Football Governance Bill
Lucy Frazer ExcerptsTuesday 23rd April 2024
(3 days, 5 hours ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
I beg to move, That the Bill be read a Second time.
Football is part of our national life. Over the years, English football has become a universal language. Wherever you are, whatever country you are in, you are never far away from a fan of one of our great clubs. We are a global football powerhouse and our economy benefits: billions for the economy, investment in towns and cities across the country, and tens of thousands of jobs. Our premier league is world leading. And the strength of our national game goes far beyond the top tier. Hundreds of thousands of fans turn out every week and come together to support teams up and down the football pyramid. Football clubs are at the heart of our communities. Each and every Member will be able to testify to that. Each Member will also be able to testify to the fact that we have the best fans in the world.
Unfortunately, too many of those very same fans have been taken for granted. Too many fans have seen their team’s owners change club badges and colours without any fan input, or have seen their club sell its stadium and up sticks. Too many fans have watched on as their clubs tried to join closed-shop breakaway leagues against their wishes. And too many fans have seen their club struggle and even collapse under the weight of mismanagement and poor ownership. There have been 64 instances of clubs falling into administration since the Premier League was founded in 1992. Clearly, not all clubs are feeling the benefits of English football’s global success and something has to change.
We all want to see our national game prosper for generations to come, but if we want our clubs to thrive, fans have to be at their heart. If we want English football to remain a global success story, we have to ensure our pyramid is financially sustainable. I am proud to say that the Football Governance Bill will do exactly that.
Sir Jeremy Wright (Kenilworth and Southam) (Con)
I congratulate my right hon. and learned Friend on bringing forward this Bill. As she says, football goes all the way down the football pyramid—not just in terms of its quality, but in terms of the entertainment it offers. Does she agree that a classic example of that is the fantastic entertainment that Coventry City provided in the FA cup semi-final on Sunday? Despite the club temporarily not being part of the premier league, it is none the less clear not just to the Coventry City supporters in my constituency but to everyone that the financial health of clubs that are further down the football pyramid matters for the entertainment they can provide. Does she agree?
Lucy Frazer
My right hon. and learned Friend is absolutely right: that was a tremendous match. It shows the importance of the football pyramid, and how it delights and disappoints fans across the country to see clubs go up and down.
Mr Toby Perkins (Chesterfield) (Lab)
I thank the Government for bringing forward this overdue Bill. Chesterfield has seen the worst of football, with the former owner Darren Brown ending up in jail for his crimes against the club, which almost took it out of existence. Under the ownership of the Chesterfield FC Trust, Chesterfield are now back where they belong—in the football league—after becoming champions of the national league this year. Is it not the case that what our football clubs really need is to be run by people with a commitment to those clubs and a passion for them, rather than by people who are trying to make a quick bob?
Lucy Frazer
To address the point about the Bill being long overdue, the Labour party said for some time that it would do something about this issue but did absolutely nothing. Since I have been Secretary of State, we have had a White Paper and a response to it, and we have drafted a Bill at speed. We have introduced the Bill, and I am delighted that it is having its Second Reading today. I recognise that the Labour party supports the Bill, and I am very grateful for its collaboration. I am very pleased that Chesterfield are in a good place. We want to see ownership that works across the field.
Steve Brine (Winchester) (Con)
I am very proud that our Government are bringing forward this Bill. Others had opportunities to do so but did not, and it is very important. I shall support its Second Reading tonight, because it is important to protect the football pyramid. The Bill talks about guaranteeing that fans will be consulted on key decisions that impact on them, which it will do in one respect, but fans of teams lower down the pyramid will be affected by the decision last week to get rid of FA cup replays, which are a lifeline for many clubs by providing opportunities to get a big draw at Anfield, Old Trafford or even Tottenham Hotspur Stadium. Obviously this Bill will not touch on that, but does the Secretary of State have any comments on this issue?
Lucy Frazer
My hon. Friend is absolutely right, because those David and Goliath fixtures are part of the magic of football. I know that replays have been a welcome source of income for smaller clubs throughout the years. I spoke to the FA about this issue at Wembley on Saturday, but as he will know, these are decisions for the football authorities. This Bill will ensure that we have appropriate financial regulation in place.
Valerie Vaz (Walsall South) (Lab)
I am not going to mention my local football clubs—oh, all right, I will: Walsall football club and Darlaston Town 1874 FC, which is celebrating its 150th anniversary. The shape of the Bill at the minute is due to the Minister sitting next to the Secretary of State, the right hon. Member for Pudsey (Stuart Andrew), who has engaged with all Members. I pay tribute to him for including all of us. It is a pity that the Secretary of State is looking at the Bill in a party political way, because the Government have been in power for the last 14 years. Let us all pay tribute to the right hon. Member for Pudsey, who has done a fantastic job.
Lucy Frazer
In the next part of my speech, I am going to pay tribute to a large number of Members who have played a considerable part. My right hon. Friend the Member for Pudsey (Stuart Andrew) has done a tremendous amount, as have many Members from across the House, but I pay particular tribute to my hon. Friend the Member for Chatham and Aylesford (Dame Tracey Crouch), without whom we would not be in this position today.
I was responding to a point about the delay. Those on the Opposition Benches might criticise us for the delay, but the truth of the matter is that they cannot legitimately do so, because they had an opportunity to take action and failed to take it. That is why we have taken the action that we have.
I agree with the right hon. Member for Walsall South (Valerie Vaz) that we should recognise that many people have played a considerable part in bringing this Bill to fruition, because many people have championed these reforms. I would like to mention again my hon. Friend the Member for Chatham and Aylesford, who was recently awarded a damehood. Her voice and her work have been instrumental in getting us to where we are today. As well as being chair of the fan-led review, she has helped lay the foundation. She has worked very closely with me, and in particular with my right hon. Friend the Member for Pudsey, to make sure that this Bill is in the shape that it is as it comes before the House today.
My hon. Friend the Member for Gosport (Dame Caroline Dinenage), who is Chair of the Culture, Media and Sport Committee, has worked with us in Government throughout the development of this Bill. My hon. Friend the Member for Carlisle (John Stevenson) has been a powerful voice in this debate and pressed hard, along with other members of the Northern Research Group, to change the status quo. I would also like to recognise the hon. Member for Bristol West (Thangam Debbonaire), who is my opposite number, and the hon. Member for Barnsley East (Stephanie Peacock), both of whom have been engaged throughout. I know that they are supportive of the ambition behind introducing a new regulator.
Particular thanks should be extended to my hon. Friend the Member for Southend West (Anna Firth), the hon. Member for Reading East (Matt Rodda), my hon. Friends the Members for Hyndburn (Sara Britcliffe) and for Folkestone and Hythe (Damian Collins), my right hon. Friend the Member for Ashford (Damian Green), the hon. Member for Eltham (Clive Efford), the right hon. Member for Walsall South, the hon. Members for Sheffield South East (Mr Betts), for Liverpool, West Derby (Ian Byrne), for Nottingham East (Nadia Whittome) and for Gateshead (Ian Mearns), and many others in this House.
I also thank the relevant all-party parliamentary groups, the football authorities, the Football Supporters Association, the FA, the Premier League and the EFL. Everybody has played their part in making sure that this Bill is in the shape that it is as we bring it forward today. Everybody knows it takes a village to develop a Bill of this size and scope, and credit is due to parties across the House, across football, across academia and across business. Hundreds of people have given us their time and their insight to help get the regulator right, and for that I am extremely grateful.
As Members will know, the centrepiece of this Bill is a new, independent regulator with a clear and unambiguous purpose: to protect the game that we all love. The way to do that is by getting football’s house in order. To that end, the regulator will not interfere with matters on the pitch. Instead, it will be focused tightly on governance, finances, ownership and fans. It will help clubs to build their resilience, while preventing teams from falling into the wrong hands to begin with.
Paul Bristow (Peterborough) (Con)
The mighty Bristol Street Motors trophy winners, Peterborough United, contacted me today to express their support for this Bill, but they suggested that it is vital that the independent regulator has the powers and the ability to intervene on financial model arrangements. Can the Secretary of State guarantee that the independent regulator will have those powers?
Lucy Frazer
The regulator will have significant powers in relation to individual clubs and, when triggered by either the Premier League or the EFL, to the leagues themselves. It will have backstop powers in order to look at the pyramid as a whole.
Kirsten Oswald (East Renfrewshire) (SNP)
I am always delighted to hear conversations about football taking place here or anywhere else. The Secretary of State talks about clubs getting their house in order. Does she agree that an important part of that would involve clubs looking at who their shirt sponsors are? Does she agree that shirt sponsorship by disposable vape companies is wholly unacceptable, has no part in modern football, and sets a really bad example to all our children? We want them to love the game that matters so much to all of us.
