Draft Sovereign Grant Act 2011 (Change of Percentage) Order 2017

Tommy Sheppard Excerpts

Thursday 2nd March 2017 General Committees

[Tommy Sheppard (Edinburgh East) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Bone.

We cannot support the statutory instrument, or the taking of this decision at this time and in this way. Let me be clear that my remarks are not a criticism of or challenge to the monarchy or the royal household. Nor is there a suggestion that Buckingham Palace is anything other than an historic asset of the country that needs to be invested in and protected.

What we are concerned about is using a variation to the sovereign grant to fund such a major item of capital expenditure. That goes against the conventions of public financing. In any other sphere we would not conflate revenue and capital expenditure in that way. If a major investment of £400 million in the infrastructure of Buckingham Palace is needed, it seems to me that that should be treated as a separate capital project, and properly budgeted for, rather than being funded out of the sovereign grant, which is meant to fund the revenue expenses—the day-to-day and year-to-year expenses—of the royal household and the maintenance of its duties. The proposal is similar to saying that the works that need to be undertaken to this place should be funded by doubling MPs’ salaries and asking them to make a contribution to the contractor doing the work. That is not, of course, how we would do it.

The hon. Member for Bootle is right to say that we need to be aware of public perceptions. Yesterday there was a demonstration outside Parliament by people with disabilities who are campaigning against an imminent cut of £30 a week in the employment and support allowance, amounting to £1,500 a year. That is a paltry sum set against the figures under discussion, but it could literally mean life or death to the people in receipt of the benefit. I think that the public would find it hard to understand how, when the public finances are in such dire straits that we need to implement such cuts that affect the poorest members of society, there is apparently no problem in simply finding the money to undertake major works at Buckingham Palace.

I suggest that the matter should be debated fully by the entire House and that we should divide on it. It is not something to be relegated to a Committee and dealt with in a matter of minutes on a Thursday morning. I think that many hon. Members on both sides of the House would want to participate and they should have that opportunity.

In conclusion, when the proposal was made to change the civil list to the sovereign grant, I do not think that this is what those who drafted the legislation had in mind. Of course, there could be variations in the percentage of Crown Estate revenue that goes to the sovereign grant, but that should happen only when a predicted or known increase in the revenue budget is required for the funding of the royal household. It should not go towards capital works on a new roof, new wiring or whatever works are needed at Buckingham Palace or any other royal palace. That should be treated separately; otherwise we shall be in a bizarre situation whereby we will have to come back here year after year, depending on what capital works are required to the royal estate, to consider such variations.

That does not seem to me to be a good way to do business, so I am afraid that we cannot support the statutory instrument. We shall seek a Division and we look forward to a debate on the Floor of the House.

--- Later in debate ---

[Tommy Sheppard]

I understand and accept the popularity of Buckingham Palace as a tourist attraction, and as a visitor attraction for people who live in this country. Would it not therefore be reasonable to consider whether the commercial dimension of Buckingham Palace as a venue and an attraction might provide an income stream to fund ongoing capital works to maintain its current quality?

[Simon Kirby]

The hon. Gentleman raises an interesting point. That is exactly what we are deciding today. There will be 115,000 more visitors each year, because there will be increased access. Some 30,000 more children will be able to visit the palace—only 1,500 can currently do so. There will be an additional 110 events every year. This is a long-term solution. The hon. Member for Bootle was right to say that previous Governments of all colours should perhaps have considered this more carefully, but we are where we are and this is a sensible way forward.