Future of Financial Services

Jim Shannon Excerpts

Monday 9th November 2020 Commons Chamber

[Rishi Sunak]

What the financial services sector needs is a vision for the future that will ensure we remain the most competitive place to do financial services in the world, and the announcements that we have made today will ensure that that becomes a reality.

[Jim Shannon (Strangford) (DUP)]

Can I thank the Chancellor for his statement and for bringing very often to this Chamber some good news? He is absolutely right about the financial and professional services work outside London. In Belfast, there are some 24,000 jobs playing a very significant and key role. Therefore, all of the United Kingdom of Great Britain and Northern Ireland benefits. Bearing in mind the need for small and medium-sized enterprises to export their products and services to the global economy—and for that to happen and take place, financial services and banks must be regulated by the FCA in a more efficient way—could I ask the Chancellor to outline how this can be done and how it can be better achieved?

[Rishi Sunak]

I would point the hon. Gentleman to the phase 2 consultation that is currently outstanding of our future regulatory framework review. The key purpose of that review is to ensure that our regulatory regime, after we leave the transition period, is fit for purpose. It will take into account a wide range of inputs from stakeholders, and I would urge him and his small businesses to feed into it.

Financial Services Bill

Jim Shannon Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution & Ways and Means resolution: House of Commons
Monday 9th November 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

You almost caught me unawares, Madam Deputy Speaker—I thought that the hon. Member for Grantham and Stamford (Gareth Davies) would be about.

I broadly support what is in the Bill, but I have a couple of requests, as others have had. I want to make three specific points on the LIBOR transition, debt respite and the inadequate FCA regulatory framework for SME lending. I say, first, that it is a pleasure to see the Minister in his place. He is always very responsive to us all on the questions we ask him, and he always keeps a smile on his face—it is always something you do extremely well, even though the questions that we may put to you are hard and perhaps not always put in the way that they should be.

LIBOR, the London interbank offered rate, is an interest rate benchmark used to indicate banks’ costs of funding their activities: for example, the cost of obtaining money for a loan they will make. It has been used and continues to be used as a reference in hundreds of trillions of pounds-worth of financial contracts, so this is a very important issue. The former FCA chief executive officer and now Bank of England Governor, Andrew Bailey, said that after 2021 the FCA will no longer persuade or compel banks to submit the underlying data that goes to calculating LIBOR, causing concern that it could cease to exist. Minister, it is a really big issue for us all, and certainly one that people have contacted me about. There have been many loans in the past and that are still in force where banks have used LIBOR.

I understand that the existing powers on benchmarks granted to the FCA, passed under EU law and to form part of UK law from 2021, are seen as insufficient to ensure a smooth transition away from the use of LIBOR, so again, Minister, perhaps you can give me an answer on that. I welcome, among other things, clauses 8 to 19, which appear to grant the FCA greater powers to compel the continued publication of the benchmarks, to prohibit the use of benchmarks and to oversee the orderly wind-down of benchmarks. I hope that the new FCA chief executive officer will now deploy these powers at the earliest opportunity. Again, Minister, perhaps we will be able to get some indication of a timescale for that, if possible, to assure us on where we are.

I welcome the fact that the Government have made a commitment to Gibraltar. Others have referred to it and others will—it is certainly one of the issues that I am concerned about. This gives peace of mind to that sector and we thank you for that.

Can I, Minister, perhaps underline another issue—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Gentleman cannot say, “Can I, Minister—”. How many millions of times have I said this to the hon. Member for Strangford (Jim Shannon)—only usually, I do not, because there is no time and there is a lot going on? Here I have my opportunity: he has heard my request to him a hundred times to please address the Chair. He cannot say, “Minister, will you do this?” And even worse, when he is addressing the Prime Minister, he must not say, “Prime Minister, will you do this?” He has to say, “Will the Prime Minister do this?” and “Will the Minister do this?”—in the third person, not the second person, please.

