask my noble friend: what advantage does the mobile telephone user get from us having left the European Union? Is this not a rather pathetic doing of a deal with a few countries, when everybody in Britain suffers from having left the European Union and being charged extra? This deal is just with a couple of countries—even Liechtenstein is left out.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I will take whatever small crumbs of comfort are offered by noble Lords. Looking around, I imagine that noble Lords will not be celebrating the third anniversary of our departure from the European Union this evening in the same way that I will, but I understand why they are taking account of that anniversary to use this opportunity to make some points about the European Union, which is tangentially linked to the issue before us.

As I mentioned, this statutory instrument covers only Norway and Iceland, but I am happy to respond to the points which noble Lords have taken this opportunity to make, not least to reiterate that, during our negotiations leading up to our departure from the European Union, UK negotiators did propose to the European Commission the continuation of reciprocal arrangements between the UK and the EU for surcharge-free roaming. The EU, regrettably, did not agree with that proposition. We subsequently proposed a review clause to consider the need for these agreements, should roaming surcharges return for consumers. The EU did not agree to that either, and we are unaware of any shift in its position on this issue.

My noble friend Lord Deben says that the SI refers to just a couple of countries. It is, as I say, world-leading legislation because it is the first agreement which refers to this important issue and its impact upon the bills of mobile phone users. There are nearly 200 countries around the world, only 27 of them member states of the European Union, and this issue affects travellers—holidaymakers and those from businesses—when they travel across the globe. We are proud that this agreement sets out a way for co-operation on this issue.

[Lord Deben (Con)]

I will not hold my noble friend up, and I know this is difficult, but the countries to which most people go most of the time are those in the rest of Europe. That is the fact of the matter. Will he tell me how much the average person will benefit from this deal and how much they have lost from us not being members of the European Union? What I am really fed up with is that the Government never tell us the facts about the loss from our leaving the European Union, so people cannot understand whether this is something to be cheerful about or miserable about. Today, we had a Minister referring to our freedom from the European Union; the freedom is that we now pay more and we are blaming the European Union for not giving way to the fact that we left the EU. All I want to know from my noble friend—I know this is on unfair on him—is how much the average person loses by our not having a deal with the European Union and how much they gain, on average, from being able to go to Iceland and Norway, although they will miss out on Liechtenstein.

[Lord Parkinson of Whitley Bay (Con)]

Even if I had the statistics to hand, I do not think I would be able to satisfy my noble friend entirely. I do not have the numbers to compare UK travellers visiting Norway and Iceland with, say, Bulgaria or any other EU member state. What they have gained, as the UK has gained by our departure from the European Union, is the ability to sign free trade agreements and agreements such as this which allow us to pursue these benefits. They are a model for our co-operation with countries around the world, whether they are in the European Union or not.

Decisions about imposing roaming charges on customers who travel to the EU is a matter for operators themselves. I note that some, including Virgin Mobile and O2, do not so consumers in the UK still have the option of using that network and travelling without any charge to the European Union. I do not suppose any of that fully persuades my noble friend, but I hope it addresses the points that he has raised.

As I say, this represents a world first in a free trade agreement, and we expect it to make a real difference to Britons travelling to Norway and Iceland. It was one of the key and publicly stated achievements of the agreement, when we signed it, to keep costs low for holidaymakers and business travellers going to those countries, and the Government are committed to delivering that aim.

The noble Lord, Lord Clement-Jones, asked about wholesale charges. They are set out in the statutory instrument and took the EU rates as a benchmark. The agreements sub-committee recommended to the joint committee that the current rate found in the EU roaming regulation would be appropriate for the UK, Norway and Iceland. That is consistent with the agreement’s language, which concerns looking at “relevant international benchmarks”. I should say that the sub-committee is made up of officials, while the joint committee is the senior body chaired by Ministers.

[Lord Clement-Jones (LD)]

Thank you—that is really helpful—but will those rates change when the EU benchmark changes?

[Lord Parkinson of Whitley Bay]

That is not set out in the agreement, but, as is set out in it, the joint committee will review the rates every two years, unless it decides otherwise, with a view to determining whether they are still appropriate. An option in any of the reviews could indeed be to follow the rates in the EU and EEA, as the agreement talks about “relevant international benchmarks”, but that will be for the joint committee to decide.

The noble Lord, Lord Bassam, asked whether we plan to legislate to intervene if surcharges are imposed and endure. Obviously, I cannot make commitments on the Government’s future legislative programme, but I can stress the Government’s firm desire to see the benefits of this agreement flowing to consumers in the form of surcharge-free roaming to Norway and Iceland. If that does not happen, the Government have the capacity to intervene, and we will of course keep that under consideration. We will review these in due course, noting the five-year limit set out. I fear I cannot give a more precise timeframe to the question posed by the noble Viscount, Lord Stansgate.

I think that covers all the points raised, but I will consult the Official Report and write if I have missed anything. With that, I commend the Motion.

Motion agreed.

Channel 4

Lord Parkinson of Whitley Bay Excerpts

Wednesday 11th January 2023 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, we wholeheartedly welcome the Secretary of State’s decision not to privatise Channel 4. The British public service broadcasting ecosystem is unique and has been built up over many decades. At a time when the market in which it operates has been changing radically and is continuing to change, we should be very careful indeed about making major, radical adjustments that would threaten our successful cultural economy.

I have three questions for the Minister. Can he explain what aspects of the evidence that led the former Secretary of State to the original decision have turned out to be so flaky on review as to engender such an extraordinary policy U-turn? The Statement refers to introducing “updated governance structures” for Channel 4. Given that there is to be no change to the ownership of Channel 4, can he say whether that refers to the role that government currently plays, the board, the executive structure or all of the above? Can he confirm that the proposals will require changes to primary legislation? Finally, does he agree that changing the publisher broadcaster status, enshrined as it is in statute, would be a major change not only for the channel but for the independent production sector and would materially affect the public broadcasting sector ecosystem? I look forward to his comments.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

I welcome the noble Lord back to his position on the Opposition Front Bench and wish noble Lords a happy new year. My right honourable friend set out in another place the rationale for her decision: as she said, she looked at the business case and the evidence for doing so. She was very clear, however, that, while not pursuing at this time the opportunity of a sale of Channel 4, doing nothing was not an option either. As the noble Lord rightly said, it operates in a rapidly changing media landscape and, as part of our in-depth analysis, we have established that its long-term sustainability must be addressed. Channel 4 itself has acknowledged that in its own strategy document The Next Episode. The package that my right honourable friend set out addresses that, including through some legislative change which we will be taking forward in the media Bill.

On the publisher broadcaster restriction, the Government will make changes via the Bill to give Channel 4 the freedom to make and own some of its own content—a freedom it does not currently have. That will open up a range of options for it to grow its income, which is important for its sustainability. As we have seen, Channel 4 has done a fantastic job over the last four decades in doing what it was set up to do by the Conservative Government in the 1980s: to stimulate independent production. The cost of that is going up because of a number of competitors, and I am sure we are all interested in ensuring that it has the resources it needs to do that.

[Baroness Bonham-Carter of Yarnbury (LD)]

My Lords, I too welcome the return of the noble Lord, Lord Stevenson. He is like the noble Lord, Lord Parkinson: he goes and he comes back, and it is excellent that we have both of them back on the Front Bench. Given that the Government’s approach has supposedly been driven by their concern for the sustainability of Channel 4, can the Minister tell us what plans the Government have to act urgently on bringing forward legislation on prominence, which Ofcom recommended two years ago, which the Government have been promising for months and which will make a huge contribution not just to Channel 4’s sustainability but to other PSBs? Can he confirm that there will be a media Bill imminently?

