Category: Culture

  • John Whittingdale – 2022 Speech on Channel 4 Privatisation

    John Whittingdale – 2022 Speech on Channel 4 Privatisation

    The speech made by John Whittingdale, the Conservative MP for Maldon, in the House of Commons on 14 June 2022.

    There is a lot in the Opposition motion with which I agree, particularly its drawing attention to the success of our creative industries and our broadcasting sector and to the benefits that Channel 4 has brought, but it is because I want to see the continuation of Channel 4’s contribution to the creative sector that I believe the Government’s policy is right and will ensure that Channel 4 can continue to thrive.

    As has been pointed out, Channel 4 was created by Margaret Thatcher’s Government. There were two principal objectives. The first was to cater for minority audiences that were not being properly provided for at that time. The second was to act as a catalyst to what was then a barely visible independent production sector. Since that time, the landscape has changed dramatically. If we look at the range of choice now available to viewers, we see huge numbers of channels providing a wide and diverse range of content. We also see the spend by those channels. A lot of them are not British, but they are spending money in Britain. Just to give one example, Apple TV recently came to my constituency of Maldon to make “The Essex Serpent”, which I thoroughly recommend to those who have not yet seen it. Minority audiences are now being catered for, but of course Channel 4 should continue with that remit and continue to meet it.

    The independent sector has absolutely taken off since Channel 4 was created and is now making programmes that are enjoyed right across the world. However, it is true, as one or two hon. Members have pointed out, that the spend of Channel 4 has declined. I want to cite quickly the latest Oliver & Ohlbaum UK TV production survey for PACT—the Producers Alliance for Cinema and Television—which is the independent production sector. In 2020, spending on independent producers was £508 million by the BBC, £356 million by ITV, £210 million by Channel 4 and £223 million by the others, including Sky and some of the streamers.

    Just in case people say, “Ah, but Channel 4 continues to support the small indies”, I point out that 40% of the BBC’s spend is on independent production companies with a turnover of less £10 million, compared with 27% of ITV’s, 11% of Channel 5’s and just 10% of Channel 4’s. Yes, Channel 4 does make a contribution, but the independent production sector is actually now so successful that it no longer necessarily needs the support it was previously given. Indeed, I think there is a case for tweaking the remit so that Channel 4 is perhaps returned to its original purpose of focusing on growing companies, not just on commissioning from production companies that are already hugely successful.

    The reason why it is right to look at the future of Channel 4 now is that the original model set up, as a commissioner and publisher-broadcaster wholly dependent on advertising, is going to come under increasing strain. Yes, Channel 4 did well last year in that it survived the pandemic. It did so because it cut the programme budget by £140 million and its drop in revenue was not quite as big. As a result, it made a larger profit, but it did so only by slashing the programme budget. That was a sensible thing to do, but it should not be interpreted as Channel 4 thriving and not being under huge pressure.

    We know that that pressure is going to increase. Advertising is steadily migrating online. Digital advertising is becoming overwhelmingly the major spend by the advertising industry. As the Secretary of State pointed out, those that want to spend on TV advertising have ITV, Channel 4, Channel 5 and Sky to go to at the moment, but the streaming services are also going to open up to advertising. Netflix is talking about taking advertising and Disney is talking about taking advertising, so the competition for advertising is going to get ever greater and the diversion of revenue to digital media is also going to continue.

    Channel 4’s revenues are going to come under increasing strain at the same time as the cost of production is rising steadily and there is a shortage of skills. As has been pointed out, there are potential benefits from privatisation, and the hon. Member for Cardiff West (Kevin Brennan) referred to the difficulties that might be encountered in the House of Lords. To quote the last House of Lords report on Channel 4:

    “The potential benefits of privatisation to C4C’s sustainability are increased access to investment in programming, content partnerships and technology through access to capital. This would enable C4C to diversify its revenues, enhance its sustainability and be more ambitious internationally.”

    I could not have put it better myself.

    I want to counter those who suggest that this somehow a vendetta against Channel 4 because some people may not like some programmes. I completely reject that. I remain a fan of Channel 4 News, even though it annoys me intensely on occasions. It is important that we have plurality in our news provision, and Channel 4 News is a professional news provider. This is not just about raising money for the Treasury. The reason behind privatisation is that the Conservative Government whose predecessor created Channel 4 want Channel 4 to go on succeeding, but under the present change in the landscape, it needs a different funding model and the access to capital that the private sector can provide.

  • Rachel Hopkins – 2022 Speech on Channel 4 Privatisation

    Rachel Hopkins – 2022 Speech on Channel 4 Privatisation

    The speech made by Rachel Hopkins, the Labour MP for Luton South, in the House of Commons on 14 June 2022.

    It is a pleasure to follow the hon. Member for Solihull (Julian Knight).

    “Channel 4’s public service model and remit, which are so vital to the continued strength of the UK’s broadcasting ecology, would not be best served by privatisation”.

    Those are not my words, but those of the then Conservative Secretary of State for Digital, Culture, Media and Sport only five years ago. They still represent a wide consensus among the public: when the Government’s consultation last year essentially asked respondents whether they thought Channel 4 should be privatised, 91% said no and only 2% said yes.

    The case for the continued public ownership of Channel 4 is overwhelming. It does not cost the taxpayer a single penny. It invests 100% of its revenue back into the channel to provide entertainment for the public, good jobs in communities and opportunities for the UK’s fast-growing creative industries. Its unique remit has allowed it to directly invest more than £1 billion into the UK’s independent production sector and work with 300 smaller production companies every year. Channel 4’s commissioning has boosted local economies across the country; it spends more with production companies in the nations and regions than any other public service broadcaster, and more than 50% of its commissioning budget is allocated to production companies outside London.

    I remember Channel 4 first coming to our screens in 1982. It was an exciting prospect. It was fitting that its first show was produced by a regional production company, Yorkshire Television—it was none other than teatime favourite “Countdown”. Over nearly 40 years, Channel 4 has pioneered representation and diversity and showcased them to audiences across the UK and the world. Its focus on alternative voices and cutting-edge storytelling has created TV firsts such as the first female same-sex kiss aired before 9 pm, which was on “Brookside” in 1994. Recently, we have seen “It’s a Sin”, “Derry Girls” and a favourite of mine, “The Lateish Show with Mo Gilligan”, all brilliant examples of what a publicly owned Channel 4 can still create.

    Maintaining our world-class reputation in TV production and film-making is critical to our global Britain ambitions, but let us be frank about what the Conservative Government’s decision tells us: they are not serious about distributing economic growth, supporting small and medium-sized businesses or backing the UK creative industries on the global stage. As the National Union of Journalists has put it:

    “It’s hard to see any justification for privatising Channel Four other than ideology. Channel 4 has achieved what it was asked to do and has proved a hit with viewers.”

    The Government’s hollow justification for a change in ownership does not stand up to scrutiny. Channel 4 is thriving. It is the UK’s largest streaming service—nearly a third more than Netflix in 2020—while Netflix’s share prices have plummeted.

    The benefits of a publicly owned Channel 4 are clear and obvious for all to see, and selling it off is an ideological act of vandalism. This ideologically driven attack on the future of our creative industries and on the principle of having public service broadcasters will create a Channel 4 that is focused merely on delivering profits to shareholders and not on creating diverse and distinctive content for the public. Privatisation would end the unique rights model that supports independent companies to grow. It would also threaten the future of Film4, which spends more on British film than any other UK broadcaster, investing £25 million annually in feature films that nurture diverse and new talent. This has created films such as “Trainspotting”, “Slumdog Millionaire” and “12 Years a Slave” and has collectively to date won 37 Academy Awards and 84 BAFTAs.

    As well as the likelihood of losing the alternative, gritty, brave content we all love, the economic damage across the country would be substantial. As we have heard, EY analysis has found that £2 billion-worth of Channel 4’s contribution to the creative economy in the regions would be lost if the channel were privatised, and there would be a 40% decline in the regional supply chain contribution and a 35% decline in jobs supported in the nations and regions.

    I also want to make the point that the timing of the announcement is curious. As has been mentioned, this proposal was not in the Government’s manifesto. The Government have prioritised selling off a proud British institution over tackling the cost of living crisis that is ravaging communities across the country. I look forward to the Minister telling the House in her wind-up speech why the Government are prioritising selling off Channel 4 over bringing down food, energy and fuel bills. How will selling off Channel 4 help my constituents to pay their bills? Or is this really a petty vendetta against a broadcaster whose news content the Conservatives do not like?

    Unlike the Conservative party, Labour is proud of our great British broadcasters. We recognise the power of projecting British culture, values and creative excellence across the world in helping our country to prosper. If it were not for Channel 4, my younger self would not have discovered great new music by watching “The Tube”, discovered brilliant comedy such as “Father Ted” or felt represented by working-class drama such as “This is England”. Now, my middle-aged self would not be enjoying some of the best political commentary from the good people of “Gogglebox” or “The Last Leg”. Pushing forward with privatisation represents a complete disregard for the concerns of the creative industries and the public. Channel 4 ain’t broke.

  • Kevin Brennan – 2022 Speech on Channel 4 Privatisation

    Kevin Brennan – 2022 Speech on Channel 4 Privatisation

    The speech made by Kevin Brennan, the Labour MP for Cardiff West, in the House of Commons on 14 June 2022.

    I endorse what the Father of the House just said. That is not to say that I do not have sympathy with Ministers. I was a Minister in the last Labour Government and I understand that Ministers face very difficult decisions. It is not always a decision between simply what is right and what is wrong. Sometimes, it is not a decision between good and evil. Sometimes, it is a decision between the unacceptable and the unpalatable. So I have sympathy with Ministers when they are considering policy.