[Jim Shannon]

I stand corrected, Madam Deputy Speaker, and I will use my best endeavours to do that. Sometimes I get carried away in the emotion of the debate—it is a very emotional debate, of course—and I find that maybe I do not use the correct words.

Will the Minister look at the issue of money laundering in Northern Ireland? I make that comment because in all the countries across the globe, and particularly in this United Kingdom of Great Britain and Northern Ireland, money laundering is one of the issues that concerns me greatly. We have had many cases of money laundering over the last while, and we have many cases in Northern Ireland where paramilitary groups are involved in clear money laundering activities, which are against the law. With the Bill coming forward, will the Minister be able to give an assurance on money laundering, particularly in Northern Ireland? What discussions have taken place with the regional Assembly and the Minister in the Northern Ireland Assembly with responsibility for policing and justice, and what has been the feedback from that? I think that if we are going to do this well, we have to ensure that contact is made with the regional devolved Administration and that there are discussions outside that, particularly with the Republic of Ireland. Many illegal things are taking place in respect of transport across the border in all places, but we must tackle the ability of paramilitary groups to actively use the border with this purpose in mind.

Secondly, on the debt respite scheme, will the Minister confirm that clause 32 will amend the Financial Guidance and Claims Act 2018 to empower the Government to make regulations that compel creditors to accept amended repayment terms; provide for a charging mechanism through which creditors will contribute to the costs of running the scheme and repayment plans; and include debts owed to a Government Department at any level, including the devolved Administrations, in the statutory debt repayment plan? Again, I make a plea for the Northern Ireland Assembly: what will be the position in relation to any debts that are due? When do the Government expect to bring forward the relevant regulations? What discussions have taken place with the devolved Administrations on the statutory debt repayment plan?

The Treasury will be aware that the Business Banking Resolution Service has to be part of an effective solution under this process. The Democratic Unionist party remains concerned that we are not on track to do that. While the income from financial services is notable, so is the responsibility not only to shareholders but to the Government. We must ensure that that obligation is understood completely by enforcing the BBRS within legislation.

Thirdly and lastly, I refer to the bank lending regulatory framework. I finish with this because I believe it is the most important point. I know that the Minister is fully aware of it from discussions with the DUP and others who have contacted him. I have been in contact with him regularly about this issue since he first spoke about it at the Dispatch Box in January 2019. Of course, I have also been in touch with the Chancellor over the past month. The Minister must agree that it is crucial for SMEs to have the opportunity to export their products and services to the global economy, and the support to do so. I believe that our financial services industry, and banks in particular, must be regulated by the FCA in a much more legally effective way under this Government. Minister, it is very important that we have the bite, so to speak. It is all very well having words, but we need the strength of legislation to govern the banks’ small business lending post-Brexit.

The Government must get this right. I know that they can and I know that there is a will to do so. It is important that the future legal and regulatory framework allows our SMEs to have confidence in the 21st century global economy. I believe we have an opportunity to get it right this time, and it is time to do just that.

Madam Deputy Speaker, I hope that is to your satisfaction. Thank you very much.

Small Breweries Relief

Jim Shannon Excerpts

Monday 9th November 2020 Commons Chamber

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr iawn, Ddirprwy Lefarydd.

I, like the vast majority of Members of this House, am proud to speak up for the excellent independent breweries of my constituency. These include inspiring beers from Cwrw Llŷn of Nefyn, Cader Ales in Dolgellau, and Porthmadog’s Mŵs Piws—which I imagine does not need translating as Purple Moose—as well as Myrddins Brewery and Distillery of Barmouth. Other bragdai bach of the county of Gwynedd include Bragdy Lleu in Penygroes, Snowdonia Brewery of Waunfawr, and Cwrw Ogwen in Bethesda.

This debate is not intended to be a language lesson, but I think Members will know the meaning of the words “cwrw” and “bragdy” when we have finished. The word “bragdy” is very similar to “brewery” because it is the same thing. “Cwrw” is an old Celtic word—Welsh word—meaning beer, but Members may recognise it from other places with words such as “cerveza”. There is a real pedigree to these words. I will not indulge myself any further, because given half a chance I will.