[Lord Parkinson of Whitley Bay (Con)]

I look forward to more questions on other aspects of the media Bill’s work than perhaps we have had in recent months. Yes, it is our intention to bring forward the media Bill when parliamentary time allows, so that we can carry forward important reforms that will benefit the whole of our public service broadcasting system.

[Baroness Stowell of Beeston (Con)]

My Lords, I declare an interest as the chairman of your Lordships’ Communications and Digital Select Committee. I welcome the Government’s decision on the future of Channel 4, not least because it reflects so much of what the committee recommended in the report that we published just over a year ago on the future of Channel 4—although it is worth reminding your Lordships that, as a committee which represents all sides of this House, we did not object in principle to the sale of Channel 4.

I was also pleased that the Government recognised, none the less, that the status quo was not an option for the future of Channel 4. Bearing in mind what my noble friend has just said about the media Bill, which will be necessary to introduce the legislative changes and address some other needs of public service broadcasters to ensure their sustainability, perhaps I may push him further. If he will not give us a precise timetable for when the media Bill will come, can he tell us in which order the Bills that the DCMS has on the slate are going to come? The Online Safety Bill is about to come but we are also waiting for the digital competition Bill.

[Lord Parkinson of Whitley Bay (Con)]

My noble friend will know, as a former leader of your Lordships’ House, that that decision is above my pay grade, but it is our intention to bring the media Bill forward when parliamentary time allows. I am grateful to her and the other members of your Lordships’ committee for their thoughts, which have been part of the evidence that my right honourable friend and colleagues at the department have weighed up.

[Viscount Colville of Culross (CB)]

My Lords, I declare my interest as a series producer for an independent television production company. Like many other noble Lords, I welcome the Minister’s Statement. I heard him say that the Government have now given Channel 4 the freedom to produce its own content in order to stimulate the independent sector. At the moment, Channel 4 commissions over 55% of its content from small qualifying production companies and is a major customer for many of the larger producers. Can the Minister explain how he can ensure that setting up the in-house production base will not adversely affect the independent content producer ecosystem?

[Lord Parkinson of Whitley Bay (Con)]

We know how important our independent production sector is, not just to British television but to our creative industries more widely. We are absolutely committed to ensuring that Channel 4 plays its part in supporting what is a £3 billion sector. We will increase the level of Channel 4’s independent production quota, and, in doing so, we are looking at the potential for introducing specific protections for smaller independent producers.

[Lord Grocott (Lab)]

My Lords, while the Minister must not let all those congratulations go to his head, I too certainly welcome the Statement. In particular, the reference in the document to increased investment in skills is to be welcomed, but can the Minister give some reassurance that he is bearing in mind that the recruitment of people into this sector should not come so much, as it has done in the past, from a relatively narrow section of the community? It needs to be broadly based, so that people come into it who do not necessarily have a background in broadcasting and do not see that as a career opportunity. On the other question about jobs outside London—which, again, I certainly welcome—it is not clear, when it says “from 300 to 600”, whether that is referring to a net increase in employment in Channel 4 or simply to a movement of staff from London to the other parts of the country.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is absolutely right about ensuring that all of our public service broadcasters faithfully represent the country that they serve. We want Channel 4 to increase the opportunities that it offers young people, from all parts of the country and from all sorts of backgrounds, to get a foot in the door of our creative industries. It will be doubling its investment in its 4Skills training programme from £5 million to £10 million in 2025, and that includes new job opportunities and doubling its number of roles outside of London to 600 in 2025.

[Lord Clement-Jones (LD)]

My Lords, like the noble Viscount, Lord Colville, I am very concerned about the future for independent production companies in light of the Government’s plans, but, like others, I welcome the fact that there are no proposals to sell Channel 4. Can the Minister say how much taxpayers’ money has been wasted on those fruitless plans?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, in answer to a Parliamentary Question, the Government set out that, in the last financial year, we spent £600,000 on plans for privatisation.

[Lord Birt (CB)]

My Lords, I unequivocally welcome this decision and recognise that it took some political courage to make it. In effect, the Government are again supporting public service broadcasting. I express a hope that the same attitudes and considerations that brought this sharp reversal will apply when they consider the future of the BBC over the next few years.

[Lord Parkinson of Whitley Bay (Con)]

Without wanting to interrupt the harmony that has broken out at the start of the new year, the Government have always had the best interests of the public service broadcasters, including Channel 4, at heart when looking at that issue. As we have noted, the media landscape is rapidly changing. Unlike other public service broadcasters, Channel 4 has limited ability to diversify its revenue or to raise money through borrowing or equity capital. That is why we have looked at a range of options and why we have been very clear that doing nothing is not an option.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend the Minister join me in giving a big shout out to Channel 4 for the number of European and global productions that it makes available free to view? While we were members of the European Union, we used to qualify for the MEDIA programme co-production scheme. Is that still the case?

[Lord Parkinson of Whitley Bay (Con)]

I will have to check that and write to my noble friend. I certainly echo her congratulations to Channel 4 on bringing a range of global content to viewers in this country and for sharing excellent British content with viewers around the world.

BBC: Future Funding (Communications and Digital Committee Report)

Lord Parkinson of Whitley Bay Excerpts

Friday 16th December 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, this has been a thoughtful and well-informed debate this morning, and I thank all noble Lords who have taken part in it.

The BBC is a great national institution. Over the past 100 years it has touched the lives of practically everyone in the United Kingdom and many people the world over. It makes an important contribution to our culture, our creative economy and to the strength of our democracy. I am therefore grateful to the members of your Lordships’ Communications and Digital Committee for their report on the future funding of the BBC, and in particular to its chairman, my noble friend Lady Stowell of Beeston, for securing today’s debate and for the way she set out the committee’s conclusions. I have an advantage over the noble Lord, Lord Addington, in that I did serve on the committee, albeit very briefly, so I can see from my 10 days with her and with noble Lords who have spoken today how richly she deserves the plaudits they have given her for the way she chairs it.

The committee’s inquiry took evidence from a wide range of prominent figures in the industry, experts and academics, and its thorough report has been helpful in informing the Government’s thinking on the future of the licence fee. Today’s debate has built on many of the findings in its report and highlighted the range of complex issues that will need to be considered as part of the review and as part of the Government’s decision-making on the future of the licence fee.

This debate has also explored many of the benefits and drawbacks of a number of alternative models for funding the corporation. I recognise that many noble Lords may wish to understand the Government’s position on the various alternatives which have been set out, but I should be clear at this stage that I must refrain from putting forward a detailed view on the potential alternatives. The Government are preparing to launch a review of the future funding of the BBC, as noble Lords mentioned, and we should rightly consider the findings of that review and fully assess the evidence before setting out any conclusions. However, today’s debate and the report of your Lordships’ committee are valuable contributions to that ongoing review and to informing the Government’s thinking.

I am afraid that I cannot give noble Lords an early Christmas present by setting out the precise date for the launch of the review but perhaps I can set out a few more details about our approach to it. The Government recognise that decisions over the BBC’s funding model will and should be tied up with the question of what the BBC is for in its second century, as the noble Lord, Lord Hall of Birkenhead, said. We welcome the committee’s recommendations that the BBC should set out its own thinking on the role of the corporation in the future and how the BBC can best adapt to the changing media environment. The review will focus on the BBC’s funding model and will not look at the BBC’s mission and public purposes—that is, its role and remit. Final decisions will be made as part of the charter review, which is where the future role of the BBC will also be decided, and we will certainly want the public and Parliament to be engaged in that process.

