Birmingham Commonwealth Games Bill [HL] — House of Lords, 2019-07-24
Topic: Macroeconomics
Thomas Ashton (Conservative, Centre-right): My Lords, I did not expect to enjoy a debate on raising tax but it was very entertaining. I thought that the noble Lords, Lord Hunt and Lord Griffiths, put their case very persuasively. I was going to mention the thin edge of the wedge but it has already been mentioned several times. The noble Lord, Lord Rooker, made a new suggestion about taking advantage of the absence of a Chancellor of the Exchequer. There might not be a Minister soon, and it would guarantee that there would not be a Minister if I did that. I am also grateful for the support of my noble friends Perhaps I might say something about the state of Birmingham’s finances and what Birmingham City Council is doing. As I mentioned in Committee, Birmingham and the West Midlands region will benefit, as the noble Lord, Lord Hunt, said, from a £778 million investment to stage the 2022 Commonwealth Games, with Birmingham City Council and a number of its key partners providing funding of £184 million—25%—of the Games budget Birmingham City Council has publicly committed to meet its financial obligations for the Games, and approved a four-year council budget at a full council meeting on 26 February this year, stating that there are sufficient reserves to cover the city’s share of the costs. It has already explained how it will meet its obligations without impacting on existing services. I refer noble Lords to Birmingham City Council’s publicly available Financial Plan 2019-2023. This states that, "resources have been identified for this purpose that will be sufficient to meet these funding liabilities as they fall due" It might interest noble Lords to know that the Government have already committed to working constructively with Birmingham City Council, to the extent that there was correspondence on 7 December 2017 from the Chief Secretary to the Treasury to Birmingham City Council on reviewing existing legislative powers and listening to requests for new powers, should the case for additional funding be made As the noble Lord, Lord Griffiths, said, we are in frequent dialogue with Birmingham City Council but, to date, no detailed case has been put forward to evidence the need for an additional power. However, I understand that Birmingham City Council is now undertaking detailed work, with expert advice, on various options for revenue-raising to offset the costs of the Games, including the use of existing powers or the introduction of a new tax, such as a hotel tax. We and Her Majesty’s Treasury await the conclusion of that analysis and stand ready to look at the details of any proposals put forward by the council My honourable friend the Minister for Sport and Civil Society—I have her full title right this time—has spoken to the Chief Secretary to the Treasury about this. As I stated previously, matters of taxation are for HM Treasury to consider, with appropriate evidence, consultation and assessment of impact—for example, on tourism—as my noble friends Lady McIntosh and Lady Neville-Rolfe mentioned. I am grateful to my noble friends for their support We consider that these amendments are not an appropriate measure for the Bill, which, I remind your Lordships, is focused on providing the temporary operational powers required to deliver a successful Games, and they would pre-empt the outcome of the work already being undertaken by Birmingham City Council.