Lucy Frazer
I am sure that over the course of this debate many Members will raise issues of concern to them and their constituents. I emphasise that the Bill is about financial regulation, although I am very pleased that the Premier League has taken action on gambling advertising on the front of shirts, which is something we looked at very closely, and that the Government are taking action on vaping and smoking more broadly. The Bill is tightly defined and addresses financial regulation, and I am very pleased that we have introduced this legislation.
Dr Luke Evans (Bosworth) (Con)
The Secretary of State is exactly right about the financial aspects of this Bill, but we have to make sure that we get the balance right. We do not want to kill the golden goose that is the Premier League, and we want to make sure that we have growth in the sport, through the championship and the EFL. We have to consider the crowded calendar of European matches, too. Does she believe that the regulator will have the ability to chart that very fine line between UEFA, FIFA and her proposal? That is going to be pretty tough.
Lucy Frazer
We do not want to do anything that damages the world-leading Premier League, which is worth £7 billion. People across the world look to the Premier League, and we have worked very closely with the Premier League, the EFL and others to try to get the balance right. I have met the executives extensively during this period, and I have met all the clubs in the Premier League and the EFL to try to get the balance right. We are trying to get a light-touch regime that allows the leagues to do what they are already doing, but with a regulator. The Bill is all about financial regulation.
Bill Esterson (Sefton Central) (Lab)
The Secretary of State will understand that many of my constituents who support Everton are greatly concerned about the eight point deduction applied by the Premier League for breaches of its profit and financial sustainability rules. Nottingham Forest face a two point deduction for similar breaches, and other clubs have yet to face any sanction.
Can the Secretary of State reassure my constituents and many other football fans that her commitment to support the Premier League does not mean that the Bill will not have sufficient strength? Does she share my concern that my constituents and many others are worried about a lack of transparency, consistency and fairness in the case of Everton and other clubs? Will she give reassurance on that point?
Lucy Frazer
As I am making clear, the Bill is about financial regulation. I know that many fans are concerned about issues within the game itself. The Bill will not regulate how football is played, which is a matter for the footballing authorities. This is about ensuring that clubs up and down the pyramid are financially sustainable under a regulator. If no deal is agreed on distributions, the regulator can step in. This will protect the pyramid overall.
Clive Efford (Eltham) (Lab)
I am grateful to the Secretary of State for mentioning me earlier. Does she accept that one of the biggest drivers of financial stability is the parachute payments in the championship? Does she think it is a flaw that the Bill excludes parachute payments from the regulator’s powers?
Lucy Frazer
We understand that parachute payments have a role to play. There is provision in the Bill to deal with parachute payments, but that provision relates to the consideration on a club-by-club basis in the licensing regime itself.
James Wild (North West Norfolk) (Con)
When clubs like Norwich City are promoted to the Premier League, those parachute payments give them the confidence to invest, which drives competition in football. Are they not a good thing that we should be supporting?
Lucy Frazer
We believe that parachute payments have a role to play, although I know people have concerns about distortion. Under the Bill, if there is any issue relating to the finances of a particular club, particularly by reference to the parachute payments it might have received, the regulator has an ability to look at that within the licensing regime as a whole.
Mr Clive Betts (Sheffield South East) (Lab)
I have read the Bill, but I wonder whether the Secretary of State has read it. Under clause 55(2)(b), the regulator is not allowed to deal with
“revenue that the specified competition organiser distributes to a club by virtue of a team operated by the club being relegated from a competition organised by the specified competition organiser.”
In other words, parachute payments are deliberately excluded from the remit of the regulator. Why has that been done when it is one of the most distortive elements of the current arrangements?
Lucy Frazer
I have been very intimately involved in this Bill, having put together all the policy recommendations and had discussions with all the parties. I encourage the hon. Member to read all aspects of the Bill, not just the provisions in relation to the backstop, which he quoted. I know many Members feel that parachute payments are very important, so let me try to explain again.
I know that many stakeholders have concerns about the impact of parachute payments on financial stability, sustainability and resilience, and I know that parachute payments can play an important role in softening the financial blow of relegation at all levels of the football pyramid. Given the complexity of the issue, the regulator will need to undertake an holistic, evidence-based assessment of the system of financial distributions as part of its state of the game report, and this will include an assessment of parachute payments.
Parachute payments have been specifically excluded from the backstop mechanism to ensure that the two final proposals from the Premier League and the EFL are easily comparable. The impact of parachute payments on financial sustainability and resilience could be a relevant factor in both the decision to trigger the backstop and the final choice in relation to a proposal. More generally, the regulator can look at the impact of a parachute payment on a particular club when it comes to the licensing regime.
Lucy Frazer
I will press on, as I have now answered five times on parachute payments.
We will achieve our goal through the new licensing regime, under which all clubs in the top five tiers of English men’s football will need a licence to operate as professional football clubs. The regulator will have powers to monitor and enforce requirements on financial regulation, club ownership, fan engagement and club heritage protection, as well as setting a corporate governance code of practice and having the power to prohibit clubs from joining breakaway competitions.
Dr Luke Evans
It is fantastic that the top five leagues will have to have a licence. Will the Secretary of State comment on the resources that will be necessary to put that in place for the season? This is a big undertaking, and considerable resources will be needed to monitor what is going on.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I know that some colleagues who are intervening might not be seeking to catch my eye later. I remind colleagues that if they do intervene, it is customary for them to stay for the entire speech.
Lucy Frazer
The Government are very conscious of the impact on clubs, which is why we are giving them time to prepare for the measures we are bringing into play.
On top of the new licensing system, the regulator will introduce a new strengthened owners and directors test to make sure that a club’s custodians are suitable, and to protect fans from irresponsible owners. This responds directly to growing concerns about financial mismanagement in football, particularly illicit finance, as well as to fans fighting back against owners at clubs like Blackpool and Charlton Athletic. The regulator will also bring in new, robust financial regulation to improve the financial resilience of clubs across the football pyramid.
As members of this House will be all too aware, a lack of financial resilience is one of the key risks to clubs’ futures. Giving the regulator powers to oversee financial plans and to step in to require clubs to beef up their financial resilience, where it has concerns, will prevent clubs from facing cliff-edge situations like we recently saw at Southend United. That will not mean that all clubs have to break even. We know that striving for success can come at a cost and that this ambition makes the game so exciting, so we welcome sustainable, sensible investment. What we cannot have is reckless overspending, irresponsible risk taking and inadequate funding. That is why the regulator will look at each club’s plans and how they are funded, and ensure that clubs have the resources to manage their risk taking. No longer can we have short-term actions jeopardising a club’s long-term sustainability.
Ashley Dalton (West Lancashire) (Lab)
The Secretary of State has mentioned fan engagement a couple of times. Fans increasingly feel as though they are not being listened to by their clubs. The fan-led review, which she has also referred to, made a series of recommendations in 2021 to give fans a real say in how their clubs are run. Will she be clear as to how the Bill will ensure that clubs are effectively and properly engaging with their fans and that fans’ voices are not being ignored?
Lucy Frazer
The Bill identifies a number of things that we know are important to fans, including heritage assets such as the colour of shirts, badges and the location of a club’s stadium. We know that those are the things fans care about. The Bill ensures a proportionate approach, because we know that engagement with different fans at different clubs, which have very different measures in place, will require us to take a proportionate, case-by-case approach. The regulator must ensure a level of engagement with fans, particularly on the issues that I am identifying, but we also want to ensure that it works for the clubs. Therefore, it will be for the regulator to ensure that a proportionate approach is taken.
I was about to go on to discuss that aspect, because we will be setting a minimum standard of fan engagement, and requiring clubs to seek the approval of their fans for changes to those things I mentioned in order to comply with the strong existing protection for club names. We know that most clubs have a strong relationship with their fans, consciously engaging them in decisions about the club’s heritage. However, there have been some notable exceptions, as we have seen at Cardiff City and Hull City, whose fans have had to battle to bring back or keep their club’s colours, badge and name.
As I said, the regulator will also protect fan interests with the requirement for clubs to seek its approval for any sale or relocation of their home ground. The stadium a club plays in is not only of significant value to fans; it can be the club’s most valuable asset, and it is only right that a club seeking to relocate has to demonstrate that such a move would not significantly harm the heritage of the club.
Damian Collins (Folkestone and Hythe) (Con)
The regulator is asked to balance the financial sustainability of the club with heritage concerns and to make an either/or decision, under its purposes. In that scenario, could the regulator decide to allow a club to move if it felt it was best for the club’s future sustainability, even if the fans objected?
Lucy Frazer
Yes, that is right; the regulator has to take into account the views of fans and look at the proposals. If it considers the proposals to be good, that change can take place.
Under the new regulator, fans will no longer face the prospect of seeing their club signing up to ill-thought-out proposals, such as the European super league, which several Premier League clubs tried to join in 2021. The House was united in recognising that those proposals for the new competition were fundamentally uncompetitive and would have undermined the football pyramid, against the wishes of fans. This regulator will prevent that kind of closed-shop league from ever getting off the ground.