    However, I have been trying to imagine the meeting that the Secretary of State and her Ministers must have had to discuss this topic. Presumably, the permanent secretary came along and said, “Secretary of State, I’m afraid that I’ve got some bad news for you: we haven’t got a problem.” The Secretary of State said, “Really? That’s worrying. What haven’t we got a problem with?” The permanent secretary said, “I’m afraid we haven’t got a problem with Channel 4.” The Secretary of State said, “Why? What has it been doing?” The permanent secretary said, “I’m afraid to tell you that it hasn’t been costing the taxpayer a penny while it has been operating as a public service broadcaster. It gets worse. Last year, it brought in £1.2 billion in revenue and a record financial surplus of £100 million. If that is not enough, it does not even need to borrow any money to finance its operations. I’m afraid to tell you, Secretary of State, that there is much more of this. It has also been rapidly growing its digital advertising revenue, moving into the advertising market that is the future in a way that is far outstripping all of its commercial competitors. Worse still, its digital strategy is way ahead of all its commercial competitors. It has been, annoyingly, fulfilling its remit to appeal to young people. It is the most successful broadcaster of any commercial broadcaster in reaching 16 to 34-year-olds and hugely diverse audiences.

    On top of that, I’m afraid to tell you, Secretary of State, it has been commissioning content from independent producers all over the country—”

    Madam Deputy Speaker (Dame Eleanor Laing)

    Order. The hon. Gentleman is doing it, too. You cannot say, “I want to tell you, Secretary of State.” You have to say, “Madam Deputy Speaker, I want to tell the Secretary of State.”

    Kevin Brennan

    I apologise, Madam Deputy Speaker, but I was quoting, in an imagined scenario, the permanent secretary. I was not referring to you, Madam Deputy Speaker. This is a creative debate about the creative industries. I was creating an imagined conversation, so I do apologise if—

    Madam Deputy Speaker

    Order. I apologise to the hon. Gentleman. I had not quite picked up on the context. He is probably allowed to make an imaginary quotation, saying, “You, Secretary of State.” Fine—proceed!

    Kevin Brennan

    I know that satire and irony does not translate very well into Hansard, Madam Deputy Speaker. Perhaps it could be put into italics, so that everybody can realise.

    Jesse Norman

    I just wondered, in the spirit of chivalry, whether I might be able to give the hon. Gentleman an extra minute by making an intervention.

    Kevin Brennan

    I have a feeling that that might not be in order, Madam Deputy Speaker.

    Madam Deputy Speaker

    Order. I would just point out to the right hon. Member for Hereford and South Herefordshire (Jesse Norman) that he might find he is disappointed at the end of the debate when he himself loses a minute.

    Kevin Brennan

    I am very grateful to the right hon. Gentleman for his motives. I hope he achieves his objective, but I am not sure whether I will get that extra minute.

    In the imaginary conversation, the permanent secretary might have gone on to say, “On top of that, Channel 4 works with 300 production companies a year. It spends more on external production in the nations and regions than any other commercially funded broadcaster, dedicating over half its total content spend to content produced there. I’m afraid to tell you, Secretary of State, that, in addition, Channel 4 has created hundreds of high value jobs in the nations and regions, including by moving a large part of its operations out to Leeds”—I am afraid it was not Cardiff; I wish it had been Cardiff, but it has moved an important HQ out to Leeds—“and announcing plans to significantly increase its investment in skills.”

    The permanent secretary might have continued, “On top of that, I am afraid it has been taking decisions with the public interest at heart. I’m afraid to report, Secretary of State, that it has been taking those sorts of decisions, including broadcasting the Paralympics, which otherwise would not have been exposed, and giving a whole hour every night in prime time to news. The news, which counters the misinformation that is such a blight of our age because of the internet, is subcontracted to a production company”—as ever, to ITN—“and subject to Ofcom’s rules of impartiality. And it has been absolutely integral to the success of our film industry.”

    “In other words, Secretary of State,” the permanent secretary must have said, “it is a shameful litany of success from Channel 4, and we really ought to do something about it.” Presumably, the Secretary of State would have said in response, “Well, quite clearly, we cannot allow things to go on as they are, because we are going to risk the Government’s reputation for incompetence if this carries on. We have to protect it, and, after all, we were absolutely silent in our manifesto on the issue of privatising Channel 4. Therefore, it is absolutely imperative that we should definitely do it. We did not seek a mandate from the electorate to privatise this successful, publicly owned, public service broadcaster, so we absolutely ought to do it.”

    I say to the Minister for Media, Data and Digital Infrastructure, the hon. Member for Hornchurch and Upminster (Julia Lopez)—a very thoughtful Minister, who I am sure will make the best fist of this whole thing both here and eventually in Committee, if this lamentable proposal ever gets that far—that that is where we are at the moment: caught up in an episode of “Parliamentary Pointless”, with a policy that nobody promised in search of a problem that nobody perceives.

    Lord Parkinson, the Arts Minister, appeared before the Digital, Culture, Media and Sport Committee this morning, and told us he has six Bills coming down the track in the House of Lords. I would have thought he had enough on his plate, without a pointless proposal of this kind. If colleagues in this place do not prevent this daft proposal from going any further, and the idea ends up down in the House of Lords, I am telling you—you, Madam Deputy Speaker, and the House—that it has no chance of making swift progress in the House of Lords, because it was not in the manifesto. As a result, as Lord Parkinson accepted this morning, the Salisbury convention will apply, and their lordships will feel as free as ever to delay the proposal and if necessary, as they are constitutionally entitled to do, invoke the Parliament Act. The proposal is pointless and should be abandoned.

  • Peter Bottomley – 2022 Speech on Channel 4 Privatisation

    Peter Bottomley – 2022 Speech on Channel 4 Privatisation

    The speech made by Peter Bottomley, the Conservative MP for Worthing West, in the House of Commons on 14 June 2022.

    It is interesting to follow the hon. Member for Ochil and South Perthshire (John Nicolson). I do not think he needed to bring in party politics in the way that he did. I do not think that will help Channel 4, and I do not think it will help him either. What I do think is that, if the arguments put forward for the privatisation of Channel 4 were any good, they would have been put forward by Channel 4. If I were Secretary of State, I would say, “Ask Channel 4 to ask for privatisation as and when they think it will help them as a public service broadcaster.” It has not.

    I ask the Government: when was the last time Channel 4 used public money for programmes? When did it last ask to have its borrowing limit lifted? It has not. I ask the Secretary of State whether she could have put in what she said. How much has Channel 4’s income from digital advertising increased in the last year and how much does Channel 4 expect it to rise in the next four years? We know that subscription on demand has grown and that broadcasting on demand has grown, mainly through Channel 4, but others can do the same, and we expect growth in advertising on video on demand. What we do not need to do is to throw away one of our best linear broadcasters which is also good at digital transformation.

    Nothing has been said by Government, or even Government supporters, that suggests that Channel 4 would do better in other hands. The only conceivable ownership that would keep it going the way it is now is if it were given to the independent production companies to own as a mutual, and kept the broadcaster role and the rights on secondary broadcasting. That is a zero-sum game. Either the income stays with the producers or it goes to the broadcaster—it cannot go to both. If the Government think it would help the producers to take away that secondary income, they are just saying, “We are going to take it from one pocket and put it in another.” No argument has been put forward for that.

    Have the advertisers said that they want this for Channel 4? No. The Incorporated Society of British Advertisers has said very clearly that it does not want that. There is also no evidence from polls or the Government survey and consultation that the viewers want its ownership or remit changed. The Government say that they are going to keep the whole public service remit, but they are not.

    Channel 4 has been going—successfully—for 40 years. It has its ups and downs, but generally it is on the way up. The transformation in the way it produces and presents its products has gone on improving choices for people.

    We have more than three different types of public service broadcasters. The Government are proposing to abolish one of them. That is not conservative; it is destructive. I do not blame the Secretary of State for thinking up the idea; it was there before she took on her responsibilities. But she could have done what other Secretaries of State have done and stood up to those who want to privatise Channel 4. My wife did. She was in a small minority in the Cabinet. She stood up against it. Her arguments were right. When the Chancellor said, “We want to get some money in, because we are short of money,” she explained that it was not a question of how much; it was just wrong. In the years since the mid-1990s—that is about 27 years—Channel 4 has gone from strength to strength.

    I say to the Government: do not go on with this, although not because I do not like privatisation—I do. The privatisation of the National Freight Corporation—incidentally, that was the only bit of privatisation in the 1979 manifesto on which Margaret Thatcher and I got elected—was to hand the National Freight Corporation to its employees and that worked really well, but that is not the proposal here.

    Government speakers say that the proposal will give Channel 4 more money to put into training people. We do not need to privatise an organisation to do that. They say that it will provide more money for commissioning programmes. Maybe it would in the short term, but not in the long term. What is the medium-term and long-term gain? The answer has not been put forward.

    I do not seriously believe that the Secretary of State or her colleagues mind being criticised by Channel 4 News—by criticism, I mean being asked to answer questions. That is the sort of thing that happens in the House of Commons and they do not try to abolish the House of Commons because we ask awkward questions. But as I have said, it is far better to be in government and to have to answer awkward questions than to be in opposition and cheer when the interviewer puts the awkward questions to the Labour party or whatever else might be the alternative Government.

    I ask the Secretary of State and the Government to think again, to leave the proposals for Channel 4 to rest and to say to Channel 4’s viewers, management and board, “If and when you believe that we can do better under a different kind of ownership, come forward and say so.” One of the many groups that have not done that is those involved in Channel 4.

    Those who are concerned more for the producers of programmes than for the viewers put the arguments well around the nations of this country. I do so on behalf of the public interest. If the choice is between the state owning Channel 4 and the United States owning Channel 4, it is better to have it as a state corporation, independent of Government. I wish Government would stop messing it around.

  • John Nicolson – 2022 Speech on Channel 4 Privatisation

    John Nicolson – 2022 Speech on Channel 4 Privatisation

    The speech made by John Nicolson, the SNP MP for Ochil and South Perthshire, in the House of Commons on 14 June 2022.

    Thank you, Madam Deputy Speaker. I did not expect the Secretary of State to leave quite so quickly.

    It is good to see so many unfamiliar faces on the Tory Back Benches—Members with a new-found interest in broadcasting—and also not just the current Conservative Select Committee Chair but two former Chairs. It is like being in one of those “Doctor Who” episodes with three Doctors all in one episode at the same time.