All in all, Wales is home to about 90 independent breweries. However, these small breweries have to hold their own against the global beer companies that dominate the pub handpulls, the bar taps and the supermarket shelves. The small breweries relief scheme was launched in 2002 to allow them to compete and to compensate for lack of market access. It gave independent breweries a fighting chance to get their beers out to a public thirsty to taste something new and different.

[Jim Shannon (Strangford) (DUP)]

I am very pleased to see how many people have arrived in the Chamber, so there is a common denominator that brings us together. I congratulate the right hon. Lady on bringing this debate forward; she does so well in doing so. With one in eight staff in the pubs and breweries industry already having been made redundant so far, does she agree that any relief scheme must include an extension of business rates holidays, with consequentials for the Northern Ireland Assembly and the other devolved Administrations to do the same, as with other areas? This must be extended to suppliers and to their business premises. These companies can continue to produce but have no market to sell to. There really needs to be something done, and we look to the Minister to give us the response that we are after.

[Liz Saville Roberts]

It is of course an honour to be intervened upon by the hon. Gentleman. I really appreciate his intervention, and I will touch on that matter further. In the time in which we find ourselves, our breweries have been affected as much as the pubs that have been closed, and the pubs have received considerably more support than the breweries in the difficult recent months.

Economy Update

Jim Shannon Excerpts

Thursday 5th November 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right. It is young people who are most impacted economically by the crisis we are experiencing, and she is absolutely right that they should be at the heart of our thinking about the recovery. The kickstart scheme is at the centre of that, providing fully funded job placements for at-risk young people. Tens of thousands are starting their jobs in the coming days and weeks, and we look forward to those young people having a new springboard into a bright career in her constituency and elsewhere.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for what he has said today. The equality for all the United Kingdom of Great Britain and Northern Ireland is good news. Whether we are in Edinburgh, Cardiff, London or Belfast, we are treated equally. In relation to the Northern Ireland Assembly, which has been in a circuit breaker for the past two weeks, the Chancellor has said that the help will go right through until March, but should it be needed beyond that, it will be important to have that in place. Can the Chancellor specifically tell me what support will be given to businesses that have recently been set up but are excluded from the financial support schemes and are under extreme pressure for their very survival? It is good to hear that the United Kingdom of Great Britain and Northern Ireland is being treated equally, but it is also good to have something for those small companies that have just been set up.

[Rishi Sunak]

I can confirm that all our job schemes work on a UK-wide basis, treating everyone equally wherever they live, and that will continue always to be the case. I am also pleased to confirm today a £400 million increase in the up-front funding guarantee for Barnett consequentials for Northern Ireland, bringing the total to £2.8 billion, and I am sure that the Northern Ireland Executive can use that funding to support businesses in the way that the hon. Member describes.

Lockdown: Economic Support

Jim Shannon Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

I absolutely support my hon. Friend in her desire to see those businesses able to bounce back, which obviously requires us to get the virus rate down. We recognise that restrictions have affected tourism and hospitality businesses in particular, which is why we have put in place additional support. We will continue to look at ways to support those industries, but the key to doing so is to reduce the rate of infection through the measures that the Prime Minister announced yesterday.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all that he has done; it is good to have the help.

Yesterday, the Prime Minister assured me that aid was coming to Northern Ireland businesses whose trade is affected by the lockdown here on the mainland. Will the Minister outline what form the aid will take for suppliers who have to cease operations? We should be ever mindful of the regional differences, with the Northern Ireland circuit break and tiers 1, 2 and 3 here on the mainland. On Thursday night, there will be a total lockdown here, whereas we will come out of the circuit break next week. What help will there be for businesses in Northern Ireland whose supplies travel across the water?