As your Lordships’ committee’s report found, there are benefits to the licence fee but its drawbacks are becoming more salient. There are a number of issues at the heart of the debate about the future of the licence fee, and the first point I will address is sustainability. As we set out in our broadcasting White Paper, there are clear challenges on the horizon, posed by rapid changes to the sector, not just for the BBC but for our public service broadcasting system as a whole.

As I outlined in the recent debate we had to mark the centenary of the BBC and explore the future of public service broadcasting, technological advances are moving in tandem with changes to how people watch television. Internet-delivered services are revolutionising how content is distributed and consumed. Some 79% of households with a television set now choose to connect it to the internet. Alongside this, viewers have continued to move away from linear television to on-demand viewing. Two-thirds of households subscribe to video-on-demand services, such as Netflix and Disney+, and YouTube reaches 92% of online adults in the UK.

As noble Lords noted, US-based streamers are increasingly using their significant financial resources to compete very effectively with both our public service and commercial broadcasters. In 2019, the UK’s public service broadcasters were collectively able to spend just under £2.8 billion on new content. At the same time, as my noble friend Lady Stowell said in opening, Netflix alone spent an estimated £11.5 billion on production globally.

The Government have set out a range of proposals to support our public service broadcasters in response to challenges such as these. This includes a new online prominence regime, updates to the listed events regime and expanded powers for Ofcom to regulate larger, TV-like, on-demand providers. We will legislate to introduce these changes when time allows.

On top of these broad reforms, it is vital that we address the specific challenges facing the BBC’s funding model. In this environment, a licence fee linked to watching live television seems increasingly anachronistic. Licence fee uptake is also in decline, with the number of households choosing to hold a television licence falling by around 1.2 million people from a peak of 26 million in 2017-18. If this trend continues, the BBC’s licence fee income will come under increasingly significant pressure unless the licence fee is raised commensurately. The director-general and chairman of the BBC have acknowledged this, with the director-general recently saying that the BBC is open-minded about new funding mechanisms.

The Government agree with the view that has been raised today that the licence fee funding model is unfair. As noble Lords have noted, it is a regressive tax. The current licence fee model also involves enforcement by criminal sanction, which we see as disproportionate in a modern public service broadcasting system, particularly because of the strain, stress and anxiety that this can cause people. These concerns about fairness are highlighted by data that show that around three-quarters of people who are convicted for television licence evasion are women—an issue that has persisted for many years. In addition, we remain concerned about the risk of prosecution for vulnerable older people, although the BBC has confirmed that no enforcement action has been taken against people over the age 75, at this stage.

The future of the BBC is a vital issue for our nation and we remain committed to reviewing its funding model. The Secretary of State was clear in her recent appearance before the Digital, Culture, Media and Sport Select Committee in another place that the BBC is a great national institution, and that the Government need to make sure that its funding is sustainable over the long term. She also set out that she holds fairness and choice to be important issues, and that they will need to be reflected properly as we consider the future of the BBC’s funding. The media landscape has changed, and the appetite for choice—an important factor—has been enhanced.

The Government want to work constructively with the BBC on the review. We see it as a positive opportunity for the corporation to bring about change, without which the BBC will be increasingly constrained in its ability to fulfil its purpose. We will need to work with the BBC to understand how different funding models could affect and support it.

It might be helpful for me to outline how the review fits into the Government’s wider road map for reform of the BBC. The funding model review will be one part of the preparations for the charter review, which is the process whereby any decision on a new funding model, and on the role and remit of the BBC, will be determined. The funding model review will aim to provide the Government with the evidence to approach the charter review with a strong understanding of the options and their potential impacts.

With the support of these findings, the Government will carry out a formal consultation on any changes to the BBC’s funding model as part of the next charter review. This will enable a public debate on the options, ahead of any decision being made. Any final decision on the BBC’s funding model over the next charter period would be made only following this public and parliamentary engagement, as part of the charter review.

A number of noble Lords rightly paid tribute to the work of the BBC World Service. The Government strongly value its work in promoting our values globally through its independent and impartial broadcasting. We recognise the challenging fiscal environment in which the BBC is operating, and that it is having to make tough financial decisions, but the Foreign, Commonwealth and Development Office will continue to provide the BBC World Service with over £94 million annually for the next three years, supporting services in 12 languages and improving key services in Arabic, Russian and English. That is in addition to nearly £470 million that the Foreign, Commonwealth and Development Office has already provided, through the World2020 programme, since 2016. In the current financial year, the Government are also providing the BBC with an additional £4.1 million of emergency funding to support the World Service to continue to deliver services in Ukraine and Russia, which are vital in the current circumstances.

I will touch on the future of the BBC more broadly. Everyone who has spoken today agrees that the BBC has been informing, educating and entertaining us for 100 years, with remarkable effect. We want that to continue for many years to come. As the debate today has highlighted, the future success of the corporation is about much more than just funding. Your Lordships’ committee’s report contained a number of recommendations for the BBC on this theme too, including the need for it to develop a long-term vision for its role and how it will deliver value and distinctiveness in a continually changing world.

We agree with the BBC on the need for the corporation to reform over the coming years and recognise that there will be challenges as it makes this transition. These reforms will involve difficult decisions, as was demonstrated by the concerns raised again today about the BBC’s plans to reduce its local radio output. The Government want to work with the BBC to support it in making this shift, but it must take audiences with it on this journey. We believe that the BBC needs to clarify how it will manage long-term decisions while modernising and becoming more sustainable, while also maintaining its core public service function and output.

The noble Baroness, Lady Rebuck, invited me to say a little about our progress on delivering nationwide gigabit connectivity, which is important to the way that people increasingly consume television. We are investing £5 billion, as part of Project Gigabit, to ensure that hard-to-reach areas of the UK get fast, reliable broadband as swiftly as possible. Gigabit coverage is currently at 72% across the United Kingdom, up from 6% in January 2019—a huge shift in a short period. We have a target for a minimum of 85% gigabit-capable coverage by 2025 and we will seek to accelerate that to as close to 100% as quickly as possible. We have now awarded four Project Gigabit contracts, having recently announced a £108 million contract in Cumbria—the home of the noble Lord, Lord Liddle—and there are a further 11 live procurements running, with more in the pipeline.

Like everyone who has spoken today, the Government want the BBC to succeed. It provides high-quality services to the entire nation and globally. It acts as a key driver to the success of our creative economy and represents the United Kingdom very proudly abroad. As the debate has highlighted, there are challenges with the licence fee funding model, but alternative models also come with their own challenges and trade-offs. I am very grateful to noble Lords, particularly the members of your Lordships’ committee, for their detailed thoughts and contributions to this vital debate. I look forward to that continuing.

Arts Council England: Regional Distribution of Funding

Lord Parkinson of Whitley Bay Excerpts

Thursday 15th December 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, people are sometimes sniffy about revivals of old productions or reruns of old programming. I am conscious that we had a three-hour debate on a similar theme last week but, with today’s stellar cast, our debate this afternoon has been a triumphant encore. In paying generous tribute to all and sundry, my noble friend Lord Vaizey is so much more than a tribute act. If I repeat some of my lines today, it is in that spirit and with respect to the original text.

In all seriousness, I am very glad to have this opportunity for further debate, including with a number of noble Lords who were not able to speak in last week’s debate. Again, they have made thoughtful contributions to this important topic. There have been a number of debates in both Houses on it, which is to be welcomed and demonstrates the breadth of support across both Houses of Parliament for arts and culture in our national life.