Andy Slaughter (Hammersmith) (Lab)
I respect what the Secretary of State is trying to do, but there is a huge inequality of arms between billionaire owners of clubs and fans’ organisations. I have been the MP for Queens Park Rangers for nearly 20 years, but my small borough also contains Chelsea and Fulham, and in my political lifetime all three of those clubs have faced either being folded up by greedy owners or losing their ground in perpetuity. I do not see what in the Bill is going to prevent that from happening in the future.
Lucy Frazer
All the measures in the Bill, cumulatively, will ensure that clubs are well managed and run; therefore, they will be there and will not go into financial insolvency and administration, which decimates communities. All the measures we have set out, be it the owners and directors test, or the measures to ensure that clubs have a financial plan, will ensure that clubs are properly run. We are introducing the Bill to ensure that the situation whereby we have had 64 administrations since the Premier League was founded in 1992 is not continued. We are not saying that clubs are never going to get into financial difficulty, but we are saying that we are going to put a strong framework in place to ensure that all constituents can be confident that their clubs will have a certain level to which their business is run—that they will be run well.
John Cryer (Leyton and Wanstead) (Lab)
Leyton Orient, in my constituency, with which the Secretary of State is familiar, now have owners who are genuinely dedicated to their welfare. Previously, they were owned by somebody on whom the fit and proper person test had no effect, and that person nearly destroyed the second oldest club in London. Is she confident that the Bill will ensure that such people will not get their hands on clubs such as Orient in the future?
Lucy Frazer
Yes. This Bill is all about ensuring that the owners and directors of clubs are fit and proper people, so that what happened to the hon. Gentleman’s club, which I was at just a few weeks ago, does not happen again.
Mr Robin Walker (Worcester) (Con)
I will support this legislation because many of the steps it takes are very necessary. I hope it will mean that Worcester City will never leave Worcester again. Much of what I am hearing about the need to protect the financial sustainability of clubs and leagues also applies in the smaller but still important world of rugby union. As the Secretary of State will know, and as the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), who is sitting next to her, knows very well, Worcester Warriors are currently without a place in professional rugby. If this legislation succeeds, will she consider applying it to other sports, or introducing legislation for other sports, where that is required to sustain opportunities in the professional game?
Lucy Frazer
As my hon. Friend knows, the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), and I have spent time looking at the issues in rugby, and continue to do so. We are setting out what we hope will be a strong financial framework for football. This is being watched closely by other countries that are looking into what they will do in football. Of course if other sports want to look into this, they can.
I move on to the backstop power. Obviously, broadcast revenue is a hugely important source of income for clubs up and down our top-tier football leagues, but the current distribution of revenue across the top five divisions is not sufficient, and football has not been able to come to a suitable new arrangement. Not only does that contribute to problems of financial sustainability, but it can have a destabilising effect on the sport. To avoid that in future, the regulator will have new, targeted backstop powers to help ensure a sufficient flow of money. However, those powers are intended only as a last resort, and can be triggered only if certain conditions are met. The backstop mechanism has been designed with the industry and leading experts to give football incentives to reach a timely compromise, thereby delivering the right outcomes while minimising costly regulatory involvement.
The final part of the regulator’s job is improving the corporate governance of clubs. We will establish a football club corporate governance code, and will require clubs to report regularly on their corporate governance, setting out how they have applied the code and why that is suitable for their circumstances.
Damian Collins
The language in the Bill reflects the language on corporate governance in the Companies Act 2006, but there “corporate governance” includes the relationship that a board of directors has with not only the component parts of the business, but the employees. Should it not be inherent in the Bill that the corporate governance code should suggest how clubs can maintain high player welfare standards?
Lucy Frazer
We looked closely at precedents elsewhere, particularly in regulatory fields, when forming the basis of the Bill. We have always been conscious that we are regulating in a commercial space, and that football clubs are businesses. The premier league is world leading. We are regulating because football clubs have failed to solve these issues themselves. What we do not want to do through this Bill is over-regulate, including in areas in which we would not be regulating but for this Bill. We are trying to strike the right balance. That is why the Bill, notwithstanding questions that have been put to me in this House, focuses on financial regulation. Importantly, it does not interfere with the game, or with how players are looked after. The leagues have a role to play, and they should be primarily responsible for running the game.
Valerie Vaz
Do the regulators have sufficient power to intervene if some of the owners are servicing debts in other areas of their company?
Lucy Frazer
The regulator will have strong powers to look at owners and directors tests, and at financial plans. They will have powers that are designed to ensure the financial sustainability of football. The question that would arise, I suspect, in the right hon. Member’s case is whether that issue was interfering with a particular football club.
Kevin Brennan (Cardiff West) (Lab)
The Secretary of State is being very generous with her time. I thank her for mentioning Cardiff City. I hope to catch Madam Deputy Speaker’s eye later and talk some more about them.
One reason why the Government regulate in the commercial space and in business is to promote competition. In the White Paper, the Government said that the scale of parachute payments can distort competition in the championship and encourage greater financial risk-taking by clubs not in receipt of them. If the regulator has no power in this sphere, how will we ensure that the pyramid is a reality, rather than it becoming ever more difficult to climb?
Lucy Frazer
I recognise the concerns raised about parachute payments and the distortion of competition. On the backstop powers, parachute payments have been included because of the way that the backstop mechanism works; two offers are made by the Premier League or by the English Football League. However, that is not to say that parachute payments are completely ignored. The regulator will look at the state of the game in a holistic way. Also, it is not to say that if the parachute payments affect the running and finances of a club, the regulator has no ability to look at those payments.
Robin Millar (Aberconwy) (Con)
The Secretary of State said something very important about looking at precedents for regulation in other areas. Certainly, one reason why I am in the Chamber today is my love of the game; although I recognise that there are financial matters that need regulation, that is not the whole of the issue. My concern, and that of many of my constituents, is about the matter being treated simplistically, as if there was just one set of financially related problems, without consideration for community ties, the involvement of fans and so on. When she looked at other examples, did she find anything that managed to crack that nut, or that captured that nuance?
Lucy Frazer
There does not need to be a nuance. The whole point of this legislation is to protect fans, communities and clubs. At the heart of that is making sure that clubs are financially sustainable. None the less, in the legislation, we also have measures to ensure fan engagement on the things that fans care deeply about—the heritage, for example. I cannot overstate the point that although we want to protect the premier league, which is an important, world-leading asset, we also want to protect fans and communities, and that is what this legislation is all about. Taken together, the new measures and the carefully considered remit of the regulator will help us to safeguard clubs, protect the interests of our fans and avoid unnecessary and excessive regulation.
The vast majority of our clubs are run well and live within their means. I am confident that those clubs and their owners will recognise that the Bill, and the new regulator, will allow us to put football on a solid basis for years to come. The Bill will preserve and enhance all the things that we love about our national game, and I commend it to the House.
Oral Answers to Questions
Lucy Frazer Excerpts(1 week, 1 day ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Getting people active is absolutely vital, particularly those who are not active at the moment, which will include those from low-income families. That is why we have a sport strategy to get 3.5 million people more active. It is why we are investing around £400 million in grassroots sports facilities up and down the country, including £4 million in Newcastle upon Tyne Central. We are ensuring that that money is targeted particularly on the most deprived neighbourhoods.
Chi Onwurah
I hope the Secretary of State will join me in congratulating Newcastle United women on their promotion to the championship. This season, they have helped inspire more than 300 young girls to take part in Newcastle United Foundation’s Premier League Kicks sessions, but with a third of young people in Newcastle inactive and our childhood obesity rates the highest in the region and among the highest in the country, we cannot leave it all to the foundation. How frequently does the Secretary of State meet the Department for Education to ensure that disadvantaged young people have access to sporting opportunities in schools? Specifically, what comparison has she made between sporting facilities in the state and private school sectors?
Lucy Frazer
This is a really important area, and I congratulate the Newcastle United women on their success and, indeed, all women taking part in sport. That is why, through the future Lionesses fund, we have invested £30 million for 30 pitches across the country to make sure that women get more activity and more opportunities to take part in sport. The specific question was about engagement with the Department for Education, which I have regularly. In fact, it sits on the taskforce I was talking about to get more people active, as do other Departments. We all need to work together to make sure we get more sport in school, more people active and equal opportunities for young girls in schools across the country.
Thangam Debbonaire (Bristol West) (Lab)
More than 1 million girls who considered themselves sporty while at primary school drop out of sport as teenagers. I was one of those girls, and I did not do any sport from puberty until my late 40s, when I discovered running. This weekend, I will be running my second London marathon in aid of Bristol Refugee Rights—feel free to donate. On this Government’s watch, inequality between girls and boys on physical activity has got worse, with 22% fewer girls than boys taking part in team sports. I do not want any tepid words about things the Secretary of State says she is committed to. We have 860,000 girls missing out on the joy of physical activity—why?