[Steve Barclay]

The hon. Gentleman is right to talk about the impact on businesses in Northern Ireland and part of that coming through its interconnectivity with the rest of the United Kingdom. As I said in an earlier answer, we will update the Northern Ireland Executive this week on the enhanced Barnett guarantee, but that unprecedented action taken to give an up-front guarantee will enable the Northern Ireland Executive to provide support to businesses. Of course, it will be for them to determine the exact scope of that business support.

Government Response to Covid-19

Jim Shannon Excerpts

Tuesday 3rd November 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for South Dorset (Richard Drax) for the opportunity to speak in this debate. I might have a slightly different focus in relation to where we are going.

As I said in the main Chamber last night, I am not a scientist, and I am certainly not a strategist. I understand my limitations in relation to covid-19, and I depend on others to keep me right about where we are. That allows me to accept that, during the first wave, the Government did what they could with the information they had, to fight the virus and the effect it had on this country. I am not going to cast any aspersions on the Government for that. I thank them and Ministers for all that they have done in a very difficult and trying time.

I also want to put on record my thanks to nurses and care workers, and I will make a plea, as the hon. Member for Coventry North West (Taiwo Owatemi) did, for the nurses. The Royal College of Nursing has contacted me, as it has contacted every MP, asking for a wage increase. I have told them I will support that; I have written to the Minister about it, and I want to make sure that that is in Hansard today.

We are now in a second wave, and we thankfully have more information. We have more knowledge and experience, and with the additional support comes an additional demand to get things right—as the Scripture says, to whom much is given, much is required. That being the case, the nation is watching and will hold us to a much higher standard. We have to get this right this time round.

I have lost a loved one very close to me. My wife’s mother died from covid-19 just two weeks ago. My sister-in-law was also getting oxygen. My wife’s aunt and uncle have both had it as well. I understand all too well the human aspect that is faced. I see the torment of those who cannot be with their loved ones at the end, who cannot choose the outfit and cannot have a normal funeral. Funerals are limited to 25 people, who then have to go home separately to their homes to grieve. The human cost is massive. What I suggest to everyone here—I say this honestly and respectfully—is to not underestimate the impact of covid-19 and the harm and the deaths that it brings. We all have to find a way to mitigate that as best as we can. Speaking personal, covid-19 is the most horrible, unfeeling and cruel disease. It robs families of their loved ones and their dignity.

However, the human loss in terms of the worst recession this nation has faced will be great too. There are cancer diagnoses missed by people who are afraid to go to the doctors. There is the inadequate funding that will come when budgets are slashed, which will mean that mental health services are lost. Every one of us is pleading for that focus on the national health. We see cutting-edge technology as a faraway dream, and we see all those things that are taken for granted—our welfare state—decimated due to decisions made in this House. The pressure to get it right is immense. Those who are on the minimum wage and those whose hours have been cut find themselves in a dire financial position. We cannot ignore these things—they are happening. We cannot ignore the self-employed, as the hon. Member for Wycombe (Mr Baker) said. We all know those people as well.

Local businesses in my area have gone all out to ensure that they mitigate what is happening as much as possible. I have seen small businesses taking such steps as supplying free masks at the door. Small businesses understand that the mortgage payment is due. Their ability to invest in stock is on the line, unless they do all they can to stop the spread. It is for those people that I ask the Government again to assess the transmission data, and pinpoint where transmission happens, rather than blanket banning all shops.

Christmas is the time when the local high street makes the money to keep it going for the year. We all know that, and I know it is true for the towns in my constituency. That all hangs in the balance—on a thread. There are also the hairdressers and barbers; the Government want to get the R rate down to 1, but they get it down to 0.02 and they are all closed. Why is that? Children can go to school—in Northern Ireland, they went back to school on Monday past, which is good news. I also make a plea for churches. People want to worship and pray together. I would like to know where the data is that says churches must close, because I am not quite sure it is there.