His Majesty’s Government are firmly committed to supporting arts and culture across the whole country. Our investment in culture remains a key part of our work to level up access and opportunity, as the noble Lord, Lord Storey, said in his opening speech. Like others, I wish a speedy recovery to the noble Lord, Lord McNally, on whose behalf he opened today’s debate—and indeed a happy birthday to the noble Lord, Lord Freyberg.

As the noble Lord, Lord Storey, said, access to high-quality arts and culture needs to be more fairly spread; the economic growth and life-changing benefits that come from arts and creativity should be felt by everyone, and the sense of pride that culture and heritage can bring to communities should be felt in every part of our country. I was struck by how fitting the name “Hope Street” is: the noble Lord mentioned the Everyman Theatre, and it is also home to the Royal Liverpool Philharmonic, the Merseyside Academy of Drama and many other institutions. Arts and culture bring hope and pride to communities across the country.

As the noble Lord said, for too long, not everywhere has been getting its fair share of funding and opportunity. In the last national portfolio round of funding from the Arts Council, London was funded to the tune of about £21 per capita; the rest of the country, to the tune of £6 per capita. That is a striking discrepancy, even allowing for the important role played by our national capital. It is why we asked Arts Council England to ensure that it was investing more in other parts of the country and why, working with it, we identified more than 100 Levelling Up for Culture Places. We did so transparently; the methodology and metrics used have been published on Arts Council England’s website, which identifies which places have benefited. That was in keeping with Arts Council England’s long-standing work to ensure that arts, culture and creativity are better supported across the whole of England.

As a result of that work, a record number of organisations applied for funding in the next investment programme and a record number were included—990. That is an increase from 814 in the last portfolio and 663 in the one before. As I mentioned in my closing speech last week, this is as a result of a larger pie of funding. My right honourable friends Oliver Dowden and Nadine Dorries secured, at the last spending review, an increase of more than £43 million to the Arts Council’s grant in aid budget for the spending review period. So more organisations are being funded in more parts of the country, with a larger pot of funding. Every part of England beyond London is seeing an increase in its funding and every part, including London, is seeing an increase in the number of organisations funded. Many places will now be home to funded organisations which have never been home to them before—places such as Bolsover, Mansfield and Blackburn.

In Liverpool, the home city of the noble Lord, Lord Storey, Arts Council funding has increased very significantly, by nearly 40%, with over £11 million each year to support 29 organisations across the city region. That picture is replicated in other combined authorities: Tees Valley is set to see a 49% increase in funding and West Yorkshire a 47% increase. That change is transformative and unprecedented.

The new portfolio will improve access to arts and culture across the whole country and for people from all backgrounds. Some 120 organisations in the new portfolio are led by people from lower socioeconomic groups; 148 are led by people from ethnic minority backgrounds—an increase from just 53 organisations in the last portfolio; and 32 organisations are led by people with disabilities. In the debate last week, I mentioned DASH in Shropshire, which I saw four weeks ago. The Levelling Up for Culture Places will see investment almost double, receiving £130 million over the next three years—a 95% increase in investment in these areas.

A number of noble Lords took the opportunity again today to highlight English National Opera in particular. We are joined again by its excellent chairman and chief executive, Harry Brünjes and Stuart Murphy. It is testament to the quality of its work and the support that it has that the noble Lord, Lord Freyberg, has devoted part of its birthday to singing its praises—rightly. I am happy to repeat the praise that I gave from this Dispatch Box last week. Like the noble Lord, Lord Clement-Jones, I enjoyed its productions of Philip Glass—I saw “Akhnaten” and “Satyagraha”, as well as “My Fair Lady”. I also saw the important work it did through the ENO Breathe programme, which was recognised in the Lancet as well as the mainstream press.

I will highlight, as I did last week, the fact that this is one decision out of 1,700 that the Arts Council considered. As I said, there are a record number of organisations in the next portfolio—990—but unfortunately there were over 700 who applied and were unsuccessful on this occasion. I would love to be the Arts Minister who could ensure that all applicants receive the support they request, but no Minister ever could be. As the noble Lord, Lord Bassam, said, there is a finite pot, albeit a larger pot than in the previous round, and the difficult job that the Arts Council has is to ensure that that finite pot of taxpayers’ money is invested fairly.

Arts Council England has offered the English National Opera a package of support, and at DCMS we have been keen to ensure that the two organisations are speaking directly about it. We are very keen that they both continue to work together on the possibilities for the future of the organisation. I am afraid that I cannot say much about that, out of fairness to both, but I am glad that they are speaking and encourage them to keep doing so.

A number of noble Lords raised questions on opera more generally. The noble Lord, Lord Clement-Jones, suggested that this art form had perhaps been targeted. I would like to reassure noble Lords that for the next investment programme, Arts Council England’s investment in opera, orchestras and other classical organisations will represent around 80% of all investment in music; opera, specifically, will remain at around 40% of the Arts Council’s overall investment in music. Organisations such as the English Touring Opera and the Birmingham Opera Company will receive increased funding, and there are many new opera companies joining, including Opera Up Close and Pegasus Opera Company based in Brixton, which I visited last week. Indeed, there are more opera companies in the new portfolio than there were in the last one. The single largest recipient of funding in the portfolio remains the Royal Opera House, which is also home to the Royal Ballet, which will continue to be funded and will receive around £22 million, the same as all of the east Midlands put together.

A number of noble Lords talked about touring, and I know some may be concerned that considering where an organisation is headquartered is rather a blunt instrument when it comes to levelling up. Touring is important, and the Government and the Arts Council have been encouraging our biggest cultural organisations to keep striving to reach out beyond their home areas. We do not, in any respect, disparage or undervalue that vital work, but we cannot level up culture by touring alone. There is a difference in having an organisation based in your community from just being able to visit it as it passes through your town or city. When we were debating this last week, the chief executive of the Arts Council, Dr Darren Henley, was giving evidence to the Select Committee in another place. There he made the important observation that, as well as touring,

“centres of production excellence and creativity around the country are important too”.

That comment echoes the contribution made by the noble Lord, Lord Berkeley of Knighton, in his speech today.

For those organisations in areas which will now be in receipt of support in the new portfolio, I hope it will mean supporting creative individuals working in a community; making material which is uniquely relevant or reflective of that community; forming local clusters of creative jobs and firms; extending opportunity for people who wish to work in these thriving sectors; and boosting the pride of communities. This is nothing new. Perhaps I may quote the late Lord Keynes, who was the first chairman of the Arts Council and told a BBC magazine in 1945:

“Nothing can be more damaging than the excessive prestige of metropolitan standards and fashions. Let every part of Merry England be merry in its own way.”


I am not a natural Keynesian, but on that I certainly agree. As a number of noble Lords said, it is absolutely right that art and culture that is produced and consumed in these merry parts of England is, and should be, just as good as that which is enjoyed in the metropolis.

I will add the book recommended by the noble Baroness, Lady Fox, to my Christmas reading list; I completely agree with her about the brilliant work of autodidacts in culture. Coming from the north-east, I think in particular of the Ashington Group and the Pitmen painters—self-taught, working-class painters whose art I very much admire and have seen in the Woodhorn Museum in Northumberland. Their story was powerfully told in a play, “The Pitmen Painters”, which began at the Live Theatre in Newcastle and transferred to the National Theatre in London before going on tour around the United Kingdom and thence to Broadway, Vancouver and Buenos Aires, where an interesting array of Geordie accents was on display to global audiences. They told powerfully that working-class story about the north-east of England, which is what we want to see.