    Here we are again. With a grim familiarity, we are once again debating the future of Channel 4 as Opposition Members try to defend one of the country’s best-loved institutions from the culture warriors on the Conservative Front Bench. I do not believe that everybody in the DCMS Front-Bench team falls into that category: some are simply trying to keep their heads down until the chancer in No. 10 gets toppled, taking his fawning political acolytes with him. Channel 4 probably feels much the same.

    Mr John Whittingdale (Maldon) (Con)

    Will the hon. Gentleman give way?

    John Nicolson

    Later—let me make some progress.

    Until then, we have little choice but to combat the collection of semi-arguments, half-heard bar-room prejudices, factual errors and outright disinformation that forms the basis of the Government’s case for privatising the channel. There is of course the never-ending irony that a Government pretending commitment to levelling up are making decisions that will jeopardise national and regional businesses in the production sector. Channel 4 spends more on nations and regions production than any other commercially funded broadcaster, and in 2021 dedicated 55% of its total content spend to content produced in the nations and regions. As we have heard, with a headquarters in Leeds and hubs in Glasgow, Bristol and Manchester, Channel 4 is a model levelling-up employer.

    So why sell this model levelling-up employer? Is it in financial peril? We know that it is not. Channel 4 currently generates £1 billion of gross value added for the UK economy, working with around 300 production companies a year. To be clear, the UK Government want to sell a healthy, successful company that, because of the way it was established, cannot keep its profits. It must and does reinvest all revenue made back into the business—a dream for the consumer. If only the privatised utilities had been set up on that model, how much better off we would all be.

    The Government’s excuse to attack Channel 4, this jewel in the broadcasting crown, is that they want to raise money to reinvest in the independent production sector. That is precisely what Channel 4 does with its profits at the moment. It is entirely nonsensical. All that the Government wheeze will do is put investment and jobs in jeopardy. Do they care? Does the absent Secretary of State have some great insight into the sector that lesser mortals, including those who run the company and oppose her, do not?

    We all know the Secretary of State’s history of gaffes and confusions, but on Channel 4 she has surely surpassed herself. Millions of views of her faux pas on YouTube do not make her a broadcasting expert. The House will know that she did not know how Channel 4 was funded when she appeared before the Digital, Culture, Media and Sport Committee, on which I sit. She thought it was publicly funded, rather than funded by advertising. Her confusion was excruciatingly laid bare on camera when a Conservative member of the Committee, the right hon. Member for Ashford (Damian Green), had to explain Channel 4’s funding model to her.

    Paul Bristow (Peterborough) (Con) indicated dissent.

    John Nicolson

    The hon. Gentleman is shaking his head. Feel free to intervene, rather than groan in agony. Apparently he cannot marshal the words to match his facial expressions.

    Millions of Channel 4 viewers will have noticed the adverts on Channel 4, but the Secretary of State apparently has not, yet she presumes to pontificate on Channel 4 while junior Ministers breathlessly wait. It is like watching an unbenevolent Mr Dick from Charles Dickens fly his kite. [Interruption.] It is a literary reference. People may laugh at the clips, but such wilful ignorance debases the policy-making process. When she is misunderstanding the most fundamental part of her brief, but still thinks it appropriate to patronise the Channel 4 management and staff, it is painful to witness. Nor was that a one-off; the Secretary of State thought that Channel 5, as has already been quoted, had been privatised. She told Iain Dale of LBC that it was, citing the privatisation of Channel 5 as a model for Channel 4 privatisation. She said that it was privatised

    “three years ago, five years ago maybe”

    when she did that particular interview. There was only one problem: Channel 5 was never privatised. It was another excruciating on-air exhibition of ignorance.

    The Secretary of State may not know much about the sector, but does she at least have the public on her side as the Government lunge at Channel 4? Apparently not, although she does not seem to know it. Let us look at the consultation she set up to assess public opinion on the proposed privatisation. At a November DCMS Committee session, the Secretary of State said:

    “what is the point of having a consultation that 60,000 people respond to if I had already made my mind up what I was going to do with Channel 4? That would be an abuse, I think, and a waste of money and effort on behalf of a large number of civil servants. I would really like to see what those 60,000 responses say first.”

    The message was clear: she would listen to the public, those who watch and love the channel.

    People did respond to the Government when asked for their view. As the Secretary of State said, 60,000 responded in an impressive display of public engagement. What did the figures show after they were analysed? Those figures, which the Secretary of State told us it would be an abuse to ignore, were interesting. Some 96% of the public were against Channel 4 privatisation, although in yet another moment of tragicomedy, the Secretary of State announced to the Select Committee at her latest appearance that 96% of the public were in favour of privatisation.

    Alun Cairns

    I am not sure whether the hon. Gentleman is advocating no change for Channel 4, but if he is, how will he accommodate the fall in advertising income and its impact on the spend in Scotland, Wales, Northern Ireland and the English regions?

    John Nicolson

    As other hon. Members have already explained, Channel 4 is making record profits. Since the system seems to be working so well, I do not see the point of breaking it.

    Alun Cairns

    It is spending less.

    John Nicolson

    It is making plenty of programmes. In fact, the Secretary of State already said that so many production companies are being successful that they cannot keep up with the current demands. Conservative Members need to marshal their arguments and work out which they are advocating.

    Once again, so we are all clear: 96% of the public in the Government’s own consultation process, which the Secretary of State said it would be an abuse to ignore, said that they opposed Channel 4 privatisation—so much for respecting the public will. It appears that the public matter as little as industry experts.

    Let us turn to one of the main arguments put forward for the privatisation of Channel 4. The Secretary of State often says that she wants it to be able to compete with

    “streaming giants such as Netflix and Amazon”.

    She may have noticed that they do not have war correspondents, or at least that those who do appear are actors in movies, not journalists dealing with breaking news. The comparison is far from ideal, but let us briefly explore it anyway.

    Amazon Prime is owned by a trillion-dollar company that uses its video streaming end as a loss leader. Unlike Channel 4, it does not make a profit, so it is far from a role model. What about Netflix, the other role model that the Secretary of State has in mind for a privatised Channel 4? That is not going so well either. It has racked up billions of dollars of debt and its share price has fallen by more than 70% in the last six months, which demonstrates the volatility of the market.

    Unlike the Secretary of State’s chosen examples, Channel 4 is a commercial success that runs a profit, not a loss. Its real competitors are the current UK public service broadcasters such as the BBC and ITV. We all know that the future is digital and here Channel 4 leads the UK. We all know that linear numbers are down, but it is in a strong position to benefit from that trend as it is the UK’s biggest free streaming service, despite having a considerably smaller budget than the BBC. Also, of course, because it is publicly owned, it can reinvest extra revenue.

    What if the nightmare happened and the Secretary of State got her way? Some on the Tory Benches—I suspect not those invited to participate in this debate—may be swithering and wondering what the future of Channel 4 will hold. They might consider that the Secretary of State, however dodgy her grasp of facts and of the issue, has promised that Channel 4 will remain a public service broadcaster. They might think, “We will have sold off another piece of the family silver, but at least we can all muddle through and things might not change that much.”

    Well, not so fast: although the Secretary of State did promise that, whatever fate befalls Channel 4, it would always remain a public service broadcaster free at the point of use, that undertaking fell apart somewhat under cross-examination at the Select Committee. We discovered that Channel 4’s buyer need only keep it as a public service broadcaster for 10 years. The Secretary of State has now made it clear that the Government will have no locus over the broadcaster once that period is over. When asked if the owners would have to consult the Department after 10 years, the Secretary of State said:

    “No, it will be privately owned. It will be up to owners.”

    So I say to Tory Back Benchers who are uncertain about what to do, if the new owners want to make Channel 4 a streaming service, they can. If they would like to ditch the award-winning “Channel 4 News” with its new chief anchor Krishnan Guru-Murthy, it is up to them. The Secretary of State may be too scared to go into the studio to face him about Channel 4 privatisation, but do those Tory Back Benchers not want him and the news channel to be around to tackle the next Labour Prime Minister? Short-termism may come back to bite them. Say goodbye to “Unreported World”, which sends intrepid correspondents off to tackle unreported stories in some of the world’s most dangerous hotspots. They are astonishingly brave, but the show is expensive to make. Would a privatised company make it? No one at the channel thinks so.

    The new owner could break up the company and sell it off. They could move it out of the UK. It is up to them entirely. The Secretary of State may argue that that is unlikely or would not make commercial sense, but do you really trust her judgment? Do you think she understands the detail? Will she even be around once this Prime Minister is gone? Who knows—it doesn’t really matter. What is important is that, once this 10-year period is over, the Government will have absolutely no power; it will be too late.

    Reasoned argument has been tried and tested over Channel 4 privatisation. The arguments for privatisation never stack up. As a previous Secretary of State told me:

    “too expensive, too unpopular, and too little in return.”

    That Secretary of State had listened to the experts. This one does not seem to want to listen to the experts.

    With an 80-plus seat majority, this ultimately, as we all know, will be up to Tory Back Benchers. Those of you not on the Government payroll do not much like your leader—we saw that and we saw how you voted. That we know and you often tell me you do not really believe in the culture wars—

    Madam Deputy Speaker (Dame Eleanor Laing)

    Order. The hon. Gentleman is not really addressing the Chair when he says “You”. He means “They,” not “You.”

    John Nicolson

    I beg your pardon. I try to avoid that, Madam Deputy Speaker.

    Now is the chance for Conservative Back Benchers to join us on this side of the House in the mainstream. Please stand up for a national treasure.

  • Nadine Dorries – 2022 Speech on Channel 4 Privatisation

    Nadine Dorries – 2022 Speech on Channel 4 Privatisation

    The speech made by Nadine Dorries, the Secretary of State for Digital, Culture, Media and Sport, in the House of Commons on 14 June 2022.

    I start by paying tribute to all involved in putting on a wonderful platinum jubilee weekend over the bank holiday. My Department and the royal household spent years preparing for this fantastic event. It was a historic moment for Her Majesty, the country and the Commonwealth, and a celebration for all to remember. Once again, I pay tribute to the BBC and other broadcasters for their extended coverage, including the BBC’s coverage of the amazing concert.