It is important that we are here to do our job. I wholeheartedly agree with the Leader of the House, but it is vital that shops can be open in a safe way to do their job. We must get that right and ensure that lockdown gives us time to get opening and safety measures right, so that we do not find ourselves in this situation again, with the spikes that we are told will happen, in February and the spring. Our economy and the future health of the nation simply cannot take it. How do we do it? We do it together. We deal with health and the economy together. We support our Government and our Minister to try to make that happen.

Covid-19: Economy Update

Jim Shannon Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

The hon. Lady asks for an extension of the job retention scheme. It is worth drawing her attention to the fact that the employer contribution to the job retention scheme in October is 20%, whereas under the new, more generous, job support scheme it has been reduced to 5%. That is more generous and will protect more jobs and more people’s livelihoods.

[Jim Shannon (Strangford) (DUP)]

I welcome the Chancellor’s commitment to helping the whole United Kingdom of Great Britain and Northern Ireland; we much value the money that has come forward. May I speak for the distribution sector, which daily delivers perishable foods not only to care homes, the NHS and schools, but to pubs, cafés and restaurants that are closed in tier 2 and 3 locations? The costs for distribution remain the same for jobs, vehicles and businesses. What help can those in the distribution sector access as a result of the Chancellor’s announcement?

[Rishi Sunak]

The hon. Gentleman makes an important point about the supply chains of those who serve the hospitality industry. I draw his attention to two things. The tier 2 grant programme that I announced today will contain a 5% discretionary top-up, which local authorities can use at their own discretion to support local businesses; they may choose to use some of it to address the needs that he outlines. Also, we have not targeted the enhanced generosity of the job support scheme purely at the hospitality industry, or indeed purely at businesses operating in tier 2 areas, because we recognise the complexity of the supply chains that he mentions. The very generous job support scheme will be available for all businesses in all parts of the country, regardless of sector, which I think will make an enormous difference to the businesses that he mentions.

Black History Month

Jim Shannon Excerpts

Tuesday 20th October 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

To be number 60 on the speaking list and to get in is quite an achievement, so thank you for the opportunity, Madam Deputy Speaker. I thank the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) for setting the scene and I thank hon. Members for some absolutely wonderful contributions, which I have been greatly heartened by.

As an Ulster Scot, I believe I am very much British to the core—as I think Margaret Thatcher said, I am more British than Finchley. I am hoping that that will be the case; we will know within the next few months whether that will be the case or not.

Our history as members of this great diverse UK— England, Scotland, Wales and Northern Ireland—is about instilling the belief that, regardless of differences in class, colour or culture, we are unified in our Britishness, which is only enhanced by our differences. I believe we are better together, but it is not just that—it is all the cultures coming together, to make this great nation, which we have the privilege to be part of.

I believe that black history is British history, in the same way that Ulster Scots history is British history. I commend the right hon. Member for Chipping Barnet (Theresa Villiers). She held an Adjournment debate one night on this very issue, and set the scene and the tone extremely well. There were also some wonderful contributions from other Members to that debate.

Martin Luther King is a hero of mine. He made some wonderful comments. He was a man of God and also a man who had a social conscience—a person who spoke up for other people. That always intrigued me. That is probably the reason why Dr Paisley, who formerly sat in this House, was a person with whom I resonated as a young boy in the late ’60s and early ’70s, as he spoke up for others.

Martin Luther King said that people should

“not be judged by the color of their skin but by the content of their character.”

That is a lesson that I believe every school should teach and that every single adult in this place must put into practice. Those words should be in the hearts of each and every one of us here. I think that is the message we want to send out from this place tonight.

I am very much a part of a shared history. I am very much from a Unionist tradition and an Orange culture. I belong to all of the loyalist organisations—the Orange Institution, the Royal Black Preceptory and the Apprentice Boys, but at school in the late ’60s and early ’70s in my class, one of the teachers said, “Would you like to learn Irish history?” The response from the class was, yes, we would. It did not change me as a Unionist and was never going to, because I am a deep Unionist through and through—it is in the core of my body—but it did give me a perspective on another history. It is important to have that perspective and to know about the Irish part of history that we have in our island. For me, the celebration of 12 July is not designed to detract from any other cultures.