I agree with the noble Earl, Lord Clancarty, about the importance of new writing. New Writing North, which is based in the north-east, will receive an additional £90,000 in the new portfolio. I visited Pentabus, a company supporting writers talking about rural England and sharing the stories of people from rural backgrounds. There is also increased investment in the new portfolio for the Bush Theatre, as well as continued support for the Talawa Theatre Company and the Kiln Theatre, all of which are based in London, to support new writing in theatre. Theatre remains the art form most generously supported through the Arts Council’s new portfolio.

A number of noble Lords talked about the impact on London. Once again, let me be clear that we remain committed to supporting the nation’s capital. We recognise and appreciate that London is a world-leading cultural centre, with organisations that do not just benefit the whole country but greatly enhance the UK’s international reputation as a home of world-class arts and culture. Here, again, the late Lord Keynes points the way. He said that

“it is also our business to make London a great artistic metropolis, a place to visit and to wonder at.”

Once again, I agree wholeheartedly. This principle is clearly reflected in the Arts Council’s next investment programme. Around a third of its investment will be spent in London, equivalent to approximately £143 million per year for the capital; London will receive around a third of the funding despite having just 16% of the population of England.

Further, this funding will be spread across London in a fairer way. We are not just levelling up between London and the rest of the country; we are levelling up within London too. In the previous funding round, the top four organisations in London represented 43% of London’s budget. The funding is more equitably shared across London in the new portfolio, with 61 London-based organisations receiving funding for the first time, while the Arts Council’s priority places in London—the boroughs of Croydon, Brent, Enfield, Barking and Dagenham, and Newham—will receive £18.8 million over the next three years. In Croydon alone, investment will double to just under £5 million, and the borough will see three new organisations join the portfolio. The new Arts Council portfolio will give people right across the country more opportunities to access culture on their doorsteps.

The noble Earl, Lord Clancarty, repeated the question posed by the noble Baroness, Lady McIntosh of Hudnall, in our debate last week about the instruction from the previous Secretary of State to Arts Council England. I think that I responded to it, but I am happy to do so again. I gladly set out the Government’s commitment to the arm’s-length principle in my speech last week. It is not contradictory in any respect for the Government to request that the Arts Council disburse its taxpayer funding according to a set of broad parameters while ensuring that central government and Ministers are in no way involved in the individual decisions that the Arts Council makes. The letter from my right honourable friend Nadine Dorries is published for all to see on the Arts Council’s website, so this has not been a hidden process; it has been done explicitly. She made a Written Statement to Parliament at the time and was proud to do so.

Funding for arts and culture comes from taxpayers right across the country, so it is right that it should benefit people in every part of the country. As I said last week, that taxpayer subsidy through the Arts Council is only one part of the way in which cultural life in the country is supported. My noble friend Lord Mendoza set out the manifold ways we work to support the arts and culture across the country, and I pay tribute to him for his years of hard work delivering those important programmes which make such a difference.

My noble friend Lord Vaizey of Didcot is right to point to the mixed model we have in this country of taxpayer subsidy alongside the importance of private and commercial philanthropy. When my noble friend was a Minister, he brought in programmes such as the cultural gift scheme, which has been such an important addition to encourage gifting and philanthropy in the arts. I completely agree with him on the importance of recognising people who are generous in that way through the honours system, and I take the point he made about our new sovereign’s particular interest. I am glad that he mentioned the 70th anniversary of the Waverley criteria, which we marked this week. Saving works of art and cultural objects for the nation has enriched collections in museums and galleries right across the country and not just in our capital.

As noble Lords will know, last month, in the Autumn Statement, my right honourable friend the Chancellor set out his plans to restore stability to the economy, to protect high-quality public services and to build long-term prosperity for the United Kingdom. He also announced a £13.6 billion package of support for business rates payers in England, which will support businesses across the arts and cultural sector, just as it will across the wider economy. He confirmed plans for the second round of the levelling-up fund, with at least £1.7 billion to be allocated to infrastructure projects around the UK before the end of the year. The levelling-up fund has three themes: local transport projects; town centre and high street regeneration—both of which have an important connection to the arts and culture—and supporting cultural and heritage assets. That is another boost for the arts and culture and, again, a recognition of their role in the economy and our wider lives. Officials in DCMS and our arm’s-length bodies have been supporting the assessment and prioritisation process of the levelling-up fund, and I am very pleased that the second round will include the potential for up to two £50 million flagship culture and heritage projects.

I am grateful for the further opportunity to set out how the Government’s extensive programme of support through the Arts Council’s NPO programme is benefitting areas right across England. I hope noble Lords will agree that, by increasing investment beyond the capital, the Arts Council will help to generate cultural and creative opportunities for more people and in places that have been overlooked for too long, and in doing so redress the historic imbalance in funding. I strongly believe that such investment will ensure that our world-class arts and culture will continue to thrive right across every part of England.

Football: Abuse and Violence

Lord Parkinson of Whitley Bay Excerpts

Monday 12th December 2022 Lords Chamber

[Lord Mann]

To ask His Majesty’s Government what discussions they have had with football authorities about abuse and violence directed against referees and other match day officials.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, His Majesty’s Government are clear that all forms of antisocial behaviour, abuse and assault against match officials, whether on or off the pitch, are completely unacceptable. The Government regularly discuss the measures being taken by the football authorities to stamp out this behaviour and will continue to press for action against the small minority of people who act in this way.

[Lord Mann (Non-Afl)]

There are a large number of 14 to 17 year-old children—boys and girls—who are referees. The Football Association tells me that it is 35% of registered referees. Despite their age, these children receive abuse from parents and coaches—from adults. In some cases, when that happens they have to go, without support, into a decentralised system run by the FA and face the person who has abused them. Does the Minister agree that the FA needs a centralised system and that the first principle for these children should be safeguarding, not the football systems that currently prevail?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord raises an important issue. One of the great powers of sport is that it brings people of all ages and all backgrounds together. Of course, we want everybody who takes part to have a fulfilling and enjoyable experience. That is a matter for the football authorities, but I will be very happy to undertake to make sure that officials at my department are speaking to them about this issue.

[Lord Addington (LD)]

My Lords, will the Government give us some idea of their opinion of the professional conduct in football whereby people sit around and shout at a referee who has given a decision they do not like? Will the Government encourage the FA to make sure that dissent is punishable by a card or a sending off? If you do this, you can rest assured that professional managers will not want to end games with seven or eight players.

[Lord Parkinson of Whitley Bay (Con)]

We believe that change needs to come from the top and participants in the professional game have the opportunity to be positive role models for people taking part at every level. That is a central message in the FA’s new “Enough is Enough” campaign. Underlining this, last month the FA challenged a decision by the independent regulatory commission only to fine the manager of Liverpool FC following his sending off by the referee for shouting in the face of a linesman. The FA won its appeal and Mr Klopp served a one-game touchline ban.

[Lord Wolfson of Tredegar (Con)]

My Lords, I declare a double interest after that answer, as both a member of the Football Regulatory Authority and a supporter of Liverpool Football Club. As my noble friend has said, all forms of abuse are unacceptable. The FA is doing important work in this area, including safeguarding. There are going to be increased sanctions, more education for both players and supporters and, at grass-roots level, the introduction of the sin-bin—which may be an idea that my noble friend the Chief Whip will take up at some point. Does my noble friend welcome these developments and the increased focus to make sure that every match official is protected from abuse within and outside the stadium, so that we can all make the beautiful game even more beautiful?

[Lord Parkinson of Whitley Bay (Con)]

I congratulate my noble friend on his appointment and commend the work undertaken by the Football Association. I have mentioned its “Enough is Enough” campaign, which is taking action against anybody whose behaviour is unacceptable. The FA can also ban anybody who is abusive or violent towards match officials, and stricter sanctions have been introduced this season which will see longer bans put in place and mandatory education courses before anyone found guilty can return to football.