    It has been a great few months for our culture and heritage. Just a few weeks ago I was in Coventry, where I was delighted to announce that it will be succeeded by Bradford as the UK’s city of culture. The city of culture competition has been made a permanent fixture on the national calendar under this Government and, for the first time ever, we are awarding the runners-up £125,000 in funding. Local MPs will be involved in the decision making on how that money is spent.

    The motion asks the House to support our much-loved cultural institutions. That support is in no doubt as far as the Government are concerned, as evidenced by the £2 billion committed to support our theatres, museums, cinemas, performance venues and other venues through one of the worst crises they have ever faced. I know how important this has been to those cultural institutions up and down the country, not least because they have told me. Theatres have said that without our support their doors would still be closed and their stages bare. Museums have said that without our support they would not have been able to protect their collections and put them back on display.

    This Conservative Government have put our money where our mouth is by backing culture, and unashamedly so. There was no procrastination; we did it from the off.

    Kerry McCarthy (Bristol East) (Lab)

    Will the Secretary of State tell us what Channel 4 said when she suggested to it that it will be privatised?

    Ms Dorries

    I do not disclose private conversations. I am not sure which aspect of any conversation the hon. Lady wants me to mention.

    Straight from the off, we provided £2 billion to support our cultural organisations and institutions across the UK, which is why, after the pandemic, our arts and culture are back with a bang.

    Labour’s motion asks us to support our world-renowned British broadcasting, which is also not in doubt. Under this Conservative Government, the film and TV industry is absolutely booming: production studios are fully booked, British-made programmes are celebrated all over the world, and this Conservative Government have just delivered the first broadcasting White Paper in 20 years. It takes into account the huge transformation that the broadcasting world has undergone in the past decade or so, and seriously considers how we can protect our British broadcasters in the rapidly evolving streaming era. Unlike the Labour party, we have not buried our head in the sand. We have not ducked important choices and decisions. We are looking ahead and taking the necessary decisions that will allow broadcasters to flourish.

    Jesse Norman (Hereford and South Herefordshire) (Con)

    On the consultation, my right hon. Friend is absolutely right to say that the Government should not be ducking difficult decisions. I would completely understand if they do not wish to publish the 38 Degrees consultation responses, but will she publish the industry organisation responses and the individual responses, because they will help to dispel a concern that the programme and the process has not been properly run?

    Ms Dorries

    We have published a comprehensive response to the consultation, in line with the format used by all Departments in response to consultations—that has already been done.

    Our “Up next” White Paper contains a number of key proposals to achieve our goals. First, we want to ensure that in a world of smart TVs and online platforms our public service broadcasters continue to receive the exposure that they deserve. On a traditional TV, BBC, ITV, Channel 4 and Channel 5 are given prominence on every TV set in England and Northern Ireland. Likewise, in Wales, we will always find S4C on channel No. 4, and in northern and central Scotland we will always find STV on No. 3. We plan to update those rules for the digital age by passing legislation that ensures that PSB content is always carried and easy to find on all major platforms.

    Colum Eastwood

    The hit series “ Derry Girls”, which is of course based in my constituency, has met with rave reviews all around the world, and has been instrumental in educating people on the Good Friday agreement and the principles that underpin it—a few people in the House of Commons could do with watching the last series. Does the Secretary of State agree with me, and with the creator and writer of “Derry Girls”, Lisa McGee, that it would have been impossible for her to get that programme made without Channel 4?

    Ms Dorries

    Let’s do a shout-out for Channel 4. “Derry Girls”, “First Dates”, “Gogglebox”—there are so many fantastic programmes that Channel 4 produces. That is not in doubt and not in question. I would, however, suggest that the hon. Gentleman reads the “Up next” broadcasting White Paper, because in it we state clearly that carrying and making that distinctive content is a part of what we want to carry forward with Channel 4—distinctive British content, which is what “Derry Girls” is and what much of what Channel 4 makes is. That is in the White Paper, and I suggest he reads it.

    John Redwood

    Many fine British businesses have grown, flourished and invested far more once being privatised, and I hope that this one will too. But will the Secretary of State see, during the privatisation, whether there is a way of allowing the people who work for Channel 4 and do so much for it to gain participation, perhaps partly by buying and partly by gift, so that they become shareholders in whatever entity emerges?

    Ms Dorries

    I will go on to talk about the fact that we have many bidders who are looking at purchasing Channel 4, and we are looking at all options before we bring the matter to Parliament to see what is on the table. But for the sale of Channel 4, as it says in the “Up next” White Paper, what we are looking at is to sell Channel 4 as a PSB. Therefore, I do not think the model that my right hon. Friend outlines briefly would be conducive to that sort of purchase. We are going to sell to an organisation that will invest in Channel 4 and keep it able to make those distinctive programmes.

    Several hon. Members rose—

    Ms Dorries

    We are not getting into a discussion, and I am going to make some more progress. [Interruption.] I am happy to take interventions when I have made some progress.

    Secondly, we are committed to ensuring that all broadcasters are operating on a fair playing field, whether they have been around for a century or only entered the scene in the last few years, so we propose a new video-on-demand code that will hold Disney+, Netflix and other streaming services to similar standards as traditional broadcasters such as the BBC and ITV. These are crucial protections for all our PSBs, and ones that the broadcasters themselves have welcomed. With these changes and others, the Government are giving British broadcasters the support they need to rule the airwaves in times to come. As I said, dealing with the question of Channel 4’s future is a major piece of broadcasting reform, but it is just one part of our wide-ranging reforms.

    For the past year, I have been carefully considering the broadcaster’s long-term future, as many of my predecessors have done. Over the last four decades, it has been a Conservative Government who have taken the important decisions to nurture and protect Channel 4, allowing it to grow and to broadcast world-beating content. It was Conservative Margaret Thatcher who established Channel 4 in the early 1980s. It was a Conservative who gave it the remit to deliver original, disruptive programming and to focus on independent production at a time when it was most needed. It was a Conservative Government who strongly encouraged Channel 4 to broaden its horizons beyond London and oversaw the move to Leeds. Now, faced with the transformation of the broadcasting landscape, it is a Conservative Government who are preparing Channel 4 for the future.

    Mr Sheerman

    I have known the right hon. Lady a long time and I know she is passionate about skills. I am concerned because Channel 4 has been the bedrock of creative skills and innovation, going much wider than the people it actually employs. She knows about skills and she cares about them, so will she try to put my fears to rest?

    Ms Dorries

    In selling Channel 4 we are seeking to protect Channel 4 so that it continues to make distinctive British content and to function as a PSB, but when we sell it, the question will be: what do we do with the proceeds of the sale? Investing the proceeds in the skills of those who work in the broadcasting and film sector is part of the objective of the sale.

    Like every other broadcaster, Channel 4 now faces huge competition for viewers, for programmes and for talent, and many of its competitors have incredibly deep pockets.

    Ian Paisley (North Antrim) (DUP)

    The Secretary of State has outlined the legacy of what successive Conservative Governments have done to assist Channel 4. With that in mind, will she commit, under privatisation, to ringfencing and supporting the 81 essential jobs that Channel 4 has in Northern Ireland; to continuing, and growing, the £8 million contribution that Channel 4 makes to the gross value added of Northern Ireland; and to the production fund that has allowed the production of brilliant films and television series such as “Derry Girls” staying in place? Will that be protected, or will it all have to be negotiated again?

    Ms Dorries

    Levelling up is one of this Government’s primary objectives. We will be looking at bidders interested in purchasing Channel 4 to see whether they meet our levelling-up objective, which is about moving some of our major organisations and creating jobs outside London. That will be a consideration.

    Michael Fabricant

    Further to the last question, it is not just Channel 4; for example, it was Netflix that made “Game of Thrones” in Belfast, throwing in millions of pounds—far more than Channel 4, although I do not underestimate Channel 4’s importance.

    My questions are these. First, will my right hon. Friend set out in her speech that the contract for the sale of this public service broadcaster will set out certain minimum criteria—in other words, news content, regional content and British content? Secondly, is she aware that many production companies feel squeezed out by Channel 4 —[Interruption.] Oh yes, they feel that at the moment there is a cosy arrangement with some production companies while others are ignored by Channel 4, and those smaller companies would actually welcome a change at the top.

    Ms Dorries

    As someone who has worked in the industry, my hon. Friend is deeply knowledgeable about how Channel 4 and the industry works. As I said in a previous answer, “Up Next”, the broadcasting White Paper, makes it very clear that that distinctive British content that makes Channel 4 so successful is part of the criteria.

    The broadcasting White Paper is a fantastic piece of work, and I strongly recommend that everybody in the House reads it, as it makes it very clear what the Government’s objectives are for the broadcasting sector. Furthermore, we are taking the decision as a Government to look at broadcasting in the round—to look at the whole broadcasting landscape in the UK. I know that the conversation and the debate are focusing mainly on Channel 4, but we have to consider broadcasting in the round right now.

    In addition, Channel 4 faces a series of unique challenges—challenges that other public service broadcasters with different ownership models do not face. Streamers such as Netflix spent £779 million on UK original content produced in 2020, more than twice as much as Channel 4. While other PSBs, such as the BBC and Channel 5, have the freedom to make and sell their own content, Channel 4 has no inhouse studio. Its ownership model restricts it from borrowing money or raising private sector capital. It is left almost entirely reliant on ad revenues. Those revenues were already shifting rapidly online, and the competition is only set to heat up now that Disney+ and Netflix have confirmed their plans to enter the advertising market. In addition to that, we have, later this year, new, huge streamers coming into our homes, which will also, quite probably, be operating on an advertising model.

    Under its current form of ownership, Channel 4 has fewer options to invest, fewer options to innovate and, crucially, fewer tools with which to grow. There are serious challenges that require serious plans to overcome, not the kneejerk reaction or hyperbole of the Opposition.

    Alun Cairns

    Will the Secretary of State join me in calling on the Opposition to engage positively in this debate? We all respect the interest in the independent sector and we all want to see it grow, and it will have that opportunity under the new model. Rejecting any form of change will simply undermine the industries that we are seeking to support.

