PARLIAMENTARY DEBATE
Sport Sector: Financial Support - 19 November 2020 (Commons/Commons Chamber)
Debate Detail
Earlier this year, in May, we announced a £16 million emergency bail-out for rugby league to prevent the sport’s collapse, and the Treasury’s multi-billion-pound support packages, including the furlough and loan schemes, have been a lifeline for countless sports clubs and organisations across the country, helping them to stay afloat when their doors remained closed. Sport England has announced separate emergency funding of £220 million for grassroots clubs, and we recently announced a £100 million scheme for leisure centres. Together, that support has acted as a significant buffer to the pain.
However, we know that the decision taken in late September not to reopen the stadiums from 1 October has had major consequences for sports clubs large and small. It was the right decision, given the rate at which coronavirus was spreading across the country, but clearly, not being able to generate gate receipts deprives many organisations of a major source of income. The vast majority of those sports operate on tight financial margins and have been forced to make serious cost reductions such as locking down grounds, furloughing their staff, cutting wages, and halting excess payment. It was clear that if we did not act, a number of clubs would go to the wall, with real consequences for the grassroots game. That is why, over the past few weeks, we have been working tirelessly with the sports sector to understand the real pressures it is facing.
We promised to stand by the sports sector when we made the decision to postpone the return of fans, and today I am pleased to announce a £300 million sports winter survival package to see major spectator sports through this difficult period. The majority of that funding will be given through low-interest loans, with flexible repayment terms and grants when organisations are unable to repay loans. The package will focus on those sports that have been severely impacted by the restrictions announced in September, and it is the largest package announced by any Government for its domestic sport sector in the world.
I stress that these are provisional allocations of funding. They were made on a needs-based assessment process, and reflect the submissions made by the individual sports. Recipients will still need to apply, and the funding process will be overseen by an independent decision-making board, and supported by Sport England. That funding will include a top-up for rugby league of up to £12 million, as well as cash injections of up to £28 million for national league football and women’s football, up to £135 million for rugby union, and up to £40 million for horseracing. There is also up to £6 million for motorsport, up to £4 million each for netball, basketball, and ice hockey, up to £1 million for greyhound racing, up to £5 million for tennis, and up to £1.6 million for badminton.
Today’s provisional allocations are not the end of the story. The door is open for any sport to apply where there is a need. That includes cricket and other sports that are not on the initial list of allocations. Full details of the application process will shortly be announced by Sport England, with the first tranche of support expected to be distributed to clubs and bodies before the end of the year. In the meantime, if any individual club is facing imminent collapse, we will work with it through its national governing body. Based on the information that sports have given us, this package will help them to survive until the spring.
Of course, we would all prefer to see fans back in the stadiums. Spectator sports need spectators, and with the real progress that we are making on vaccines and testing, that goal is now firmly within our sights. Until then, we have stepped in to protect not just individual clubs and organisations, but entire sports and the communities they serve. I commend this statement to the House.
I know that, for the Treasury, sport in the context of the UK Government’s spending is almost a rounding error. It is a comparatively small commitment on the very, very big Treasury spreadsheet, but that fact is irrelevant to how important sport is to families in all our constituencies. It plays a huge role in the life of our country and, given its place in keeping us healthy, we needed a swifter response than this. That is particularly the case when we see how sport has been messed about. In August, with eat out to help out and the Prime Minister saying that he wanted to see “bustle”, sports were told that it was full speed ahead towards the reopening in October until No. 10 executed a sharp about-turn, and since then the pace has been slow to glacial. So in order to speed things up, I would like to help the Minister with some questions that will hopefully prompt action.
In two weeks’ time, the current lockdown arrangements will come to an end, and we hear rumours of a return to the tier system. Can the Minister please clearly explain what that means for grassroots sport? There are so many people who rely on swimming, their football team, their rugby game, their running club or their round of golf for their mental and physical health, and the lack of sport is doing our country damage. It cannot go on for much longer, and that is especially true when it comes to our nation’s children, so will the Minister please tell us when children can return to training? Robbie Savage speaks for the nation when he counts down the days in frustration to when we can play sport, and we need answers.