[Lord Pannick (CB)]

My Lords, does the Minister agree that even in the most important football games, referees sometimes make inexplicable decisions—a whole series of them—which have a very adverse impact on the result? In the light of that, will he commend the attitude of the England manager, Gareth Southgate, and the England players, who displayed admirable sportsmanship in the most difficult of circumstances?

[Lord Parkinson of Whitley Bay (Con)]

I will not speculate on any recent examples of the behaviour the noble Lord mentions, but I most certainly do congratulate the whole England football team for their conduct throughout the World Cup. They have made people, not just in England, very proud of their behaviour and people have enjoyed their very creditable performance.

[Lord Woodley (Lab)]

My Lords, unfortunately I have personal experience of being assaulted on a football pitch as a young referee. I do not recall making any bad decisions, by the way. In all seriousness, the Minister said that this was a small minority of cases; I only wish that that were true. I am the president of a very large kids’ football team, involving some 400 children, and we have to make sure that parents—both mums and dads—who are looking after kids of only five, six or seven years of age, are not shouting abuse at referees or even running on to the pitch. Is it not possible for the county FAs to give very clear directions that, if anything like this happens, the parents should be banned from watching their games and teams for at least a full season?

[Lord Parkinson of Whitley Bay (Con)]

It is indeed for the FA to make sure that good behaviour is promulgated throughout the football pyramid. Where behaviour is criminal, such as assault, incidents should be reported to the police and appropriate action taken. The police and the Crown Prosecution Service have a range of legislation they can use to address serious incidents of other sorts. However, it is up to everybody in leadership positions in football to ensure that good behaviour is promoted at every level.

[Lord Watts (Lab)]

My Lords, is this not yet another example of domestic football not being managed properly? When do the Government intend to introduce a regulator to start to deal with some of these problems?

[Lord Parkinson of Whitley Bay (Con)]

These issues were looked at as part of the fan-led review conducted my honourable friend Tracey Crouch, and it was clear that the Government need to take action. Leaving certain things to the sector has not worked for decades, and fans have been let down by certain owners not acting responsibly. We will be setting out our plans to reform club football governance in the White Paper that is coming soon.

[Lord Londesborough (CB)]

My Lords, I understand that body cameras worn by referees are being trialled by some leagues in adult grass-roots fixtures. It sounds like a sensible initiative. Can the Minister update us on it?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

Technology is indeed helping in football, as it is in many sports. That is a matter for the football authorities, but I will certainly reinforce the noble Lord’s point.

[Lord Hunt of Wirral (Con)]

Would my noble friend like to take this opportunity to congratulate the England team on a 26-run victory over Pakistan, in circumstances where everyone respected the umpire and the way in which the cricket was played there?

[Lord Parkinson of Whitley Bay (Con)]

I most certainly would. My noble friend makes an important point about good behaviour, which we see across a number of sporting forms.

[Baroness Merron (Lab)]

My Lords, those who officiate at football matches, at every level, have a thankless task in making real-time decisions in the blink of an eye, mostly without the assistance of VAR. They undoubtedly deserve our respect and admiration for their commitment to fair play. What consideration has been given to using the forthcoming Online Safety Bill to tackle threats to match officials that are made on social media?

[Lord Parkinson of Whitley Bay (Con)]

We have already had discussions in connection with the Online Safety Bill to make sure we tackle the completely unacceptable form of abuse we see against football players and others in leading positions in sport, following their performances. The Bill is designed to ensure that everybody has a safe and enjoyable experience online, and I look forward to debating it with noble Lords when it reaches your Lordships’ House.

[Lord Kirkhope of Harrogate (Con)]

My noble friend acknowledges, as other noble Lords have mentioned, the enormous amount of time that young people spend playing and enjoying football. Does he not think that we ought to be speaking out more about some of the influencers from senior clubs and the language that appears to be permitted in our football grounds?

[Lord Parkinson of Whitley Bay (Con)]

Yes—verbal abuse and some of the chants that we hear need to be addressed. The FA’s “Enough is Enough” campaign is, as I say, making it clear that anybody who undertakes unacceptable behaviour will have action taken against them.

[Lord West of Spithead (Lab)]

My Lords, I qualified as a football referee at Dartmouth in 1966, and I gave up after a few years because I was conscious of making wrong decisions. Within the service environment there was not this threatening behaviour, but there is no doubt that, when one has made certain decisions—and the referees do work very hard—such threats are really damaging and dangerous. Something has to be done to stop this happening.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, 1966 was clearly a very good year for football in this country. The noble Lord makes an important point: there are fantastic role models in the Navy and across the Armed Forces, who demonstrate very high-quality behaviour. That is what we want to see at football matches, so that everybody can enjoy the game.

Arts and Creative Industries Strategy

Lord Parkinson of Whitley Bay Excerpts

Thursday 8th December 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, this has been a long, thoughtful and well-informed debate. As the noble Viscount, Lord Chandos, said, on Monday night there was a similar debate in another place. The deputy arts editor of the Times thought it was

“an indictment of the government’s attitude to the arts”

that the Arts Minister could not take part in that debate, because I sit in this House. At the risk of sounding thin-skinned, I want to respond to that—not to defend myself or the Government particularly but to defend the work of your Lordships’ House and our bicameral system, particularly as the party opposite now thinks we are indefensible and should be abolished.

Monday’s debate in another place lasted 30 minutes and had 10 speakers. Today’s will last up to three hours and has 21 speakers, including a former Arts Minister, a prize-winning dancer with the Royal Ballet, a chairman of English Heritage, an executive director of the National Theatre and leading light at the Royal Shakespeare Company, a teacher who ran her local youth theatre and many more. The noble Viscount set out his own credentials at the beginning of the debate and he follows in a proud family tradition: I believe it was his grandfather after whom the Lyttelton Theatre on the South Bank is named, following his work as the first chairman of the National Theatre.

Noble Lords have asked detailed questions today, based on their decades of expertise. Any policy area is fortunate to be scrutinised in your Lordships’ House and I, for one, am glad to be held to account here, so I am grateful to the noble Viscount, Lord Chandos, for giving noble Lords the chance to do that today—but I take some small exceptions to the framing of his Motion.

The terms of the Motion imply that protecting our world-leading creative industries and ensuring that more people have the opportunity to enjoy or take part in them through levelling up are somehow in opposition, and I must disagree. The point of levelling up is to make sure that everyone, in every part of the United Kingdom, can be part of the arts and creative industries’ success story. That is a story that many noble Lords have told eloquently again today. The noble Viscount’s Motion talks of “the case for” a strategy towards the arts and creative industries, implying that there is not one already. I am happy to reassure him that there is, and glad to have the opportunity to explain how it is shaping the approach taken by the Government and our partners, such as Arts Council England.

Specifically, I point noble Lords to: the levelling-up White Paper, which was published in February; the work we are conducting with the Creative Industries Council to develop a sector vision; and Arts Council England’s 10-year strategy, Let’s Create, which was developed in consultation with the public and people from across the arts and cultural sectors, and approved by government Ministers when it was published in 2020.