Lucy Frazer
I hope the shadow Secretary of State does very well on Sunday, and I wish her the best of luck. I am absolutely committed—these are not just warm words—to ensuring that more girls and women get involved in sport. I say that they are not just warm words because we have a plethora of policies already in play on this issue, whether that is: investing in football and working with Karen Carney on her women’s football review; building pitches to ensure that girls and women have priority access to sport; the £400 million for multi-sport facilities, which goes across the country; or the taskforce that I talked about, which will get 1 million children more active. We are particularly prioritising people who are inactive at the moment, which unfortunately does include girls.
Andy Carter (Warrington South) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Between 2021 and 2025, the Government have committed more than £325 million to grassroots sports sites across the whole of the UK. That is part of our commitment to ensure every community has the facilities it needs. So far, almost 2,400 sites have been supported, creating more opportunities for people of all backgrounds across the country to get active.
Virginia Crosbie
Thanks to the UK Government’s multi-sport grassroots facilities programme, almost £100,000 has been invested across Anglesey to improve sports facilities at Holyhead Hotspur, Plas Arthur in Llangefni, Tŷ Croes and Bodedern. Sport helps families across Ynys Môn be more active, healthier and happier. Will the Secretary of State join me in thanking Ynys Môn gymnastics club, Barton Dance and Drama Academy, Ynys Môn Celts basketball club and all those working hard to make my summer activities fair at the Canolfan Holyhead on 8 June a success?
Lucy Frazer
It is fantastic to hear about the community events taking place in the hon. Friend’s constituency. I am delighted that she has put together such an active and exciting event, and I wish her all the best on 8 June. Such events bring communities together. I wish her and everybody a wonderful time.
Andy Carter
Cromwell Athletic, who play at Mary Ann Meadows in my constituency, have had to cancel almost 70% of their grass pitch games this season because conditions have made the ground simply unplayable. The pitch improvement programme shows that we need around eight 3G pitches in Warrington to cope with demand. Could my right hon. Friend set out what support is available to clubs with significant junior membership? I invite her back to Warrington to see some of the teams who are struggling to access 3G pitches, to talk about how we can help them.
Lucy Frazer
Through our investment via the Football Foundation in England, we are actively supporting teams such as Cromwell Athletic up and down the country to get new artificial grass pitches. We funded the goalposts at Barrow Hall Primary School and put in a new artificial grass pitch at Cardinal Newman Catholic High School. It was a pleasure to visit my hon. Friend’s constituency, and I would be happy to meet him to discuss this issue further.
Andrew Rosindell (Romford) (Con)
Dr Luke Evans (Bosworth) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
As my hon. Friend will know, the Football Governance Bill was introduced to Parliament last month, and it will help with the financial sustainability of football as a whole. I have met the Premier League, the English Football League, many stakeholders and parliamentarians to ensure that the legislation is appropriately drafted. I have met over 90 clubs and senior executives from the leagues many times.
Dr Evans
I am grateful to the Secretary of State for that answer. We do not have to look too far across the east midlands to see that clubs such as Nottingham Forest, Derby County, Coventry City and Leicester City have found themselves in some form of difficulty, so I welcome the Government’s plans to introduce a regulator to bring some stability to the football pyramid. However, how do we ensure that we strike a balance so that we do not strangle and over-regulate the best league in the world, the premiership?
Lucy Frazer
As my hon. Friend mentions, the Premier League is world leading. It is worth £7 billion, and we absolutely want to ensure that it stays first and world class. That is why the legislation takes a proportionate approach. It takes on board the fact that the regulator will have to work very closely with the leagues, including the Premier League. We call it an advocacy-first approach, and having worked very carefully with the team, I am very confident that the legislation takes a balanced and proportionate approach.
Dan Jarvis (Barnsley Central) (Lab)
Football is nothing without the fans, and the Secretary of State may recall that a while ago I mentioned to the Sport Minister the idea of a postponement promise. That was in response to a spate of fixtures that had been cancelled at very short notice. The Minister said that he would raise it with the EFL, and I understand that he did so. I am grateful for that, but I wonder whether the Secretary of State agrees that we need to keep the momentum going forward. Will she and the Minister continue to work with the EFL to come up with a solution that works for fans?
Lucy Frazer
The hon. Member is absolutely right about the importance of fans and communities to football, which is why the Government are bringing forward legislation to protect fans across the country. My junior Minister is a valued colleague who supports me and works very hard across his portfolio. I know he has raised this issue with the EFL, and I will talk to him about it.
Alex Davies-Jones (Pontypridd) (Lab)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
This Government recognise just how important the arts are, which is why the Chancellor used the Budget to extend, introduce and make permanent a range of tax reliefs to drive growth and investment in our creative industries. We have provided tax reliefs worth £1 billion over the next five years for museums, galleries, theatres, orchestras, independent film productions, film studios and the visual effects industry. In addition, as Sunday draws near, I want to wish all those running and taking part in the London marathon the best of luck—in particular, the shadow Secretary of State, the hon. Member for Bristol West (Thangam Debbonaire).
Alex Davies-Jones
With Monday marking the 35th anniversary of the Hillsborough tragedy, we will always remember the 97 victims who were killed unlawfully. Does the Minister agree that, in their memory, we must take a stand against those who think it is acceptable to ridicule this disaster in order to rile up rival teams? If so, what is she doing to tackle this issue of so-called tragedy chanting?
Lucy Frazer
Tragedy chanting is absolutely abhorrent and has no place in football, or indeed in any sport. The Government fully support the football leagues and the police in their efforts to identify and deal with the culprits. Tragedy chanting can be prosecuted as a public order offence, with guilty individuals being issued with football banning orders preventing them from attending matches in the future.
Andrew Rosindell (Romford) (Con)
Lucy Frazer
First, I extend my congratulations to Romford football club on reaching the final of the FA vase—it is a wonderful achievement and I wish the team the best of luck at Wembley. On the issue of BBC Essex, as my hon. Friend will know, the BBC is operationally and editorially independent of the Government, but I know that my hon. Friend has raised his concerns directly with the BBC, and I am sure that it will get back to him.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the SNP spokesman, John Nicolson.
John Nicolson (Ochil and South Perthshire) (SNP)
Since we last met, the media regulator Ofcom has again reprimanded GB News for breaching impartiality rules. Ofcom says that news programmes should not be presented by politicians. The Tory Benches host a plethora of Ofcom rule-breaching MPs who leave this place to freelance as pretendy news presenters on a channel that spreads conspiracy theories and disinformation, and that undermines Ofcom. I am on the side of journalism, not disinformation. Does the Minister agree with me that GB News should drop the propaganda and obey the regulator?
Lucy Frazer
I am in favour of media plurality; I think it is important that there are channels for everybody to watch, and GB News is a very popular outlet. I think that the person to regulate GB News is Ofcom, not those on the shadow Benches.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
Crewe Amateur Musicals Society opens what I am sure will be a fantastic production of “Kinky Boots” at Crewe Lyceum this evening, but I am concerned that Arts Council funding does not do enough to support existing groups and activities. As well as joining me in wishing the Crewe Amateur Musicals Society good luck this evening, can my right hon. Friend meet me to discuss Arts Council funding?
Richard Fuller (North East Bedfordshire) (Con)
The Secretary of State will be aware of the proposal by Universal Studios for a theme park in Bedfordshire—a £10 billion investment in the country. She will also be aware of the strong local support, led by Conservative Mayor Tom Wootton, so can she assure me and other Bedfordshire MPs that she is working hard with the Treasury to get a response to that proposal, and that a Government proposal will be forthcoming before the summer?
Lucy Frazer
My hon. Friend is right to raise this very exciting opportunity for Bedfordshire, which I am pleased to have discussed with him. We are liaising closely with the Treasury, and I am also happy to continue liaising with my hon. Friend.
Patrick Grady (Glasgow North) (SNP)
Lucy Frazer
I am very pleased to congratulate Portsmouth football club on its success. My hon. Friend is absolutely right to highlight the importance of local clubs and what they do in their communities. It is not just the match on a Saturday; it is also about what they do to encourage people to get involved in their community and to get fit and active. Going around the country, I have seen some fabulous examples of what sports clubs—not just football but rugby and cricket—do for their local areas.
Liz Twist (Blaydon) (Lab)
Lucy Frazer
I am pleased to have spoken to Karen Carney on a number of occasions about her review and the importance of women’s football, and I am also pleased to take on board all her recommendations. The Government approved all the review’s recommendations, and I am pleased to chair the first implementation group, which is ensuring that the recommendations will be implemented by the Football Association and others.
Pete Wishart (Perth and North Perthshire) (SNP)
Since I last raised the closure of small music venues, two a week continue to close. There is now a growing consensus within the live music sector that a £1 levy should be put on large music venues and those who are making massive profits at live events. The Culture, Media and Sport Committee is looking at this, and I have listened very carefully to the evidence. If it is recommended, will the Minister put in place a levy similar to the one in other countries across Europe?