The celebration of Black History Month is the opportunity to be grateful for the tremendous achievements of this section of the British people, including the Windrush generation, who have done so much to bring the UK to where it is—together. That black history is my history, too; I want to put that on record. I see black history as British history, along with my history as an Ulster Scot. I hope this debate will enable us all across this great United Kingdom of Great Britain and Northern Ireland to recognise that we are different, but that we are also the same, not just in the way we breathe and the blood in our bodies, but because we are British.

Productivity: Rural Areas

Jim Shannon Excerpts

Wednesday 14th October 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate you, Ms Ghani, on getting to the position that you are in. It is lovely to see you there and I wish you well. I thank the hon. Member for North Cornwall (Scott Mann) for setting the scene. I will talk about Brexit and the opportunities, because that is where I feel that we have those chances.

The dairy industry and connected agrifood industry is a massive rural key. One dairy corporate in my constituency in Northern Ireland has 2,500 farming families depending on it. We look forward to moving forward to continue trade and to enhance that. When it comes to productivity, Brexit will give us that opportunity. Mash Direct, Rich Sauces and Lakeland Dairies in my constituency have shown that global trade is possible, exporting as far away as China. That is something that the former Minister for International Development enabled us to develop.

To move forward, we need the Government centrally and the Minister to work with the Northern Ireland Assembly. They need to work alongside each other, to negotiate the choppy tides of leaving the EU, to hit the wide-open seas of free trade and commerce, and to reach the global potential that exists. In my farming constituency, it reaches down from the big companies, which between the three of them employ some 2,500 people, plus the farmers who live off them. Glastry Farm produces excellent ice cream. I said last night that Portavogie prawns are the best prawns in the country; well, Glastry Farm ice cream is the best ice cream that there is. It is a local farm that has diversified and done what it can to increase rural productivity.

I quickly underline the importance of post offices and banks, because of the wellbeing they provide. The hon. Member for Angus (Dave Doogan) is a member of a party—the Scots Nats—whose Members have spoken out in the House about bank closures many times. I have been in every debate; I want to make sure that is on the record.

I want to ensure that we address the issue of broadband, to reach out to isolated rural areas and to help small and medium-sized businesses, because if we can do that, we can raise productivity and we can all do better across the great United Kingdom of Great Britain and Northern Ireland.

Fiscal Support for Events Industry: Covid-19

Jim Shannon Excerpts

Tuesday 13th October 2020 Westminster Hall

[Owen Thompson (Midlothian) (SNP)]

I beg to move,

That this House has considered fiscal support for the events industry during the covid-19 outbreak.

It is a pleasure to serve under your chairmanship, Mr Davies. There are plenty of events happening these days, but unfortunately they are not the kind of events that we want. Ever-changing political events related to the global pandemic have devastatingly disrupted our ability to take part in the more fun kind of events and our ability to mix and gather safely. Usually, the UK has a truly world-beating, year-round programme of cultural activities: music, theatre, arts and outdoor festivals, as well as conferences, ceremonies and shows—events that happen thanks to the collective efforts of a diverse, trained and skilled workforce that employs around 1 million people. Those events bring us together, inspire us and lift our spirits. Sadly, since March 2020, the cultural map of events has been all but wiped out, and those events have been held only via computer screens. This vibrant sector has been brought to its knees.

I support the need to take action to tackle the increasing spread of the virus. Balancing public health against economic damage is clearly very tricky, although there is no single step more important than controlling the virus when it comes to getting things running again properly in the events sector. Not only are professionals in the events industry keen to follow the rules, but they could help to frame future solutions. The British Events Industry Coalition has members who have expertise in planning and running safe events of all shapes and sizes. They would be delighted to lend their health and safety knowledge and industry experience to help frame future regulation. They have innovative ideas, such as a formal BEIC safety kitemark system, by means of which events could demonstrate adherence to standards, boosting public confidence and getting people back through the gates when guidance allows. I hope that the Minister will be willing to work with industry on that, and I look forward to his response.

