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Live Events: Government-backed Insurance
23 March 2021
Lead MP
Jamie Stone
Caithness, Sutherland and Easter Ross
Lib Dem
Responding Minister
Caroline Dinenage
Tags
EconomyEmploymentCulture, Media & Sport
Word Count: 11329
Other Contributors: 6
At a Glance
Jamie Stone raised concerns about live events: government-backed insurance in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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 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
Government Response
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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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.