Commons Sense

House of Commons · Westminster Hall

Live Events: Government-backed Insurance

23 March 2021 · 6 other contributors · 11,329 words

Opened by Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

Responding minister: Caroline Dinenage

EconomyCulture, Media & SportBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Jamie Stone raised concerns about live events: government-backed insurance in Westminster Hall. A government minister responded.

Key points

  • Mr Jamie Stone is concerned about the economic impact of live events not returning due to a lack of government-backed insurance schemes.
  • Mr Stone notes that live events contribute 70 billion annually to the British economy, with the Edinburgh Festival Fringe generating 500 million in direct spending and 560 million indirectly for Scotland's economy.
  • Mr Stone asks the Government to underwrite insurance schemes for live events, arguing it would be an investment rather than expenditure given the significant economic returns from such events.

Key requests to Government

Mr. Stone asks the Government to underwrite insurance schemes for live events, arguing it would be an investment rather than expenditure given the significant economic returns from such events. He questions why the Government is reluctant to put money behind their easing of restrictions and road map towards recovery when they are confident in these measures.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

Mr. Jamie Stone is concerned about the economic impact of live events being unable to return due to a lack of government-backed insurance schemes. He highlights that the creative industry contributes £13 million per hour to the British economy, with live events contributing £70 billion annually. The Edinburgh Festival Fringe alone generates £500 million in direct spending and £560 million indirectly for Scotland's economy. Mr. Stone also notes that Highland games contribute an estimated £25 million to local economies, providing a critical economic boost to rural areas.

Other contributors (6)
  • Alison McGovern Lab Birkenhead

    The MP thanked the hon. Member for Caithness, Sutherland and Easter Ross for bringing forward this debate. She highlighted that live events are crucial to the UK economy and expressed concerns over structural inequalities impacting younger people and previously deindustrialised areas. The MP asked why a Treasury Minister is not addressing the issue directly.

  • Bob Seely Con Isle of Wight

    Festivals on the Isle of Wight are crucial for the local economy, employing hundreds or thousands of people and supporting various supply chains. Bob Seely supports Government-backed insurance as it provides confidence to festival organisers during uncertain times. He believes that a pooled reinsurance scheme could be beneficial in kickstarting the arts and entertainment industry.

  • Kevin Brennan

    Kevin Brennan highlights the economic impact of live music events like Ed Sheeran's performances at the Principality Stadium, stressing the need for clarity from the Government on their ability to underwrite insurance for such events. He criticises the lack of certainty provided by the culture recovery fund and calls for a similar scheme to support the theatre sector, noting that other countries have implemented such measures. The hon. Member inquired whether the Government has looked at insurance schemes implemented by other European countries, particularly Germany, to support live events. He questioned if there might be delays due to cherry-picking sectors for insurance indemnity.

  • Pete Wishart SNP Perth and Kinross-shire

    Mr Wishart expressed concern about the live music industry's vulnerability to social distancing measures during the pandemic. He highlighted the lack of clarity regarding future events and emphasized the need for Government-backed insurance schemes to support festivals and concerts, which could unlock economic benefits worth over £2 billion.

  • Sarah Olney Lib Dem Richmond Park

    Expressed concern about the risk and uncertainty surrounding live events this summer due to the pandemic. Emphasised the cultural and economic importance of live events, noting their role in supporting jobs, particularly seasonal work for young people and opportunities for entrepreneurs. Highlighted potential losses in skills and pipeline within the creative industries if support is not provided.

  • Steve Brine Con Winchester

    The festival industry in the UK generates around £1.75 billion to £1.8 billion annually and supports approximately 85,000 jobs. The lack of a Government-backed insurance scheme poses significant risks due to uncertainties about lockdown easing and lack of working capital for festivals. Steve Brine emphasised that without an insurance solution, many independent festivals cannot proceed with planning. He also highlighted the need for immediate action as it is almost too late for 2021. The hon. Member argued that supporting the live events sector could reduce reliance on other support schemes by saving businesses in the supply chain from going under due to prolonged restrictions.

Government Response

Caroline Dinenage

It is a pleasure to serve under the Chair's stewardship and respond on behalf of the Government. The debate highlights the importance of live events, which contribute significantly to the UK economy (£116 billion from creative industries, £75 billion from tourism, etc., supporting around 6.9 million jobs). Indemnity cover is being carefully considered by the Treasury due to its financial implications and recent setbacks in other countries (German scheme stalled). The Government continues to engage with stakeholders weekly and works closely with other Departments on reopening plans, including the scientific events research programme which will test larger event capacities safely. Additional support includes extending self-employed income support, a £700 million arts fund, and recovery loan schemes. The culture recovery fund has received an additional £300 million extension. While acknowledging the challenges faced by freelancers and businesses, the minister emphasises ongoing government support and efforts to facilitate safe reopening.

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