Last month, I asked the Prime Minister what to tell constituents in successful, viable businesses whose jobs rely on live events, and he said that it was better that they “get back into work”. I am sure that they would all agree; everyone in the events industry is itching to get back to doing what they are so brilliant at doing, and to pursue careers that they worked so hard to achieve. However, I have to say that the Prime Minister’s response was somewhat puzzling, given that my constituents still cannot do what they want under the Government’s restrictions, which either prevent events from running altogether or allow them merely to limp along in a financially unviable way.

Recently, the Chancellor made it clear what the Prime Minister meant by getting back into work: that people from all walks of life should retrain. To press that message, a Government-backed poster is doing the rounds featuring a young ballet dancer and rather gloomy text, which says that her next job could be in cyber but she does not know it yet. Forget the dedication, blood, sweat and tears and years of professional training for a career in the arts, and forget following passions—get stuck behind a computer. It is a worthy job, no doubt, but is that really the message we want to send to our aspiring young talent? Having tried unsuccessfully to get clarity from the Prime Minister on what he meant by “get back into work”, I hope the Minister can perhaps shed some light on this conundrum.

For those who are not sure what to retrain to do, the UK Government provided a handy quiz to help people find a suitable new career. It is a bit like one of those personality quizzes in glossy magazines that might be found in a dentist’s waiting room, and the results are equally ridiculous. On social media, I saw a choir conductor who was not too happy when advised to consider colon hydrotherapy as an alternative career. I had a go myself, and it suggested that I could perhaps be a football referee, although taking a second job that has something to do with football is clearly not something that a serious politician would consider—except, of course, the leader of the Scottish Conservatives, the hon. Member for Moray (Douglas Ross), who clearly has too much time on his hands. My hon. Friend the Member for Gordon (Richard Thomson) suggested to me yesterday that if the Prime Minister were to take the quiz, it might suggest that he retrain as a Prime Minister.

The UK Government’s response to the crisis faced by the events industry has been crass, to say the least. They showed a real lack of understanding of the value of the sector and the far-reaching consequences of letting these jobs simply vanish. These are skilled professionals in viable careers that form the backbone of the UK’s cultural and economic life. Why on earth would the Government give up on them?

[Jim Shannon (Strangford) (DUP)]

In my constituency, and in my council area of Ards and North Down, culture and the arts are vital. It is a core issue for the council, to promote jobs and help things go forward. Does the hon. Gentleman agree that, when it comes to events, whether in partnership with the National Trust or events companies, the council has a key role to play?

[Owen Thompson]

I absolutely agree. Local government across the islands plays a critical role in making sure events can take place, and in supporting events—particularly community events, which I will come to later.

It may be that, as some have suggested—I could never be so cruel as to do so—those in the Treasury do not actually value the arts, but they must surely respect the billions of pounds the arts bring into the coffers. If they do not understand the value of that income, perhaps they need to take the retraining website quiz themselves. Let us consider outdoor events alone. I thank the incredible volunteers at the “We Make Events” campaign for compiling the figures. Across the UK, 141.5 million people attended outdoor events in 2018, spending £39.5 billion and supporting 589,000 jobs, with a gross value added of £30.4 billion.

We are very good at running events. In these challenging times, we need to look at what we are good at, to support, encourage and protect those jobs. The great thing about this massive economic generator is that it is the opposite of London-centric. It meets the Government’s proclaimed levelling-up agenda and it provides jobs right across these isles, no more so than in my Midlothian constituency, which not only has a proud tradition of community events and gala days, but is home to many businesses and freelancers who work in the world’s most fabulous and famous global events right on our doorstep in Edinburgh.