For more than three-quarters of a century, the Arts Council has nurtured cultural life in this country and kept it separate from party politics. It is a cross-party legacy; it succeeds the Council for the Encouragement of Music and the Arts, which was set up in the dark days at the beginning of the Second World War by the national Government led by Neville Chamberlain. As noble Lords rightly reminded us, it was given its royal charter and new name in 1946, under Labour’s Attlee Government. It is a cross-party model of which we should be proud and which has been emulated across the world. Its decisions about which organisations to fund and by how much are taken at arm’s length from government Ministers, so if I do not go into detail on some of the specific organisations raised by noble Lords today, that is not to be slopy-shouldered but to defend that arm’s-length principle, which the noble Baroness, Lady Andrews, and others extolled.

As a number of noble Lords noted, Arts Council England plays a central role in supporting arts and culture in this country. It recently announced the outcome of its investment programme for 2023 to 2026, investing £446 million each year in arts and culture across England. It is doing that in a slightly different way to previous rounds, but in line with the trend the Arts Council itself has been pursuing for a number of years and over a number of rounds. It might be helpful to take a step back to provide a bit of context.

Most cultural organisations in this country do not rely on funding from the Government or from the Arts Council. As the noble Baroness, Lady McIntosh, said, it is just one piece of the jigsaw, albeit a vital one. We saw the Culture Recovery Fund, the emergency support of more than £1.5 billion that the Government provided during the pandemic, helping more than 5,000 cultural organisations across England. Many of them had little relationship with the Government or the Arts Council until the pandemic hit—or indeed with the British Film Institute, Historic England or the National Lottery Heritage Fund, which helped us to distribute that emergency funding—but they were grateful for the help that came when they needed it. As a result of the work we did in the pandemic, we have a sort of Domesday Book of culture, showing the full range of organisations across England that weave the rich tapestry of cultural life in this country.

More than 5,000 organisations received support through the Culture Recovery Fund. Only 1,700 applied for Arts Council funding in the next investment programme. While noble Lords are right to probe how that money is being spent, it is important to remember that it is only one way in which arts and culture are supported in this country. None the less, 1,700 represents a record number of applications for the Arts Council’s competitive funding and a record number of organisations, 990, will receive funding as a result—more organisations than ever before and in more parts of the country. Some 276 organisations are set to join the portfolio for the first time, with 215 of them outside London. This reflects our commitment to distribute funding and access to arts and culture more fairly. However, in London more organisations will be funded in the next round than the last—283 compared with 268.

The noble Viscount, Lord Chandos, talked about the size of the pie that is available in funding. I am pleased that my right honourable friends Oliver Dowden and Nadine Dorries secured an uplift for the Arts Council at the last spending review. There was an additional £43 million for the Arts Council’s grant in aid. We did not succumb to the macrotemptation mentioned by the noble Lord, Lord Londesborough. Thanks to this larger pie and increases from the National Lottery, Arts Council England will be spending £30 million per year more through its core investment programme than in the previous NPO round.

The question is how that larger pie should be sliced. In the last portfolio London benefited disproportionately, receiving around £21 per capita compared to an average of £6 per capita in the rest of the country. Even accounting for the important role that London plays as our capital and the wonderful organisations housed here, that is a stark discrepancy. Some 133 local authorities across England did not receive any funding—not a penny. A national portfolio should be based across the nation. I am sure that noble Lords would agree that it is not the case that there is no culture of note in places like Bolsover, Mansfield or Blackburn. These areas are all now represented in the new portfolio, which covers 217 local authorities compared to 180 last time.

Working with the Arts Council, DCMS identified 109 levelling-up for culture places which received historically lower levels of funding, or which had lower levels of participation through metrics we set out transparently and published on the Arts Council’s website. Because of that decision, investments in those levelling-up for culture places were more than doubled.

The noble Baroness, Lady McIntosh, asked about the instruction to the Arts Council. The letter from the previous Secretary of State to the Arts Council was published and set out precisely what she asked it to do. It is important to stress that it was not giving instructions based on specific institutions or art forms, but it was asking the Arts Council to ensure that the taxpayer subsidy—which comes from taxpayers across the country—is spread more equitably across England. That is consistent with the arm’s-length principle we all cherish.

As a result, towns like Mansfield will receive funding for the first time. Mansfield District Council will receive £1.7 million over three years to manage Mansfield Museum and Mansfield Palace Theatre. Unanima Theatre, which brings young people and adults with intellectual and developmental disabilities together, will benefit from nearly £700,000 over three years—something I hope noble Lords welcome.

We have seen an increase in the number of organisations led by people with disabilities in the new portfolio to 32. I had the pleasure of visiting one of them, DASH in Shropshire, three weeks ago. We have also seen a huge increase in the number of organisations led by people from black, Asian and ethnic-minority backgrounds, from 53 in the last portfolio to 143 in the next. Arts, culture and creativity are all enriched when everybody is able to tell and share their stories. I congratulate the Arts Council on its work to enable that.

At the same time, we recognise the special role played by our nation’s capital. It houses world-class institutions. People visit them from all over this country, and indeed from all over the world. We see that particularly at the moment as tourists flock to London to enjoy the cultural offering. Those institutions perform a levelling-up function in providing a national stage on which people can perform. For the fictional Billy Elliot, it was dancing with the Royal Ballet which persuaded his family of the value of dance as an artistic medium. That story is based on “Dancer”, a play by Geordie playwright Lee Hall, which premiered at the Live Theatre in Newcastle and was heavily influenced by the photographer Sirkka-Liisa Konttinen’s book Step by Step, about a dancing school in nearby North Shields, the town of my birth. The film “Billy Elliot” made over $100 million at the box office. It won three BAFTAs and was nominated for three Oscars, which is an illustration of the economic benefit and soft power of UK culture. We want to see more films and plays like it. That is why I am proud to see an additional £90,000 going to New Writing North to encourage new playwrights like Lee Hall and continued funding of £640,000 for the Live Theatre and its connected organisations. Like the noble Lord, Lord Shipley, I am delighted by the cultural renaissance we are seeing on Tyneside.

Noble Lords and people beyond this House may disagree with some of the individual funding decisions taken by the Arts Council. They were made entirely independently of the Government, so, as I said, I cannot comment in detail on individual outcomes. They were taken against well-established criteria and expectations, with careful consideration taken by employees and the regional and national councils of the Arts Council, who have a deep understanding of the sector. Some of them are appointed by the Government; some are appointed by other politicians such as the Mayor of London. Many others are simply drawn from people with expertise across the sector and in their regions.

A number of noble Lords have mentioned the English National Opera. I saw earlier that its excellent chairman Dr Harry Brünjes and its excellent chief executive Stuart Murphy were here watching our debate. I think one of their colleagues has stayed behind; they are all very welcome. The English National Opera has done tremendous work. I pay tribute to it and all the staff for the work they have done, including the fantastic ENO Breathe programme, which has been helping people with respiratory problems as we emerge from the pandemic. The noble Viscount, Lord Chandos, asked about transitional funding for the ENO. I confirm that Arts Council England has offered the ENO a package of support. We are keen that the Arts Council and ENO work together on the possibilities for the future of the organisation. My right honourable friend the Secretary of State encouraged the Arts Council to provide a larger and longer pot of transitional funding, which will be available to all organisations affected by the decisions in this portfolio. I reassure noble Lords that in the new investment programme, Arts Council England’s investment in opera, orchestras and other classical organisations will represent around 80% of all investment in music. I hope that will be music to the ears of the noble Baroness, Lady Wheatcroft.

Through this programme, opera will continue to be well funded, remaining at around 40% of overall investment in music. Organisations such as English Touring Opera and the Birmingham Opera Company will receive increased funding. There are many new joiners such as Opera Up Close and Pegasus Opera Company based in Brixton, which I had the pleasure of visiting yesterday. The Royal Opera House will continue to be funded, receiving the largest amount of any organisation in the portfolio of more than £22 million—about the same as all of the east Midlands.