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The “Space Investigators” exhibition at the Great North Museum celebrates the amazing history of the north-east in designing and manufacturing telescopes. What support does the Minister offer so that regions such as ours can better understand and promote our great industrial heritage?
Lucy Frazer
I am pleased that work has been going on in the hon. Lady’s constituency on these important matters. Of course, through Arts Council funding and through Department for Culture, Media and Sport funding, we support institutions across the country that support the history of, and what is going on in, their local communities, as well as arts across the country.
Christine Jardine (Edinburgh West) (LD)
This is the 900th anniversary of the founding of Edinburgh city and St Giles’ cathedral. Celebrations are planned to mark it, so will the Minister tell us whether the Department is going to be working with the devolved Administration and supporting the local council in celebrating that anniversary? And would she like to come and join the party?
Telegraph Media Group: Anticipated Acquisition
Lucy Frazer Excerpts(1 month ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
On 19 March, I confirmed to Parliament that, on the basis of assessments by the Competition and Markets Authority and by Ofcom, I am minded to refer the anticipated acquisition of Telegraph Media Group Ltd by RB Investco Ltd to a phase 2 investigation on the grounds of the need for accurate presentation of news and free expression of opinion in newspapers.
I set a deadline of 9 am on Monday 25 March 2024 to allow the parties the opportunity to make representations to me before I reach a final decision.
Further to a request from one of the parties, I have confirmed an extension to that deadline, which will now be 9 am on Tuesday 2 April 2024.
[HCWS374]
Telegraph Media Group Ltd: Acquisition
Lucy Frazer Excerpts(1 month, 1 week ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
On 26 January 2024, I issued a public interest intervention notice (PIIN) in relation to the anticipated acquisition of Telegraph Media Group Ltd (TMG) by RB Investco Ltd on the grounds of the need for accurate presentation of news and free expression in newspapers.
The PIIN triggered a requirement for Ofcom to report by 11 March on the media public interest considerations and the Competition and Markets Authority (CMA) on jurisdiction and competition issues. I issued a statement on 12 March to confirm that I had received those reports and undertook to set out my “minded to” decision on the next step in this process: whether or not to refer the merger to a fuller phase 2 investigation.
On the basis of the regulators’ assessments, I can now confirm that I am minded to refer this merger to a phase 2 investigation on the grounds of the need for accurate presentation of news and free expression of newspapers.
The CMA has found that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; a finding that is a prerequisite for me to be able to refer this matter for a further investigation at all. However, it does not believe that it is or may be the case that this merger has resulted, or may be expected to result, in substantial lessening of competition within a market or markets in the United Kingdom for goods or services.
Ofcom has found that it is or may be the case that the potential merger situation may be expected to operate against the public interest, having regard to the specified public interest considerations. In particular, it considers that International Media Investments (IMI), a majority partner in RB Investco’s parent company, may have the incentive to influence TMG in a way that could potentially act against the public interest in the UK by influencing the accurate presentation of news and free expression of opinion in The Daily Telegraph and The Sunday Telegraph newspapers.
I will be publishing both the CMA and Ofcom reports in due course, copies of which will be deposited in the Library of both Houses. I will also publish the letters to both parties setting out my “minded to” decision.
I am now required by legislation to allow the parties the opportunity to make representations to me before I reach a final decision. I have given them until 9 am on 25 March 2024 to respond.
I will aim to make a further statement on any decision I may come to as quickly as possible.
The pre-emptive action order I issued on 29 January 2024 will continue to apply to the merging parties and related entities until a final decision has been taken on matters described in the January PIIN.
In the meantime, given the ongoing quasi-judicial nature of this process, I am unable to comment substantively on the matter of this case.
I had also issued a PIIN on 30 November 2023 in relation to the anticipated acquisition of Telegraph Media Group Ltd by RedBird IMI, which was then RB Investco’s parent company.
The CMA has found that arrangements as described in the November PIIN are no longer in progress or in contemplation. I accept the CMA’s findings on this matter and this PIIN now ceases to be in force.
[HCWS357]
Arts Council England: Public Body Review
Lucy Frazer Excerpts(1 month, 1 week ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Today we are announcing that the second stage of the public body review into Arts Council England is under way.
The public bodies review programme delivers against the commitments made in the “Declaration on Government Reform” to increase both the effectiveness of public bodies and departmental sponsorship, making Government and public bodies work better in service of the public. Public body reviews will be underpinned by broad minimum requirements covering efficiency, efficacy, accountability, and governance. The review will follow guidance published in April 2022 by the Cabinet Office: “Guidance on the undertaking of Reviews of Public Bodies”.
Arts Council England is an executive non-departmental public body, and was established by Royal Charter in 1946. It is one of the Government’s primary vehicles to support the arts and creativity in England. Its role encompasses funding and investment, research, support and advice to the sector, and partnership promotion.
The Government are proud of the work they have undertaken with Arts Council England, providing increased investment in arts and culture through its most recent funding portfolio, and spreading opportunity across the country to a record number of organisations.
The Department has agreed to commence a full-scale review into Arts Council England, and Dame Mary Archer has been appointed as the independent lead reviewer. She will work with a review team composed of officials from the Department and an advisory board of people with a range of experience in the arts and culture, detailed below.
Dave Moutrey (Chair)
Sir Damon Buffini
David Butcher
Tony Butler
Leila D’Aronville
Nathaniel Hepburn MBE
Baroness McIntosh of Hudnall
Sir Simon Robey
Gurvinder Sandher MBE DL
Professor Katy Shaw
Sarah Staniforth CBE
Jo Verrent
Dr Sharon Watson MBE DL
Sue Williamson MBE
The terms of reference for the review have been drafted following consultation between the lead reviewer, the Department and Arts Council England, and the review will broadly look at the following areas:
Arts Council England’s delivery model and whether it is correct to deliver effective outcomes for the public;
Arts Council England’s grant monitoring procedures and overall efficiency;
Arts Council England’s statutory functions;
Departmental sponsorship; and
Arts Council England’s accountability to the Department, respecting the importance of the arm’s length principle and the Arts Council's responsibility as custodians of public money. In conducting the review, officials will engage with a broad range of interested parties in the arts and creative sectors across the UK.
As set out by the Cabinet Office guidance, the review will report to the Government, and the Government will publish the conclusions of the review and any Departmental response in due course.
[HCWS347]
Telegraph Media Group: Anticipated Acquisition Reports
Lucy Frazer Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Today I can confirm that I have received reports from the Competition and Markets Authority (CMA) and from Ofcom on merger situations involving Telegraph Media Group Ltd (TMG). These reports were provided in response to the public interest intervention notices (PIINs) that I issued in the anticipated acquisition of TMG by RedBird IMI on 30 November 2023 and RB Investco Ltd on 26 January 2024 respectively.
The PIINs required the CMA to report to me on my jurisdiction to intervene in these merger situations, and if any competition concerns may arise as a consequence. They also required Ofcom to assess and report to me on the need for accurate presentation of news and free expression of opinion in newspapers.
Next, I will decide, in a quasi-judicial capacity, whether or not I am minded to refer this merger for a further investigation by the CMA.
I will aim to publish the CMA and Ofcom reports and make a further statement on any decision I may come to as quickly as possible.
In the meantime, given the ongoing quasi-judicial nature of this process, I am unable to comment substantively on the matter of this case.
[HCWS334]
Budget Resolutions
Lucy Frazer Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
Since 2020, our economy, like those across the globe, has been challenged by a pandemic, a war in Ukraine and the spiralling cost of energy in the aftermath of Putin’s illegal invasion of Ukraine. We have seen very difficult times for households up and down the country, but despite the most challenging economic headwinds in modern history, since 2010 our growth has been higher than every large European economy. Economic growth underpins jobs, it underpins household budgets and it underpins living standards. Having stabilised the public finances and delivered certainty to markets, my right hon. Friend the Chancellor of the Exchequer last week set out a plan that will ensure more investment, more jobs and better public services.
Today, I will set out how the Budget continues to support many of the sectors I am proud to represent at the Department for Culture, Media and Sport, particularly the creative industries, which the Chancellor last year identified as one of our five priority sectors of growth. The creative industries do not just enrich our lives; they enrich the nation’s finances, and they are an economic powerhouse. These industries are growing at twice the rate of the rest of the economy. They are responsible for over 2 million jobs, and they were worth £124 billion to our economy last year alone.
I start by just recognising the UK’s world-leading success in these industries. Netflix, Amazon Prime, Apple and Disney all want to expand their footprint here and to add “Made in Britain” labels to their productions. “Barbie”, the highest grossing film of 2023, was made not in LA, but just down the road in Leavesden, which I was delighted to visit recently with my hon. Friend the Member for Watford (Dean Russell). Companies such as Warner Bros are choosing Hertfordshire over Hollywood, and that production alone contributed £80 million to our economy and supported nearly 700 jobs. We have also seen huge success in the indie film sector, with films such as “Rye Lane” and “Scrapper”.