In Scotland, prior to the pandemic, the creative industry was among the fastest growing sectors, supporting around £9 billion worth of activity in the Scottish economy. With its contribution growing by 62% from 2008 to 2017, across the UK the creative industries were growing at five times the rate of the economy as a whole, contributing £111.7 billion in gross value added, and creating jobs at three times the rate of the UK average in all parts of the country.

These businesses are not just viable; they are essential to the UK’s growth and recovery from the crisis. Culture and events are not frivolous add-ons, or optional luxuries when other more serious jobs are taken care of. They are central to our heritage, happiness and mental health—part of what it means to be a human being. This crisis has surely shown us just how valuable the arts are in creating resilient communities. Hard times have been eased by music, art and creativity, as people look for ways to come together virtually, while we cannot do it face to face.

Nobody in the sector is simply sitting back holding out for handouts. They want to work. Businesses are innovating and finding ways to adapt, and people are taking jobs wherever they can find them to survive. Performers are looking for platforms to share their talent in innovative ways, such as “Stars in their Homes”—run by a constituent of mine—in which performers take to Facebook at the weekend to bring a bit of joy into homes across the country. The fact remains, however, that all sorts of skilled professionals dependent on live events have been left in the cold with very little support: people in staging, lighting, security, audio-visual technology, sound engineers, promoters, planners, hospitality suppliers, photographers, florists, technology manufacturers—the list goes on. All of that is before we get into the associated hospitality links and benefits, but given the time constraints, that is perhaps one for another day.

The decision on what is viable seems to me utterly misguided. There are so many examples of successful businesses, such as the audio-visual technology specialists in my constituency, VisionEvents, which were operating a booming business at the top of their game internationally before covid-19 cut their legs out from under them. These are creative, self-sufficient companies doing fantastic work to adapt to virtual events, but there are limits and constraints on the income gap that can be covered virtually in the absence of live events.

There is and always will be a demand for events, but if we allow these jobs to be lost now, it will be very difficult to pick up again where we left off and we will lose the competitive advantage that the UK currently enjoys. The Minister will no doubt draw attention to the job support scheme extension, albeit limited, and the fiscal support for the arts. That is welcome; I make no bones about that. There are clearly details still to come, but the question remains whether that goes far enough to protect the industry and support those on the brink. These funds may help venues and organisations to plan and adapt, but huge networks of individuals and support services, such as those in the hire and supply sector, are making huge losses every day.

Sadly, so far the announcement does not look like it will stave off mass redundancies. Crucially, it still misses all those freelancers who fell through the gaps in the job retention and self-employed support schemes. An estimated 3 million people have been excluded, many in the arts, in jobs that do not quite fit the spreadsheets—Excel or not. Individuals who lost their income overnight could lose their home or be left to struggle in poverty if they are not given support until the sector can get back on its feet.

No doubt the Minister will point to the £1.5 billion culture recovery fund. That is essential and will be crucial for much of the infrastructure and keeping many venues alive, but a comparison with the billions that the arts generates each year really puts it into perspective. Also, it does little for boots on the ground. As the We Make Events survey that was published today shows, the vast majority in the live events sector do not benefit from the fund. I understand it is not fully allocated yet, so I hope the Government will consider extending its remit to cover the full range of the live events supply chain.

Like the furlough replacement, the fund appears to be targeted at regional lockdowns. Sadly, it will not reach many of the businesses that we have discussed today. The Chancellor famously said he will do whatever it takes, but he is falling short when it comes to the live events sector and the specific challenges that need to be addressed. I invite the Minister to commit to a meeting with industry representatives from the We Make Events campaign, which would be more than happy to work with him to find a solution to help the industry move forward. It has set out its asks that are vital to the sector in a way that will work, and it has a realistic financial plan supported by the CBI. Its campaign, like the industry itself, is a global leader, having spread to 28 countries around the world. Are we going to let such expertise wither as other countries recognise the need for support, or can we actually recognise the benefits that the arts and culture bring to society?