    Ms Dorries

    I could not agree more. Labour may not like to hear it, its refusal to even engage with the profound changes in the broadcast landscape is further evidence that it does not have a serious plan for broadcasting. If it really wants to protect Channel 4 and to protect the wider broadcasting ecosystem, it is not enough to consider only Channel 4’s current success.

    John Redwood

    Has my right hon. Friend noticed that the Opposition think that they know better than the audience what Channel 4 should show every evening? Is it not a good idea that we move to a model where the owners engage with the audience and try to grow the audience, because that way they will attract more revenue?

    Ms Dorries

    We agree on many things, and we agree on that.

    Michael Fabricant

    On a point of order, Madam Deputy Speaker. I may have inadvertently misled the House. I said that it was Netflix that produced “Game of Thrones”, but it was not. It was HBO and Sky Atlantic that invested a quarter of a billion pounds in Northern Ireland, considerably more than any other broadcasting company.

    Madam Deputy Speaker (Dame Eleanor Laing)

    I thank the hon. Gentleman, but that was more of an intervention; it was supposed to be a point of order. None the less, I am grateful to him for correcting the record so swiftly, so I thank him for his point.

    Ian Paisley

    Further to that point of order, Madam Deputy Speaker. As a matter of accuracy, would it not have been better if the hon. Member for Lichfield (Michael Fabricant) had confirmed that over £250 million is paid into film making in Northern Ireland annually without any of those companies?

    Madam Deputy Speaker

    I thank the hon. Gentleman for that point of order. I do not know whether that would have been better, because it is not a matter for me to comment on; it is an additional point of debate.

    Ms Dorries

    Our responsibility is to consider the long-term sustainability and future of Channel 4. As a responsible Government, we are prepared to acknowledge those challenges head-on, and to do what is needed to protect one of our most important public service broadcasters not just today, but in the years to come. We therefore believe that it is time to unleash Channel 4’s full potential—the hon. Member for Manchester Central (Lucy Powell) slightly misquoted me on that—and open up the broadcaster to private ownership while, crucially, protecting its public service broadcasting remit. That is a fundamental point: we are protecting its public service broadcasting remit. For those Opposition Members who are complaining and throwing up faux concerns, I repeat that we are protecting it as a PSB.

    A sale will allow Channel 4 to grow and access greater investment, meaning that it can create more great programming, made by people who live and work in the UK, without losing what makes it distinctive. Just look at another public service broadcaster, Channel 5. After its sale to Viacom, Channel 5’s overall content budget grew by, on average, 7% a year. It is my genuine belief that this much-needed, long-term investment and the associated risk that comes with it—because investment does not come without risk—should come from private ownership, rather than being borne by the taxpayer.

    Stephen Doughty

    The Secretary of State keeps on speaking about the broadcasting ecosystem. Of course, crucial to that ecosystem are the independent production companies. Channel 4 has invested in a number of such companies in my area of Cardiff and south Wales, so it is absolutely crucial to our creative economy. Analysis by EY suggests that her model would result in a 40% reduction in investment in that crucial regional supply chain. Does she not accept the very real risks to those crucial independent production companies, which are part of our broadcasting and creative infrastructure?

    Ms Dorries

    The impression given is that Channel 4, as a result of being sold, will cease to exist. That is not the case. Those independent production companies are actually overloaded with work. We made more films in the UK in the last quarter of last year than were made in Hollywood. This whole sector of broadcasting and film making is booming. We are selling Channel 4 so that it can have more inward investment, not taxpayers’ money, and so that it can make more content, not less. The work will continue for independent production companies, not least from many of the companies that are coming into the UK to make films and television content, just as in Northern Ireland.

    Our vision for Channel 4 is one where it continues to do all the things it does best, while being freed from the shackles that currently restrict it. I repeat: all the things it does best. That means it will continue to make diverse, interesting and edgy content with independent production companies, just as it does now.

    The Opposition motion talks about protecting Channel 4’s PSB remit. Anyone who takes the time to look at our proposals will see that they pose no threat whatsoever to that PSB remit—Opposition Members talk as if there is. Under private ownership, Channel 4 will still be required to commission a minimum volume of programming from independent producers—I hope the hon. Member for Cardiff South and Penarth (Stephen Doughty) heard that—just as all other PSBs are required to do. Under private ownership, we will maintain Channel 4’s existing obligations for regional production outside London and England, just as all other PSBs are required to do. Under private ownership, Channel 4 will still be required to provide original, innovative and educational programming that represents the breadth of society, as well as primetime news and current affairs—again, just as all other PSBs are required to do. Under private ownership—that is the rub here, is it not? The words “private ownership” are the nub of it. Under private ownership, we would also have the freedom to unlock Channel 4’s full potential by removing the publisher-broadcaster restriction, which the Labour party seems to want to protect, but which is the very restriction preventing Channel 4 from achieving long-term financial security. What company pays 100% for content but does not own the content? There is no other company that would regard that as a successful business model. The restriction effectively prohibits the broadcaster from producing and selling its content, denying it a crucial way to make money.

    I cannot imagine another company—I look for anyone in this House to reassure me—that would be able to survive by paying 100% of the cost of the business while owning none of the product.

    Damian Collins (Folkestone and Hythe) (Con)

    In Channel 4’s own response to the Government’s “Up Next” White Paper, it proposed raising £1 billion in private money through a joint venture partner, and that the joint venture partner would retain intellectual property and programming. The idea that the status quo is sustainable is not one that Channel 4 shares, and even it has called for a radical reset of its role.

    Ms Dorries

    It is exactly as my hon. Friend has outlined. The hon. Member for Manchester Central asked me what Channel 4 said, and one of its responses was that it wants to raise money. It wants to invest and raise money. The state—[Interruption.] Channel 4 is state-owned. The state cannot own a public service broadcaster that takes on the risk of borrowing money. If that goes wrong, it is the taxpayer who has to pay that debt. We as a Government cannot burden the taxpayer with risk, potential debt and responsibility.

    Removing the restriction will allow Channel 4 to do exactly what my hon. Friend the Member for Folkestone and Hythe (Damian Collins) says: to raise that revenue stream and improve its long-term sustainability. We can do all those things with a sale, while protecting all that makes Channel 4 unique. We are not looking for any old buyer for this broadcaster. We are looking for the right one—one who shares our ambition for the business and our belief in what makes it special. It is precisely because of what Channel 4 does, and how it does it, be that distinctive programming, news content or film, that we are confident that we will find the right buyer.

    Unsurprisingly, though it is early days, there has already been a lot of initial interest from a wide range of potential bidders. When a sale is secured, it will not just benefit Channel 4; we intend to use the proceeds to benefit the entire country. As I said, Channel 4 was originally established to help boost independent production, and it has been successful in that mission—so successful, in fact, that we face a new and very positive challenge. Production studios across the country are booming. They are so in demand that we need more and more people to work in them. We therefore intend to funnel some of the proceeds of the sale into addressing that new challenge and giving people up and down the UK the skills and opportunity to fill those jobs, delivering a creative dividend for all.

    As I have to keep reminding those who choose to ignore it, the sale of Channel 4 is just one crucial part of a much larger piece of broadcasting reform, and the question of Channel 4’s long-term sustainability is—[Interruption.] The accusation is being thrown at me from a sedentary position that I am going to get rid of the BBC. It is not good enough to invent accusations from the Front Bench. Commentary has to be based on what the Government are actually proposing and what is actually happening. [Interruption.] Okay, so we did freeze the licence fee—yes. In this environment, that is a cost of living saving. There is absolutely no way, in today’s environment, that we could go to the country and ask individuals to pay for an increase in the BBC’s licence take. I am absolutely amazed that Opposition Front Benchers think that would be an acceptable thing to do, when hard-pressed families are struggling to pay their bills—[Interruption.]

    Madam Deputy Speaker (Dame Eleanor Laing)

    Order. The shadow Secretary of State must stop shouting at the Secretary of State from a sedentary position. If she wants to make a point, she should get up and intervene. I cannot hear what the point is. I can hear the Secretary of State’s answer, because presumably she can hear the hon. Lady, but nobody else can. That is why we debate properly in here by standing up and making a point, not shouting like football supporters—[Interruption.] I withdraw that. I am not criticising any group in society; I am just saying that it is unacceptable.

    Lucy Powell

    Perhaps the Secretary of State will give way on that point, then, Madam Deputy Speaker.

    Ms Dorries

    The question of Channel 4’s long-term sustainability is hardly a new challenge. I am not the first Secretary of State to seriously consider whether private ownership is ultimately the best way to protect one of our best-loved broadcasters, but I am the only one who is prepared and willing to act and do what is right, not just for Channel 4 but for British broadcasting and ultimately the British taxpayer.

  • Lucy Powell – 2022 Speech on Channel 4 Privatisation

    Lucy Powell – 2022 Speech on Channel 4 Privatisation

    The speech made by Lucy Powell, the Labour MP for Manchester Central, in the House of Commons on 14 June 2022.

    I beg to move,

    That this House supports the UK’s much loved cultural institutions, which are celebrated around the world while creating jobs and growth across the country; in the Jubilee year supports world-renowned British broadcasting which brings the country together in celebration; believes that the Government should reverse its decision to sell Channel 4 as it will undermine the UK’s world leading creative industries and the delicate ecosystem of companies that support them; and calls on the Government to ensure that, if the sale does go ahead, Channel 4’s headquarters continue to be based in Leeds and its remit ensures that it continues as a public service publisher-broadcaster, commissions over 50 per cent of its content outside London, continues its significant investment in new independent British films and funds quality news content which is aired at prime time.

    I refer Members to my entry in the Register of Members’ Financial Interests, as I was a guest of Channel 4 at the recent BAFTA awards and at a recent rugby league match, where I also met the Secretary of State for Digital, Culture, Media and Sport.

    We wanted to have this debate today because, despite the Government publishing a White Paper and declaring their intention to sell off Channel 4, there has been little parliamentary scrutiny, and what there has been has exposed quite widespread opposition. Being the generous person that I am, I thought I would give the Secretary of State the chance to lay out her compelling arguments and win over the House today. Perhaps things might go a little worse than that, but we will see.