London’s role as a global cultural centre is clearly reflected in the next investment programme, with 61 London organisations receiving funding for the first time, including the Jewish Museum and the Foundling Museum. Arts Council priority places in the capital such as Croydon and Brent will receive £18.8 million over the next three years. In Croydon alone investment will double, and the borough will see three organisations join the portfolio. We are levelling up within London as well as between London and the rest of the country.

As noble Lords have noted, this funding round was extremely competitive. With a record number of applications, it was inevitable that some organisations would be disappointed. As the noble Baroness, Lady McIntosh, said, it was ever thus. There is no automatic entitlement for arts organisations to continue receiving public funding in perpetuity. We recognise that leaving the portfolio can be an anxious and challenging experience, particularly as we emerge from the pandemic and with the challenges of the winter we all face. But this can also lead to organisational innovation and development in the organisations that did not get as much as they were bidding for. As the noble Viscount, Lord Chandos, said at the start, the nature of the arts is to be open to dynamic change, and I agree with him that this should be encouraged carefully, mindful of the need for balance.

A number of noble Lords mentioned the creative industries sector vision that we are developing, which will set out our 2030 ambitions to drive growth and employment in our world-renowned creative industries as well as increase the positive impact that they can play in our lives. I recognise that the delays in publication have been frustrating, but we will publish it early in the new year—I hope that is better than “in due course”. At the heart of the sector vision is £50 million of investment from DCMS to drive growth across the country through the Create Growth programme, the UK games fund and the UK global screen fund. UKRI has announced over £100 million of support for R&D and innovation in the creative industries, including the creative catalyst and CoSTAR programmes.

In August last year, we announced our flexi-job apprenticeship offer, including a £7 million fund to support sectors with flexible employment patterns and project-based working, which is particularly the case in the creative industries. Five active flexi-job apprenticeship pilots are currently under way, with creative employers such as the BBC and the National Theatre. The ScreenSkills apprenticeship pilot, supported by DCMS, Netflix and Warner Bros, also focuses on widening participation and diversifying the talent pipeline in the TV and film sectors. Both the Department for Education and DCMS continue to work closely with the creative sectors through the creative advisory group to explore further possibilities and flexibilities for apprenticeships, alongside other post-16 pathways, including T-levels, higher technical qualifications and skills boot camps. I am delighted that the noble Baroness, Lady Bull, has agreed to chair the expert panel to inform the new cultural education plan.

The noble Lord, Lord Storey, spoke with passion about ensuring that everyone, whatever their background, has the opportunity to take part in arts and culture. You should not have to sofa-surf in London or know someone already in the business in order to pursue a career in the arts that can be rewarding in every sense of the word. As a former comprehensive schoolboy who grew up in Tyneside and rural Suffolk, I feel passionately about this and welcome the expertise that the noble Baroness, Lady Bull, will bring, along with her fellow panel members, to help us to deliver that. She is right to highlight the commission of the Local Government Association, chaired by the noble Baroness, Lady Young of Hornsey—I am pleased to say that I will attend its launch later this afternoon.

A number of noble Lords talked about the international reputation of UK arts and creativity. The cultural sector is a key asset that boosts perceptions of this country abroad, with both a financial and a reputational return on investment. Research shows that people who have been exposed to UK culture and education report more interest in doing business with the UK than those who have not—an average difference of 11 percentage points.

The noble Viscount, Lord Stansgate, talked importantly about the two cultures, which have never been closer, and the importance of science and scientific researchers. He may have seen the new exhibition at the Science Museum, “Injecting Hope”, about the search for a Covid vaccine. This will move from London to tour China and India. Earlier this week, I was at the Grant Museum of Zoology at UCL, which benefited from the £4 million pot of funding from the DCMS/Wolfson Foundation.

The noble Viscount and the noble Baroness, Lady Crawley, mentioned the importance of touring. We have supported the sector to adapt to new arrangements with the European Union, and we worked extensively with it and directly with EU member states to clarify arrangements on the movement of people, goods and haulage. We have worked across government and with the industry to develop guidance on landing pages on GOV.UK specifically for touring musicians and other creative professionals. We have worked to ensure that that is clear, accessible and available to people, and we continue to work with the sector to make sure that it is.

I mentioned the Government’s commitment through the Culture Recovery Fund, but a number of noble Lords asked about freelancers. The Omicron strain hit about this time last year, and I am glad to say that we provided £1.5 million of emergency funding specifically for freelancers, matched by £1.35 million from the theatre sector, which was distributed through the Theatre Artists Fund, Help Musicians and the Artists Information Company. This helped in addition to the money provided to organisations to ensure that they were able to open their doors and employ freelancers when the pandemic abated.

The last Budget increased tax reliefs for theatres, orchestras, museums and galleries until 2024. These additional tax reliefs are worth almost £250 million to the sector and are a fantastic boost to it to keep producing the content for which we are world famous. Taken together, along with the other pan-economy support measures that the Treasury provided, these interventions supported the cultural sector throughout the challenges of Covid. Furthermore, the £500 million film and TV restart scheme helped us to ensure that our screen sector could continue to produce content safety, protecting over 100,000 jobs and more than £3 billion of production spending.

We continue to be aware that arts and cultural organisations face new challenges because of the increase in energy prices. I recently hosted a series of round-table discussions with people from the performing arts, heritage and museum sectors to ensure that we maintain our focus on the ongoing impact of energy price increases and inflation as well as identifying opportunities to improve energy efficiencies. The Government continue to support all sectors in the economy this winter with the energy bill relief scheme, but I have heard first-hand how important this support has been to our cultural organisations. DCMS has worked closely to inform the Treasury-led review of the scheme, which will be published by the end of this year, and we have provided evidence on the nuanced challenges faced particularly by the cultural sector as part of this review.

In the Autumn Statement last month, the Chancellor set out his plans to restore stability to the economy, protect high-quality public services and build long-term prosperity. He also announced a £13.6 billion package of support for payers of business rates in England, which will support people in the cultural sector too. Plans for the second round of the levelling-up fund were confirmed, with at least £1.7 billion to be allocated to infrastructure projects around the UK before the end of the year. One of the themes for that fund is supporting cultural and heritage assets, which will give another important boost to the sector.

The noble Lord, Lord Leong, asked about text and data mining, and we recognise the concerns that the sector raised about this. My honourable friend Julia Lopez raised this with the IP Minister in the Department for Business, Energy and Industrial Strategy, who has agreed to engage further on the text and data mining exemption. We will consider all of the evidence before making a decision.

The noble Lord, Lord Foster, asked about creative clusters programmes. Since the last spending review, UKRI has announced more than £100 million of support for the creative industries to support innovation. The decision to fund creative clusters is made by UKRI, but I am keen to work with it to look at the results of the programme and other interventions to see what has worked and ought to be replicated.

So the Government recognise and appreciate that London is a leading cultural centre, with organisations that benefit not just the capital but the whole country and that are enjoyed the world over. But that is true of other towns and cities too: only last night, Veronica Ryan won the Turner Prize—I congratulate her—which was announced at Tate Liverpool. Next year, the eyes of the world will be on that city as it hosts the Eurovision Song Contest, inspiring people around the world about the power of music.

Through the Arts Council’s next investment portfolio, by increasing investment outside London, it will help to generate culture and creative opportunities for more people in places that have been underserved for too long. In doing so, it will help to redress an historic imbalance in arts funding. I firmly believe that that work, alongside the investments and other programmes that I outlined, can ensure that our world-class arts and culture can continue to thrive into the future.