This success is down to huge innate British talent, hard work, skills and creative excellence across the country, but it has not happened by accident. Conservative Governments have been supporting and stimulating our creative industries with tax reliefs for over a decade. From film to animation, video games and theatre, these tax reliefs have helped to attract significant global investment into the UK. Every year since 2012, we have introduced tax reliefs to support investment and create jobs—tax reliefs that the Labour party voted against every single time.
Alex Sobel (Leeds North West) (Lab/Co-op)
The Secretary of State talks about a number of productions and studios, all of which are in the south of England. What support will the Government give to ensure that we have post-production and production facilities in the north of England—for instance, by matching Mayor Tracy Brabin’s ambition to have a studio in West Yorkshire?
Lucy Frazer
The Government are supporting creativity across the country. In June, I announced £50 million, which we know from experience will leverage £250 million of investment, for creative clusters across the UK. Only recently, I was at Aviva Studios in Manchester. The £100 million invested in Manchester is the biggest investment since the Tate Modern. The hon. Member will have heard in the Chancellor’s statement about the significant investment in Teesside, particularly in the creative industries.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
But the Tories have truly wrecked the nation’s public finances. Under the Conservatives, debt has tripled from £1 trillion to almost £2.6 trillion. Does the Secretary of State agree that according to respected independent statistics, despite the Chancellor’s Budget, households in Slough and across our country will be £870 worse off on average under the Chancellor’s tax plan?
Lucy Frazer
The Chancellor’s tax plan is allowing people across the country to benefit from around £900 if they are an average earner, and we know that every time the Labour party leaves office there is higher unemployment. Last time the Labour party was in government, it left a note that said there was “no money left”.
Let me tell the House what impact the Conservative plan has delivered over the last decade. As I said, there have been tax reliefs in every Budget over the past 10 years, and every time they were voted down by the Labour party. The impact of that year-on-year investment is clear. Statistics show that more than 1 million jobs in the creative industries have been created since 2010. There has been almost a doubling of the economic value of creative industries to more than £124 billion since 2010, with exports up 210% in that time. Recently published figures confirm that the sector has grown by more than 10% since the pandemic. The Conservative party is powering one of our world-leading industries.
Mr Toby Perkins (Chesterfield) (Lab)
The Minister is talking about the state of the nation’s finances in 2010, and at that point we had a national debt of £1 trillion. We now have a national debt of £2.6 trillion. Does she think that the Conservatives have sorted out the nation’s debt when it is now almost three times higher than it was?
Lucy Frazer
I hope the hon. Gentleman was listening when the Chancellor delivered his Budget. He highlighted that debt will be reducing next year, with the Office for Budget Responsibility forecasting that we will meet our fiscal rule to have debt falling as a share of the economy.
George Freeman (Mid Norfolk) (Con)
It merits recording that the debt figure we are dealing with comes from a £500 billion bail-out of the banks under Gordon Brown, £375 billion of quantitative easing, £70 billion of Brexit relief, £400 billion of pandemic relief, and £40 billion of cost of living relief. That is a significant injection of money by this Government, and the previous one, to help people through tough times.
Lucy Frazer
My hon. Friend, as always, makes an excellent point. It is difficult to forget how this Government, and the Prime Minister when he was Chancellor, supported the livelihoods and economies of people up and down the country. In the creative industries alone, a covid recovery fund of £1.57 billion went to ensure that those industries continued to survive. The International Monetary Fund and others said that that was the fastest and most effective package coming out of covid.
Jim Shannon (Strangford) (DUP)
I welcome what the Government are doing for the creative industries in Northern Ireland. The Northern Ireland film sector has been growing leaps and bounds over the past few years. The extra help that the Government are putting forward for creative industries in Northern Ireland will undoubtedly create more jobs and a boost for the economy. I welcome what the Secretary of State is putting forward. Now that the Northern Ireland Assembly is up and running again, can contact be made with the relevant Minister to see how we can grow the industry even more?
Lucy Frazer
I am delighted that the Northern Ireland Executive are up and running, and keen to continue engagement with them to ensure that we continue to boost the economy in Northern Ireland.
Our creative industries are not just life enhancing and entertaining, and they are not just part of our personal and national identities; they are an economic powerhouse that is dominating the world stage. In the past year, we have built on the huge success of the decade of investment that I spoke about with an industry-led sector vision that sets out a plan to unlock £50 billion of growth, 1 million more jobs and a pipeline of talent by 2030. Both the Chancellor and the Prime Minister recognise that the way we will extend our excellence long into the future is with sustained investment and commitment to those sectors. That is why the Budget that the Chancellor set out last week continued that support and built on that recognition with a package of measures to cement our status as a cultural superpower.
Members should not just take my word for it. The reliefs announced represent a
“once-in-a-generation transformational change that will ensure Britain remains the global capital of creativity”,
according to Lord Lloyd Webber. They include
“the most significant policy intervention since the 1990s”,
according to Ben Roberts, the chief executive of the British Film Institute. They are “game changing” according to “James Bond” producer Barbara Broccoli. Those people are all correct.
There will be £1 billion in additional tax relief for the creative industries over the next five years. We have set permanent high rates of cultural tax relief: of 45% for touring and 40% for non-touring theatre productions and gallery exhibitions, and of 45% for all orchestra productions. There is a new 53% tax credit for UK independent films with budgets of under £15 million, a 40% tax relief on business rates for film studios, and an increased tax relief for the visual effects sector. There is £26.4 million for the National Theatre to modernise its stages and new funding for an extension of the National Film and Television School.
The funding and tax breaks will unlock huge investment in our economy, secure the long-term future of some of our great cultural institutions and help us build a pipeline of talent for the future. We are only five days on from the Budget and the measures are paying dividends already. Later this year, the filming of “Jurassic World 4” will begin at Sky’s Elstree studios. As Sir William Sargent, chief executive of the visual effects company Framestore, said, it is likely that our decision to remove the 80% cap on what productions can claim on visual effects has stopped the visual effects for “Jurassic World 4” from being made abroad. That is our long-term plan for growth, and it is delivering growth within days of the Budget.
However, our ambitions rightly stretch far beyond our world-class creative industries. At the last autumn statement, the Chancellor unveiled 119 growth measures which, taken together, could raise business investment by around £20 billion per year in a decade’s time. He has followed that up with a Budget designed to deliver an economic gear shift for businesses across different industries—from life sciences, to manufacturing, to AI.
There is over £270 million of combined Government and industry investment into cutting-edge automotive and aerospace R&D projects. There are grants of £92 million of joint Government and industry investment into the life sciences and up to £100 million in the Alan Turing Institute, our national institute for AI and data science, over the next five years. There are strategic investments designed to unlock growth and propel our economy forward. These long-term decisions will place us at the vanguard of these pioneering industries of the future, where we belong.
The Government recognise how hard the last few years have been on people’s and families’ finances. That is why the Prime Minister set five clear and unambiguous priorities, consistent with those of people across the country who have battled with the rising cost of living. The Prime Minister, the Chancellor and the entire Cabinet have been laser focused on those priorities, and we have made significant progress in delivering on them.
Mr Dhesi
The Secretary of State speaks about tax reliefs and long-term decisions, but thanks to this Government we now have the highest tax burden since the second world war. Will she confirm the Office for National Statistics figures showing seven consecutive quarters of falls in GDP per capita since 2022? Does she agree that that is the longest period of stagnation since the 1950s?
Lucy Frazer
The hon. Member makes a number of points. On taxes, we are sticking with the plan, which is to get taxes down. We are doing that by yet again reducing national insurance contributions. There are reductions for 29 million people and tax cuts for 27 million working people from April. He mentioned the tax-to-GDP ratio, where the UK tax system remains competitive: we have a lower tax-to-GDP ratio than any other European country in the G7. Germany’s is at 39.3%, France’s is at 46.1% and Italy’s is at 42.9%, based on 2022 figures.
Sir Edward Leigh (Gainsborough) (Con)
On tax cutting, there has always been a social contract in this country by which people pay national insurance until they become of pensionable age, and then they do not pay national insurance. Therefore, cuts in national insurance do not help pensioners, and in particular aspiring pensioners, who have put something aside. What I would like to know from the Secretary of State—I see alongside her the Exchequer Secretary to the Treasury, who said this change might take decades—is what is the long-term plan to protect pensioners? National insurance cannot just be abolished and replaced with nothing. It can only be replaced with higher tax, from which pensioners do not benefit.
Lucy Frazer
My right hon. Friend knows that we want to reduce taxes on working people. It is not right that they have double taxation. He will also know about the importance of protecting pensioners, which is why, throughout our time in government, we have protected them, with one of the key ways of doing that being through the triple lock.