    In all seriousness, the arguments to sell off Channel 4 to what will likely be a large US media company are at best thin, while the case for nurturing and retaining all that is great about this unique British broadcaster is very strong. First, it is ironic that the self-declared party of Brexit is now uprooting, undermining and selling off great British institutions and assets at fast pace. Is that what putting British interests first is all about? Channel 4 is just one of many; the BBC and others will follow.

    As the nation came together last week to celebrate the jubilee, we were again reminded of the important role our national broadcasters play in bringing the country together and projecting ourselves around the world. Making great TV and film is one of the things Britain is seen as a world leader in, one of our greatest exports and a reason why English continues to be a world language. From “East Is East” to “Everybody’s Talking about Jamie” to “Trainspotting”, British film is known and loved around the world. Selling off one of our broadcasting jewels in the crown in a jubilee year is not just the wrong thing to do as a patriot or for nostalgic reasons; it is also really bad for our world-renowned creative economy.

    The foundations on which our global success is built come from our unique public and private, small and large landscape, which puts Britain at the top of the tree when it comes to TV and film.

    Sir John Hayes (South Holland and The Deepings) (Con)

    I agree with the hon. Lady about Channel 4 and its role in film in particular, but surely she will acknowledge that we need a plural system, and that private investment and engagement is critical to that plurality. Furthermore, will she confirm that, should Channel 4 be sold off, she would renationalise it? Is that Labour’s policy?

    Lucy Powell

    We have a very plural system. The argument that I am making is that private and public play different roles in that important ecosystem, but I hope that the House will today agree with my motion to stop the sell-off; I am sure it will.

    Channel 4, like the BBC, is fundamental to the foundations of our global success in TV and film. We flog it off at our peril. Its broadcaster-publisher model has given rise to many of our most successful production companies. That was Margaret Thatcher’s original idea. It was a good one—and I do not say that very often. Without its ability to take risks, attract different audiences, and invest in programmes and films that can seem like loss leaders, our creative economy would be all the more bland and mainstream.

    Marsha De Cordova (Battersea) (Lab)

    My hon. Friend is making an excellent speech. Does she agree that Channel 4 reaches audiences that other outlets struggle to reach, and produces content that attracts a diverse audience, including the takeover day commemorating the anniversary of the killing of George Floyd and the excellent coverage of the Paralympics? Does she worry, as I do, that selling off Channel 4 would hinder that kind of programming?

    Lucy Powell

    I could not agree more. My hon. Friend makes some excellent points, some of which I will turn to later in my speech.

    John Redwood (Wokingham) (Con)

    Does not the hon. Lady see the opportunity that could be provided by a new private owner or owners, who could contribute a lot of new ideas, innovation and extra money to transform the channel for the better? Why is she always so pessimistic about any new idea?

    Lucy Powell

    I do not know why the right hon. Gentleman thinks that large American media companies are more innovative than small, British-made institutions such as Channel 4, which has been innovating for the 30 or 40 years since Margaret Thatcher invented it. He might want to rethink his point. We are not known for the blander, more mainstream content that would come from the sell-off. That is not how our success has been built. Creativity means actually being creative.

    Alex Sobel (Leeds North West) (Lab/Co-op)

    My hon. Friend is making an excellent speech. I have many constituents in Leeds who work at Channel 4, but even more who work for independent production companies. Kay Mellor, the founder of Rollem Productions, recently passed away. Great creative talents such as Kay Mellor would not have been able to come forward without support such as the £221 million that Channel 4 invested in independent production in 2021. We need more Kay Mellors and more Rollems, not fewer as a result of US imports.

    Lucy Powell

    My hon. Friend makes a really good point. I will come on to some examples in my speech.

    Secondly, Channel 4 unashamedly supports British jobs and the British economy. The UK’s creative industries are one of our biggest and fastest-growing sectors, contributing more to our GDP than aerospace, automotive, life sciences and energy put together. With the UK’s creative industries growing at four times the rate of our economy as a whole, most other countries are looking to create home-grown companies of the kind that our Government are actively undermining. In an era of stagnant growth, when Britain needs to win the global race for jobs of the future, why are we looking to sell off a critical part of our creative ecosystem?

    Channel 4’s public service remit is integral to this success. It is a driver of levelling up in the creative industries, which have all too often been focused in London. With more than half its commissions outside London, and with headquarters in Leeds, Channel 4 supports thousands of jobs in Yorkshire and across the nations and regions. Film4 has built on Halifax’s success to make it a world-leading hub in film.

    Michael Fabricant (Lichfield) (Con)

    Does the hon. Lady not recall that Channel 4 was dragged kicking and screaming into moving its headquarters outside London? Has she not visited Leeds and has she visited London? Does she seriously think that Leeds can be called the headquarters of Channel 4 when most of the senior management are still firmly anchored in London?

    Lucy Powell

    So the hon. Gentleman now thinks that Channel 4 is not important to Leeds. Perhaps he might want to take up the issue with Leeds MPs and Leeds constituents, who take a very different view. They support what Channel 4 is doing in its levelling-up agenda, which is evident for all to see.

    Channel 4 supports skills and widens access to the industry. At a time when employers are crying out for talent and people across the country are looking for jobs, Channel 4 is supporting thousands of young people and apprentices each year. The Secretary of State has said that her defining mission is

    “ensuring that everybody from every background has access to the arts”,

    so why is she undermining an important access driver in this way? Thanks to its unique publisher-broadcaster model, Channel 4 invests half a billion pounds a year on average in the independent production sector. That has helped to grow and start many of our most successful production houses.

    Alun Cairns (Vale of Glamorgan) (Con)

    The hon. Lady refers to spending on original content. In 2006, it was £516 million; by 2020, because of the fall in advertising income, it had fallen to £329 million. Does she accept that the current model of Channel 4 cannot survive and that it needs reform?

    Lucy Powell

    No, I do not. This year, it is the most profitable and successful that it has ever been, so I think the right hon. Gentleman’s figures are wrong.

    Hilary Benn (Leeds Central) (Lab)

    Not only do Labour Members oppose this proposal, but there is a great deal of concern about it among Conservative Members. It seems to have more to do with ideology than with practicality.

    Leeds has been really proud to host Channel 4’s presence in our city. We worked very hard to win the competition and bring it to Leeds. If the proposal goes ahead, will there be any guarantee whatever that the new owners, whoever they are, will keep a significant Channel 4 presence in Leeds? I fear that they will shut it down and go somewhere else.

    Lucy Powell

    My right hon. Friend is absolutely right. There is no guarantee whatever.

    Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op) rose—

    Lucy Powell

    Cardiff is another hub for the media, so I give way to my hon. Friend.

    Stephen Doughty

    I totally agree with my hon. Friend’s points. She is right that Cardiff is a huge hub for the creative industries; Channel 4, alongside many other media companies, has invested in our industry locally.

    Does my hon. Friend agree that through its public sector remit, Channel 4 has been very successful in telling stories from across the United Kingdom about subjects that others have not been willing to address? As a vice-chair of the all-party parliamentary group on HIV and AIDS, I particularly commend its work on “It’s a Sin”, which told the story of the HIV/AIDS epidemic from a British perspective. It tells stories from all parts of the UK and from communities that have been under-represented.

    Lucy Powell

    My hon. Friend makes an incredibly powerful point that I fully support.

    Film4 is also a global success story that costs the taxpayer nothing. It invests £25 million each year in British independent film. That is around one third of the total UK investment. By intervening particularly in the development stage, Channel 4 supports bold, risky films, and losing Film4 would be devastating for our leading edge in British film.

    Perhaps this is why the industry and the public are so opposed to Channel 4’s privatisation. According to the Government’s own consultation, 96% of people are opposed to it. Even when the 38 Degrees responses are taken out, it is still only 5% of people who are in favour. Throughout all the stakeholder engagement I have done since starting this job, I have found exactly what the Government consultation has found, which is that not a single person across the sector thinks this is a good idea. I am sure we will hear from the Government today that all these good things can continue and that they are actually doing Channel 4 a favour by freeing it up, but I think the Government have made promises they cannot keep, whether on funding British-made content, investing in the regions and nations or continuing high-quality news and current affairs.

    Whenever Ministers are challenged on how the benefits of Channel 4 will continue, all we hear is, “Don’t worry, we’ll put it in the remit.” What we know from the White Paper so far, however, suggests that the Government will remove the publisher-broadcaster model and instead require Channel 4 simply to meet a 25% quota, which would be significantly lower than the 100% it does today. On levelling up, the Government are promising only 35% of production outside London and 9% outside England. This is a dramatic cut to the current levelling up budget. As my right hon. Friend the Member for Leeds Central (Hilary Benn) has just said, the new remit will not include any commitment to keep the headquarters in Leeds or any obligations to training and skills.

    Mr Barry Sheerman (Huddersfield) (Lab/Co-op)

    Can I make a point from a West Yorkshire point of view? Is my hon. Friend aware that we in the north are proud that over in Manchester and Salford we have the BBC hub, and that over in Leeds we have Channel 4? They are the anchors and foundations of the creative sector, creative skills and a real culture that will be destroyed if a flagship organisation such as Channel 4 is lost.

    Lucy Powell

    Absolutely, because it’s great up north, isn’t it? It is not godforsaken. I think that was the word somebody else used.

    Ben Bradley (Mansfield) (Con)

    Will the hon. Lady give way?

    Lucy Powell

    I am not going to give way any more. I think the hon. Gentleman is down to speak later anyway.

    The Government seem to think that the year-on-year investment Channel 4 makes across the country can be replaced with one-off grants raised from the sale. It is surely the opposite of conservative ideology—whatever that means these days—to replace business investment with Government handouts. I just do not get it.

    Ben Bradley

    Will the hon. Lady give way?

    Lucy Powell

    Okay, if the hon. Gentleman wants to come in on that point. This is my final giving way.