I will highlight the progress made on the five priorities that the Chancellor and the Prime Minister set out some time ago. Debt is falling in line with our fiscal rules, inflation has halved and growth is a full 1.5 percentage points higher than predicted. That has only been possible because of the decisions taken by this Government, such as putting an average of £900 back into the pockets of 27 million workers in the space of four months. There is further to go, and the Budget will help us get there, creating more success stories like our creative industries across our economy and across the entire United Kingdom.
While the Labour party snipes aimlessly and endlessly from the sidelines, we are targeting funding where it is needed most. While the Labour party talks the economy and indeed the rest of the country down, we are backing working families and British businesses with tax cuts and tax breaks. While the Labour party U-turns on its U-turns, we are putting our economy on track for new jobs, new growth and new investment. The Conservative Government have a plan, and that plan is working. I commend the Budget to the House.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the shadow Health and Social Care Secretary.
Leveson Inquiry: Variation Notice
Lucy Frazer Excerpts(1 month, 3 weeks ago)
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The Secretary of State for Culture, Media and Sport (Lucy Frazer)
This is a joint statement with the Secretary of State for the Home Department.
As Ministers with joint responsibility for the Leveson inquiry into the culture, practices and ethics of the press, today, under section 20(7) of the Inquiries Act 2005, we have decided to vary the final restriction order (FRO) issued by Sir Brian Leveson on 29 November 2012. This variation, at the requests of the claimants, will allow documentation provided to the Leveson inquiry to be disclosed for the purposes of the legal proceedings following the claims brought against Associated Newspapers Ltd by Baroness Lawrence of Clarendon, Elizabeth Hurley, Sir Elton John, David Furnish, Sir Simon Hughes, Prince Harry, the Duke of Sussex and Sadie Frost Law.
The following documents will therefore be disclosed for the purposes of the legal proceedings:
Daily Mail ledger cards recording payments to private investigators.
The Mail on Sunday ledger cards recording payments to private investigators.
We do not consider that it is necessary in the public interest to withhold these documents from any disclosure or publication and have decided to vary the FRO so as to allow the disclosure of these documents solely for the purposes of the proceedings. In this case, in our judgment, the public interest in promoting the just, speedy and economic resolution of the proceedings outweighs the countervailing public interests.
A variation notice has been shared with the parties to the legal proceedings, and published on gov.uk.
This decision makes no comment on the merits of the proceedings, which is wholly a matter for the courts to determine.
[HCWS303]
Oral Answers to Questions
Lucy Frazer Excerpts(2 months ago)
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Rob Butler (Aylesbury) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
The BBC is a hugely valued institution, and the mid-term review seeks to ensure that it continues to provide an outstanding service by improving its processes in relation to both impartiality and complaints. I regularly meet the BBC’s chair and director-general, and I will continue to use those meetings to raise these important issues.
Rob Butler
I started my career as a BBC reporter, and I firmly believe in the importance of our national broadcaster being both independent, particularly at moments and eras such as this, and completely impartial. However, every year, many people complain that the BBC is not as impartial as it should be, even that it is biased, and the BBC then dismisses the vast majority of those complaints. Does my right hon. and learned Friend think that the public would perhaps have more confidence in how those complaints are investigated if they were investigated independently from the outset?
Lucy Frazer
My hon. Friend is absolutely right. The public rightly expect the BBC to be an exemplar of impartiality. Our review highlighted issues in relation to both impartiality and complaints. As a result, the BBC will undertake significant reforms on both impartiality and complaints. At the charter review, as I have already said, we will examine whether the BBC first process remains the right complaints model.
Kevin Brennan (Cardiff West) (Lab)
My innate lack of deference has probably not got me far in this place over the past 22 years, but it is good to see you in your rightful place this morning, Mr Speaker.
The BBC is a great British institution, as the Secretary of State says. In considering the mid-term review, will she reflect on the importance, in this era of fake news, biased comment and social media, of having a space in which information and news are presented impartially and in accordance with editorial guidelines? The BBC is criticised from the left and the right, which probably reflects the fact that it generally gets things right.
Lucy Frazer
The hon. Gentleman is absolutely right that the BBC plays a critical role. It is extremely trusted not only here but across the world. The BBC is an important institution, which is why it is so important that it remains impartial. I know that the director-general agrees and, like me, thinks there is more to do. That is why, in the mid-term review, we set out things that the BBC continues to need to look at. The BBC agrees with our mid-term review and has accepted all our recommendations.
Selaine Saxby (North Devon) (Con)
Dame Caroline Dinenage (Gosport) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
I recognise the enormous potential of AI, but also its risks. I have had extensive engagement with the creative sector on these issues, including a series of roundtable talks on AI with, among others, media, music and film representatives. I am now working closely with the Secretary of State for Science, Innovation and Technology on a programme of further engagement with the sector.
Dame Caroline Dinenage
I thank the Secretary of State for that answer, but creators across the creative industries are concerned about AI developers, some of whom are worth as much as $100 billion, using their works without consent and without compensation. The inability of the Government’s working group to agree a code of practice on AI and intellectual property fuels concerns that the status quo is working only for the developers. This will be a growing problem. If a voluntary code is not going to be possible, how will the Government and her Department in particular ensure that creators will be paid fairly when their work is exploited?
Lucy Frazer
I understand this issue and the concerns that my hon. Friend has mentioned. I know that, as Chair of the Culture, Media and Sport Committee, she understands and appreciates these matters. I want to assure her that the conclusion of the initial public offering working group is absolutely not the end of our work to find an appropriate regulatory solution for AI. We are absolutely committed to ensuring that AI development supports rather than undermines human creativity. For example, we will be focusing on ensuring greater transparency from AI developers and that AI outputs are properly attributed. It is also right, as she highlights, that creators should be compensated for their work.
Allan Dorans (Ayr, Carrick and Cumnock) (SNP)
Good morning, Mr Speaker. AI firms are committing large-scale abuse of copyrighted material, using copyrighted images and pieces of media to train their AI tools without consent or compensation for copyright owners. The United Kingdom Government say that they want to reduce barriers to AI companies, but that can only come at the expense of creators and artists. How does it make sense to sacrifice the 10% of UK GDP that comes from the creative sector in favour of less than a quarter of a per cent of GDP that AI produces?
Lucy Frazer
I recognise the point that the hon. Member makes in relation to the importance of protecting creative rights—the creative ingenuity that is such an important part of both our British culture and economic value. That is why I am hearing from the sector, and why, in the Government’s AI White Paper, we recognise the importance of ensuring greater transparency from AI developers. We are continuing to work on that across Government.
Sir Chris Bryant (Rhondda) (Lab)
I am sorry, but the Government’s answer to the Chair of the Culture, Media and Sport Committee was a load of hot air that could have been written by ChatGPT, except ChatGPT would have done a better job of it. The truth of the matter is that the Government’s flagship on AI as it relates to creative industries, which is meant to be protecting the moral and economic rights of artists, musicians, and authors, while at the same time recognising the important advances that AI can bring, has sunk. Last June, the Secretary of State said that if the code of practice was not achieved, legislation could be considered. So, in the words of Paul Simon, when is she going to make a new plan, Stan?
Lucy Frazer
I would just point out that the Labour party has said absolutely nothing in relation to what it would do, so to stand up here and say that we have no plan is absolutely unacceptable. I can be absolutely clear that we do have a plan. We have worked very hard with the sectors. We have already set out in our White Paper the steps that we are taking on a very important aspect in relation to transparency. I will continue to work with the sector on all these areas to ensure that this extremely complex matter comes to a satisfactory conclusion for the creative industries.
Kim Leadbeater (Batley and Spen) (Lab)
Peter Aldous (Waveney) (Con)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
The Government have committed over £325 million to multi-sport grassroots sites across the whole of the UK. This is part of our mission to ensure that every community has the pitches and facilities it needs. So far, 2,300 sites have been supported. That includes funding for grass pitch maintenance at Waveney football club in my hon. Friend’s constituency, creating many more opportunities for people of all backgrounds to get active.
Peter Aldous
The development of multi-sport grassroots facilities is very often led by one sport, which then faces a variety of obstacles in getting other sports authorities to participate in a particular project. What steps is my right hon. and learned Friend taking to remove those barriers, and to promote collaboration between different sports authorities so that much-needed facilities can be built?
Lucy Frazer
I welcome my hon. Friend’s question because it allows me to champion the fact that, as a requirement of the Government’s investment in grassroots facilities, 40% of projects need to clearly benefit a sport other than football, such as cricket, rugby, basketball or netball. In England, the Football Foundation and Sport England work closely with the national governing bodies of other sports to encourage the development of multi-sport projects, to promote collaboration between clubs at a local level.
Wera Hobhouse (Bath) (LD)
Over 1 million girls lose interest in sports when they become teenagers, mainly due to lack of confidence and feeling judged, but we know how beneficial sports are for mental health, and there are many other benefits. How has the Department included gender in the implementation of the multi-sport grassroots facilities programme?
Lucy Frazer
I welcome that question. We have a national sports strategy to get 3.5 million people more active. That is focused on trying to get those who are currently inactive into sport. As the hon. Lady rightly mentions, women and girls are less active in sport than boys and men, so we are focusing in particular on that, with a national taskforce that brings together all relevant Departments and national governing bodies to ensure that we get more women and girls involved in sport across the board.
Sir Jake Berry (Rossendale and Darwen) (Con)
Does the Secretary of State accept that grassroots sports can play a hugely important part in levelling up? As part of Darwen’s £120 million town deal, we have invested in our football club, our cricket club and our skate park, and we are about to open a brand-new five-a-side pitch. Will she talk with the Secretary of State for Levelling Up, Housing and Communities to see what part her Department can play in ensuring that sport plays its proper part in enriching the cultural lives of people in areas with levelling-up bids?
Lucy Frazer
My right hon. Friend is a huge champion for his area and for the north in general. He is absolutely right that sport, drama, creativity—all those things—level up an area. I am very happy to talk to my right hon. Friend in the Levelling Up Department to consider how we can continue, across Government, to support the north.
Richard Foord (Tiverton and Honiton) (LD)
I have recently visited sports clubs in Honiton, including youth rugby, gymnastics and football. They are all seeking support from the local authority, East Devon District Council, on the basis of its 2017 sports pitch strategy. The Government’s multi-sport grassroots facilities programme is very welcome, but does the Secretary of State consider it generous enough for youth sport, given that the co-benefits of sport for young people include a sense of camaraderie, good health and civic pride?
Lucy Frazer
Our strategy is helping sport across the board, but I recognise in particular the importance of getting young people involved in sport. We have invested around £1 billion in sport for young people, including £300 million for multi-sport pitches and £600 million in schools so that more children get the required two hours of physical education. We are also investing across the board in youth services to get more young children active in constructive activities rather than in less appropriate ones.
Sarah Dyke (Somerton and Frome) (LD)
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
I am proud of our Government’s record in supporting the creative industries. Figures published last week, which I am sure Opposition Members will welcome, show that our powerhouse creative industries grew by 6.8% in 2022, generating an enormous £124 billion for UK plc, putting us ahead of our ambition to grow those sectors by an extra £50 billion by 2030. Of course, much of that depends on the amazing talent of Britain. Many in the creative industries are benefiting from the Government’s targeted tax breaks, which are powering those industries.
Sarah Dyke
Does the Secretary of State agree that we need to support local initiatives to encourage more girls to get into—or back into—and remain in sport? I myself enjoyed a long and prosperous rugby career playing in national league 1. Will she join me in congratulating Somerton rugby football club on its new girls rugby “skills and social” nights?
Lucy Frazer
More girls should have the opportunity to play sports that are traditionally the preserve of the boys. That is why we are encouraging all schools to offer all sports to all their pupils, whatever their gender. In addition, we are backing women’s football, with £30 million for 30 pitches across the country to which girls will have priority access. It is absolutely right that we continue to encourage girls and women to take up more sport.
Sir Edward Leigh (Gainsborough) (Con)
Mary Robinson (Cheadle) (Con)
Cheadle Town FC have been a member of the north west counties football league since 1983. However, the oversubscribed division leaves Cheadle Town and other south Manchester clubs at risk of being moved laterally into a midlands division, meaning a significant increase in the club’s travel costs and an impact on gates, breaking their identity as a northern club, and challenging their future viability. I have met the Football Association and raised the club’s concerns. Will my right hon. and learned Friend join me in urging the FA to review its processes and listen to south Manchester clubs that want to keep their teams northern?
Lucy Frazer
My hon. Friend is a massive champion for her area—she has previously raised this issue with me and with the sport Minister. As she rightly recognised, levels five to 10 of the English football league system are administered by the FA, and decisions regarding which league a team plays in at those levels are for the FA in its role as governing body. I am sure the FA is listening to my hon. Friend’s concerns and will have heard her plea this morning.
Barbara Keeley (Worsley and Eccles South) (Lab)
This week in the House, I raised with the Economic Secretary to the Treasury the fact that serious delays in His Majesty’s Revenue and Customs issuing A1 forms mean that touring musicians are waiting months to be paid. A1 forms ensure that musicians do not have to pay additional tax when touring in the EU, but some musicians are waiting six to nine months, or even a year, for those forms. One leading singer told me that musicians feel like “hostages” of HMRC incompetence, so what is the Secretary of State doing alongside Treasury Ministers to sort out this mess, which is hitting UK musicians so hard?
Lucy Frazer
I recognise the importance of touring to many of our fantastic industries. We have bilateral agreements with many other countries to ensure that touring can take place, but I will continue to ensure that as a Government, we take every step across the board to make sure that our musicians can tour appropriately.
Andy Carter (Warrington South) (Con)
What assessment has the Minister made of the BBC’s proposals to launch four new national music radio stations and to relaunch an existing station, Radio 5 Sports Extra? To my mind, those proposals are a direct imitation of commercial broadcasters’ innovation, and the time and resource that the BBC is investing could be better spent in reversing the cuts to BBC local radio—a source of distinctive public service content that is not available anywhere else on the same medium.
Chris Stephens (Glasgow South West) (SNP)
Lucy Frazer
I am very proud that we have a free press, and I think it is really important that we repeal section 40 to ensure there is not a chilling effect on our reporting. Of course, since that was first proposed, we have had greater self-regulation, and I am sure the press will continue to ensure that they do their outstanding job in an appropriate fashion.
Andrew Selous (South West Bedfordshire) (Con)
Can we recognise pickleball as a national sport, and will the sport Minister come to the Dunstable Hunters pickleball club, where he will see men, women, grandparents and grandchildren having a wonderful time?
Michael Fabricant (Lichfield) (Con)
Does my right hon. and learned Friend agree that individual sports clubs have a role to play in providing youth services? In that respect, can I thank the Government for funding Lichfield sports club and Chasetown football club, which have both received grants for the work they do—grants that reach up to £2.5 million?
Lucy Frazer
My hon. Friend is absolutely right. He is a fabulous champion for Lichfield, and I am pleased that young people in Lichfield are getting the benefit of Government funding.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Lucy Frazer
I wish Labour Members would actually read our White Paper on AI, because in that paper we recognise the importance of this issue and the importance of protecting the creative industries. The White Paper sets out what we are doing about transparency, which is a key issue. We are of course continuing to work with both sides of the industry—the AI tech giants and the creators—to ensure we come to an appropriate resolution of this issue.
Sara Britcliffe (Hyndburn) (Con)
I refer Members to my entry in the Register of Members’ Financial Interests.
Will the Minister please update us on the independent regulator, and can he quite literally get the ball rolling to get this Bill in front of the House?
Sir Michael Ellis (Northampton North) (Con)
Does my right hon. Friend share my concern that the large number of inquiries that Ofcom has launched against GB News, for conducting itself in exactly the same fashion as other channels routinely do, is in danger of looking biased and political, and that Ofcom is in danger of putting itself in judicial review territory?
Lucy Frazer
The Government and I are in favour of media plurality, and it is important that different channels express different views across our vast political landscape. I am pleased that GB News has chosen to be regulated by Ofcom, and I know that Ofcom carries out its job appropriately.
Sports Grounds Safety Authority Licence Fee
Lucy Frazer Excerpts(2 months, 3 weeks ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Culture, Media and Sport (Lucy Frazer)
I wish to inform the House that the Government have taken the decision to reform the Sports Grounds Safety Authority (SGSA) licence fee structure.
The SGSA is the regulator for spectator safety which includes the 92 designated football grounds in the premier league and English football league, as well as Wembley stadium and the Principality stadium. The SGSA also acts as the UK Government’s adviser on safety at sports grounds and is a world leader in safety.
As part of its regulatory role, the SGSA issues licences to allow grounds to permit spectators to watch matches. The annual licence fee for clubs was set in 1993 at £100, which does not reflect the cost of regulation.
In 2022 the SGSA took part in the Cabinet Office public bodies review programme, which concluded the current funding model is
“inflexible and not fit for purpose, with the licence fee not reflecting the costs of regulation”.
In the Government response, we committed to working closely with the SGSA to consider the implications and practicalities of amending its existing funding model and explore options to enact any changes.
I am pleased to say that we have acted upon the review’s recommendation and that from the 2024-25 season, the SGSA will be implementing a new fee structure for designated football grounds licensed by the SGSA. I have determined that the fee will be based on official average league attendance over the previous two seasons. This decision follows a six-week targeted consultation led by the SGSA with the industry on the proposals to change the licence fee.
This change will ensure that the cost of regulation is met by industry and reduce the burden on the taxpayer. The SGSA will conduct a three-year review of the licence fee, which will include consultation with the sector.
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