    Ben Bradley

    The hon. Lady is very generous. I do not understand the pessimism. She and other Opposition Members have talked about all of this disappearing, but nobody has suggested it will disappear. She said herself that the sector is growing four times faster than the UK economy, but Channel 4 is not. The part of the sector that is growing is the privately owned part of the sector, where the investment is coming in. What evidence does she have that any of this would disappear?

    Lucy Powell

    As I am going on to say, many of these things will disappear. Channel 4 occupies a very important part in the ecosystem, and all parts of the ecosystem feed one another. The reason that some foreign investors come here is that we have Channel 4 and the BBC producing the talent pipeline and the kind of risky, edgy content that they themselves would never produce.

    Despite Channel 4’s crucial role in British film, which the White Paper recognises, the Government are making no commitment to ensure that a privatised Channel 4 would continue that investment, or even to the future of Film4 itself. The White Paper also says that Channel 4 is and will remain a public service broadcaster. However, that completely unravelled when the Secretary of State told the Select Committee recently that this would expire after only 10 years. To a big foreign media buyer, this 10-year pledge is fairly trivial and worth weathering in order to get beyond it, when it would be a case of anything goes. If the Secretary of State and her colleagues agree that at the very least all that makes Channel 4 great should be permanently enshrined in its new remit, they should support our motion.

    As well the claim of pretending we can keep everything that is good about Channel 4, I want to address some of the other claims I have heard Ministers make. The Culture Secretary says she wants to set Channel 4 free so that it can raise investment, because it is not financially sustainable and is a burden to the taxpayer. However, Channel 4 does not cost the taxpayer a penny, yet retains the benefits of public ownership, such as British values, British jobs and British content for British audiences, especially young and diverse audiences. In fact, it is in rude health both creatively and financially, making a profit of £75 million last year, which has all been ploughed back into British content, skills and talent. Channel 4 does not need a taxpayer bail-out, it is not a broken financial model and it does not need privatising to continue to flourish.

    Next, we hear that the sell-off of Channel 4 is necessary so that it can escape the straitjacket of being kept in public hands and can compete with Netflix. Channel 4 is free to make commercial and editorial decisions without Government or shareholder pressure. That means taking risks on shows such as “Gogglebox” and “It’s A Sin”, or initiatives that do not in themselves have a financial return, but have a significant public good, such as the Paralympics or Film4. Can the Secretary of State tell us what she wants to free Channel 4 from in order to be able to do what it cannot do already?

    If the Secretary of State’s Netflix comparison is about competing for subscribers, then she is wrong on that too.

    Colum Eastwood (Foyle) (SDLP)

    Will the hon. Lady give way?

    Lucy Powell

    I will not give way; I am going to make some progress.

    Unlike Netflix, which is seeing the number of its subscribers going down, All 4 is a highly successful free streaming service, generating 1.25 billion views in 2021, with eight out of 10 young people in the UK registered to it. Global streamers produce content to appeal to the widest possible global audience, but Channel 4 produces distinctive and diverse British content that reflects this country’s social and cultural landscape. The Secretary of State’s sell-off will mean less British-made content and representation. Finally, if she wants Channel 4 to be free to compete with the likes of Netflix, Amazon or Disney, why is she offering those companies a chance to buy it?

    The Secretary of State also says that the age of linear television is dead and linear advertising is going down with it. However, advertisers are against her plans too, as they know it will mean less choice and less competition without the unique audience reach that Channel 4 currently offers. The big winners will yet again be the likes of YouTube that compete for young audiences and will gobble up the advertising opportunities that disappear from Channel 4.

    There are basically two options for a buyer if the Government go ahead: either the channel will be bought by a UK broadcaster such as ITV—and the sale may well not be allowed to go through on competition grounds, as it would lead to over-dominance on advertising, driving up prices up and lowering choice—or, which is more likely, Channel 4 will be bought by one of the big US media giants. In that event, rather than investing in British programmes for British audiences, Channel 4 would become a shop window for the buyer’s existing content. This is a policy that sells off a great British asset to the benefit of the big US tech giants in more advertising revenue and to the big US media giants in economies of scale. That is a great policy, is it not? It is really patriotic; I am not sure why I didn’t think of it myself.

    Finally, the Secretary of State says there is no alternative, but she and I both know there is. Channel 4 has set out a proposal that maintains public ownership while delivering even greater public benefit and putting Channel 4 in a stronger financial position. However, she has ignored it, because she is hellbent on selling off the channel because she thinks it is a bit left-wing.

    Robin Millar (Aberconwy) (Con)

    It’s a lot!

    Lucy Powell

    Yes, well, it may be, but I do not think it is. [Interruption.] No, I think the hon. Gentleman has let the mask slip on his own side, because Conservative Members do think Channel 4 is a bit left-wing, which is why they are selling it off.

    The truth is that the Secretary of State has misunderstood where Channel 4’s true value comes from and the important distinctive role it plays in the wider economy. That is why Margaret Thatcher invented it, and that is why many Conservative MPs and peers oppose this. The Culture Secretary might not want to hear it, but this is what some Conservatives have to say about her proposal: the “opposite of levelling up,” “very unconservative” and

    “an unnecessary and provocative attempt to address a political non-issue during a time of crisis, at significant cost to the independent UK film and TV industry.”

    I would say they are as brassed off as the rest of us. [Interruption.] Some Members got that cultural reference.

    We know the Culture Secretary does not like Channel 4, and she has said that it does not do itself any favours. Her sell-off has no support in the country, no support in the creative industries, no support from other broadcasters, no support from advertisers and very little support in Parliament. The big winners from her policy will be the big US tech and media companies; the losers will be British creative jobs outside London, British independent film, British independent production companies and Britain’s creative economy.

    This cultural vandalism does not get modern Britain and does not understand how best to grow the British economy. That is why I urge the House to support our motion today.

  • Lucy Powell – 2022 Speech on the Champions League Final in Paris

    Lucy Powell – 2022 Speech on the Champions League Final in Paris

    The speech made by Lucy Powell, the Labour MP for Manchester Central, in the House of Commons on 6 June 2022.

    I thank my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) for securing this urgent question and for his powerful testimony of his experience.

    The champions league final last Saturday was chaotic, scary and atrociously managed. Before the match, huge queues formed, as most turnstiles were closed. Police tear-gassed and pepper-sprayed fans who were waiting patiently. Fans were targeted by local criminal gangs as police stood by. Many never even got in, or left for fear of their children’s safety. To add insult to injury, the authorities immediately blamed English fans; they said that Liverpool supporters turned up late with fake tickets. The crushing outside the ground and the response—blaming fans—brought back the trauma of Hillsborough. British supporters have been mistreated and wronged. It is up to the Government to establish the facts and ensure that lessons are learned.

    This is now the third major UEFA event in less than two years to come close to an even more serious incident. Has the Minister established why UEFA got things so wrong and why it took until Friday to apologise? Questions also remain over UEFA’s independent review, as the chair is a close friend of the president of UEFA. Will the Minister ensure that it gets to the truth and holds those responsible to account?

    UEFA has now at least apologised, but the French authorities remain entrenched. What will the Minister do to get his counterpart to apologise and understand that they were in the wrong? France is due to host the rugby World cup and the Olympic games. Does the Minister agree that the French authorities’ handling of the final puts in doubt their ability to host such events in the future?

    Finally, what happened in Paris reminds us once again that justice and lessons learned from Hillsborough still have not happened. When will the Government enact the Hillsborough law and respond to Bishop James’s report?

  • Nigel Huddleston – 2022 Statement on the Champions League Final in Paris

    Nigel Huddleston – 2022 Statement on the Champions League Final in Paris

    The statement made by Nigel Huddleston, the Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport, in the House of Commons on 6 June 2022.

    On 28 May, Liverpool football club played Real Madrid in the final of the champions league. The fixture was held at the Stade de France in Paris, and on this occasion Real Madrid won the match 1-0. It is not the result that makes the fixture worthy of debate, but the spectator experience.

    The start of the fixture was delayed due to a number of crowd safety issues outside the ground. Those issues prevented safe and timely access to the stadium for many thousands of Liverpool fans. Members across the House will, like me, have been appalled to hear of the terrifying and potentially dangerous conditions experienced by many Liverpool fans. In fact, we all saw the visuals on social media. What should have been a celebration of the pinnacle of European club football will be remembered for all the wrong reasons. I am shocked and concerned by what has come to light.

    I welcome the fact that, as the Secretary of State and I—and many hon. Members—requested, UEFA has commissioned an independent investigation, and issued an apology to fans who attended the final. The French Sports Minister has also commissioned a review of the delivery of the event, and I will be discussing that with her later this week. The French Government will also be supporting the UEFA investigation. They have called for sanctions against any police officers who misused tear gas and confirmed that they will pursue compensation for fans who had a valid ticket but were unable to enter the stadium.

    UEFA has confirmed that it will launch a new complaints procedure for fans to present evidence, and Liverpool FC is collating fan experiences, via its website, to contribute to the UEFA investigation. I urge fans to send accounts of their experiences to the club. The Department for Digital, Culture, Media and Sport will continue to work closely with the relevant authorities and Liverpool FC.

    The footage and accounts from Liverpool fans and the media on their entry to the Stade de France on 28 May have been deeply upsetting. Thousands of Liverpool fans travelled to Paris in good time to support their team in one of the biggest matches of the season, and we are hugely disappointed by how they were treated. Fans deserve to know what happened, and it is absolutely right that the relevant authorities are now fully investigating the events. The investigations must establish the facts so that the authorities can learn lessons from the event and ensure that we do not see scenes like that ever again.

    Ian Byrne

    I was there last Saturday in Paris. I was also there at Hillsborough in 1989. I can say, without any shadow of doubt, that if it was not for the magnificent efforts of the Liverpool supporters last Saturday, we could have had a disaster worse than Hillsborough. Last Saturday in Paris, I witnessed first hand shambolic stadium management and the most hostile policing environment at a sporting event I have ever seen. I watched children getting pepper-sprayed, pensioners getting tear-gassed, and turnstiles and exits shut while thousands queued for hours waiting to attend the blue riband football occasion of the season. We were treated like animals for wanting to watch a game of football. Then, shamefully, the smears and lies, straight from the Hillsborough playbook, were used by the authorities to avoid accountability for the horrific events. Never, ever again should this be tolerated, in this country or around the globe. Enough is enough.

    Will the Minister confirm whether the Government will make representations to UEFA, following the calls of Liverpool football club, Real Madrid football club and the Liverpool supporters trust, for a full and truly independent inquiry into the events at the Stade de France, which could easily have cost the lives of UK citizens? Will he also call on the French Government and UEFA to retract the attempts to smear Liverpool football club supporters without any verifiable evidence to substantiate the claims, and will he engage with his French counterpart to ensure that UK citizens, including many children, are never, ever treated with such brutality and force by French police for simply attending a football match?

    Nigel Huddleston

    I thank the hon. Member for raising all those points. I appreciate his dedication to all things football and his expertise in the area; I understand he was one of the founders of Spirit of Shankly and he speaks wisely on these issues—always in support of fans. I think the whole House will be making that point clear today.

    We have regular dialogue with UEFA, including discussing the plans for the women’s Euros this year; we also have a bid in for future events. Both I and officials will raise the issues outlined by the hon. Gentleman, including when I speak to the French Sports Minister this week. The immediate response from certain people was unfortunate. There seemed to be a bit of a knee-jerk reaction that was not necessarily based on the facts. Of course, what we have all seen is what appears to be considerably disproportionate behaviour on behalf of some people and entities of which we would expect more.

    I am confident that there will be a thorough review, which must be transparent. I do not want to pre-empt its conclusions, but I hope that all the information will be gathered. I repeat: if any fans have evidence—experience, footage and so on—they should please send it to Liverpool FC. I look forward to seeing the results of the investigation. We will be keeping a close eye on developments, as, I am sure, will the whole House.

  • Paul Scully – 2022 Speech on the Hospitality Industry in Liverpool

    Paul Scully – 2022 Speech on the Hospitality Industry in Liverpool

    The speech made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 6 June 2022.

    I congratulate the hon. Member for Liverpool, Walton (Dan Carden) on securing today’s important debate.

    Nationally, the hospitality sector is a really big deal. It employs about 2.4 million people across 167,000 businesses, and it generated revenues of about £83 billion last year. However, as MPs who care about the prosperity and the wellbeing of our constituents, we all know that hospitality is even more important, as the hon. Member has said, at a local level. Hospitality is important for its contribution to our local economies and communities, providing accessible jobs and the social spaces that people need.

    I was in Liverpool a few months ago, and I really saw how the city has changed in leaning more towards tourism and hospitality. The projects it has there are really exciting, as indeed are its plans for “Liverpool Without Walls” to try to bounce back after the regional lockdowns are really innovative. I hope that it continues to lean into hospitality in that way, because it is really important for the colour and the vibrancy it brings to our high streets and in helping to showcase the rich diversity of British society, our culture and, indeed, our heritage. It is important for levelling up because everyday high street businesses such as hospitality, retail and personal care are the foundation on which strong local economies and communities are built.

    Over the course of the pandemic, I worked closely with the hospitality sector, listening to its concerns and representing its interests across Government. That engagement helped to shape the Government’s business support package and ensured that as many businesses as possible had access to some form of support. Overall over that period, the Government provided £408 billion of support, including furlough, grants, loan guarantees, regulatory easements, cuts in VAT and business rates, and a moratorium on commercial rent recovery. That support provided a lifeline for many businesses. We all hoped that once the covid restrictions were lifted and businesses were able to operate more freely, we could look forward to a period of recovery, but as we have heard, an increase in global energy prices and the war in Ukraine has made that recovery even more challenging.

    The hon. Member for Liverpool, Walton talked about Byrnes fish and chip shop. I have talked a lot about the headwinds that our economy and our businesses face. Fish and chip shops—real stalwarts of the British hospitality scene—face those headwinds probably more than any hospitality business at the moment, because, as the hon. Gentleman mentioned, clearly a lot of vegetable oil and rapeseed oil comes from Ukraine, hence the colours in its flag. A lot of the cod and white fish—I think about 50% or so—that we consume in this country comes from Russian seas. A lot of flour, from wheat, also comes from that part of the world. We are indeed paying the price for freedom. With the headwinds I have talked about, our fight against Russian aggression in Ukraine comes at a cost to our economy. Byrnes, which I think is a fourth generation family-run business, has gone through a lot; I really hope it remains for many generations to come.

    I continue to work closely with the sector. I am still listening and representing its interests, and we continue to provide support. The Chancellor obviously needs to strike the right balance between helping businesses and the families that are most in need, while at the same time continuing to restore the public finances to ensure that we have resilience. The hon. Gentleman talked about food banks, families and individuals. Clearly that is why the Chancellor continues to flex and respond, and has announced £37 billion of support to date—it is coming over the next year—to tackle the energy price situation and other pressures on family finances.

    In the autumn Budget, the Chancellor announced reforms to the business rates system worth £7 billion over the next five years, including a new temporary relief for retail, hospitality and leisure businesses worth almost £1.7 billion in 2022-23. In the spring statement, the Chancellor cut the cost of employment for half a million small businesses by increasing the employment allowance from £4,000 to £5,000. As a result of that announcement, 670,000 business will not pay national insurance contributions and the health and social care levy at all.

    We have introduced legislation to ringfence covid-related rent debt, and to establish a new binding arbitration process to help tenant businesses and their landlords to reach amicable settlements. Our help to grow scheme is supporting businesses to increase productivity, grow their businesses, and access discounted software and free advice.

    The Queen’s Speech set out our plans to bring forward legislation to make permanent some of the temporary regulatory easements that we introduced during the pandemic, including pavement licence easements that provide businesses with greater flexibility to trade and help to create the vibrant, bustling outdoor spaces needed to encourage people back to our high streets again, some great examples of which I saw on my visit to Liverpool.

    We recognise the impact of rising energy prices on businesses. Both the Government and Ofgem are in regular contact with business groups and suppliers to understand the challenges they face, and explore ways to protect consumers and businesses.

    In July last year, we published the first ever hospitality strategy, which set out our ambition for the recovery and future resilience of the sector. We produced that strategy because covid highlighted the fact that hospitality businesses right across the country needed resilience. The sector is characterised by high fixed costs and low margins, so it is not necessarily in a strong position to adapt to new shocks and challenges, including longer-term challenges that businesses face, such as climate change.

    We have also established the Hospitality Sector Council, which will oversee the delivery of the strategy. Kate Nicholls, whom the hon. Gentleman mentioned, sits on the council and chairs some of its sub-groups. The council has established thematic working groups to consider issues including access to finance, the role of hospitality in local economies and communities, hospitality careers and skills, environmental sustainability and international trade. The working groups will bring forward recommendations and highlight examples of good practice that will help to provide the best possible trading environment for hospitality businesses and ensure that the sector is fit to face any future challenges head on. The Government will not just be telling hospitality businesses what to do; hospitality businesses and the Government will co-create the solutions.

    I mentioned that hospitality has an important role to play in levelling up. More than that, it can have a transformative effect, particularly in deprived areas. It was really interesting to hear about the Homebaked bakery’s initiatives, which sound great—I know that they will play a major role in the area that the hon. Gentleman represents. When I was in Birmingham only a couple of weeks ago, I saw the Digbeth dining club and the Aston Villa Foundation to learn about their great work regenerating the areas of Birmingham in which they operate, using street food as the driver and providing training and qualification for local people who want to start their own street food businesses.

    Effectively, that is the blueprint for hospitality-led regeneration, which was one of the commitments in our hospitality strategy. Near the hon. Gentleman’s constituency, Sefton Council is delivering the first pilot in Bootle. When I visited Sefton Council last October, I was excited to hear about its plans to transform the Strand shopping centre, create an incredible events space in the centre of Bootle and deliver training and qualifications for local people so that they can fully contribute to the regeneration of their town.

    The hon. Gentleman spoke about qualifications, including T-levels, which cover catering and will play a huge role in the future of hospitality, along with wider training. I visited Hugh Baird College in Bootle, which will support Sefton Council by providing hospitality training, allowing local people to take advantage of the new jobs and businesses that the regeneration project that I outlined will deliver. Given all that, perhaps it is not surprising that I am passionate about the sector.

    I spoke about the £37 billion of support that we are providing to individuals, especially the lowest paid and those who are most vulnerable to changes in energy prices and food prices. It is really important that we look to grow the economy overall, ensuring that people can take on more hours and fill the record number of vacancies in our very tight labour market, because that is the best way to face down the cost of living situation.

    I congratulate the hon. Gentleman again on securing today’s important debate. Hospitality has always been at the heart of Liverpool, especially over the past few years with the legacy changes since it was the city of culture. I always welcome the opportunity to talk about hospitality, a sector that I am particularly passionate about. It is easy to take hospitality for granted: it is always there in the background, supporting us when we need it, but covid showed us what it would be like to live without it. We missed it; we cannot take it for granted. There are undoubtedly difficult times at the moment, but the creativity and the adaptability—

    Dan Carden

    I am grateful to the Minister for responding to the debate. I want to take the opportunity to emphasise again that the potential short-term impact of spiralling prices and high inflation this year puts many businesses—many restaurants and cafés—at risk of closure. Will he keep his eye on the ball with regard to businesses that are closing and what needs to be done?

    Paul Scully

    Absolutely, I will. We do not want—the Chancellor in his response, from the spring statement to the other changes and the Budget, does not want—to bring in measures that are in themselves inflationary and could add to the problem in the longer term. Clearly, however, we want to make sure that we can always flex to support as many businesses as we can.

    During a lot of covid, when we were gripping the economy so hard, insolvencies were at a 40-year low. We will not be able to solve every problem now—the Government never can—but I will absolutely keep my eye on the ball to make sure that, as I say, we work with the sector to co-create those solutions so that we can tackle as many problems and cover as many businesses as we can. The hospitality sector continues to show real creativity and real adaptability, particularly over the past two years, and that gives me the confidence that it will recover and thrive.