Next, we need to know that the money the Minister has just announced will reach sports quickly. The cultural recovery fund did not reach cultural organisations quickly enough, so can we ensure that we have no repeat of that experience? Will he commit to coming back to the House next month to explain the detail of the effect of this funding? Will it reach disability sport effectively, and will it support women’s and men’s sport absolutely equally, to a penny piece? What measures will he put in place to ensure that that happens?
We live in uncertain times, and the once predictable sporting calendar has been shifted all over the shop, so will the Minister commit to keeping the situation under review? I think I heard him say that he had an open door for anyone who needed help. That is a good thing, and I welcome it. In relation to that, he has explained that these funds are in response to the cancellation of the very slow piloted return of spectators that we were expecting from 1 October. We had an extensive debate on this only last week in Westminster Hall, so can the Minister bring us up to date on that? What is the truth of the rumours that spectators will return, but only in line with the as yet unannounced tier system? There are also rumours concerning the number of spectators. Is it true that the cap will be 1,000 people? While we are on the subject of Members’ concerns, we have another Westminster Hall debate coming up next week on the governance of football, and I expect to see many Members there. If the Minister cannot give us full details of the fan-led review of football at the Dispatch Box today, I suggest that he does so next Wednesday.
Finally, Madam Deputy Speaker, I know it will not have escaped your notice that the Government started this crisis accusing premier league footballers of not doing their share, and ended the summer U-turning on child poverty in response to the heroic campaigning of a premier league footballer. That should be a lesson to the Government. Sports people have been messed about month after month, and the British people want better. My final question to the Minister is this: in the face of a deadly virus, nothing matters more than public health, so where is the comprehensive plan for wellbeing right across the UK? This funding announcement today is a panicked response to a bad situation made worse by Government incompetence, and the country deserves better.
The hon. Lady is absolutely right to highlight the priority in terms of reopening. It is a shared goal across the Chamber to open as soon as it is safe to do so. That goes for grassroots and elite sport. As the Secretary of State has said, he wants to ensure that grassroots sport is at the front of the queue when it comes to reopening.
I can confirm, as I mentioned in my statement, that we hope for the money to be going out within weeks, and certainly for some of it to be disbursed before Christmas. There will be an appropriate proportion for women’s sport, and of course the total package will also support women’s sport. The hon. Lady has heard me say again and again—and I will repeat it today—that with anybody receiving Government money, I expect an appropriate level to go to women’s sport. There is specific money for netball, as well as women’s basketball and women’s football, in the package.
Governance is not necessarily the major topic of today, but we will come to it again and again, and it is a priority. I am very happy about the hon. Lady mentioning that she effectively supports the Conservative party manifesto, which of course had a commitment to a grassroots review of football. We will continue that, and I welcome her joining us in that effort.
I am disappointed that the Government have decided to go down the loans route, rather than having 100% grant funding. While I welcome his commitment to the national league and to women’s football, the continuing omission of support for the senior professional men’s game is disappointing. Scottish football does not have the megabucks TV deal that the English game enjoys and is almost three times more reliant than most European football on ticket sales as a share of revenue, with gate receipts making up nearly half of all revenue. Does the Minister recognise that even if a small number of fans can return to stadiums, financial support is still needed for these clubs?
If the Government pursue a reopening strategy at any future point allowing the return of fans in low infection areas, what provision will be made for devolved nations that have different lockdown rules and permissions for fan return? Will the other UK nations be forced to follow in England’s footsteps, or will support for the industry from the UK Government respect devolved decision making?
In September, I asked the Minister to commit to full engagement with the Scottish Minister for sport, Joe FitzPatrick. Will the Minister confirm that he has spoken to his counterpart in Edinburgh to explain the ramifications of this announcement for the Scottish Government’s finances? The Minister will be aware that the Scottish Government have still not received clarity on the Barnett consequentials from previous announcements. He should also be aware that the Scottish Government do not have the powers to borrow to finance a similar loan scheme in Scotland—an aberration that the Treasury could and should fix.
To conclude, will the Minister please provide clarity to this House and to Scottish Ministers about what Barnett consequentials will flow from today’s announcements, so that the Scottish Government can provide similar support in Scotland and Scottish sport is not disadvantaged?
I can confirm that there are Barnett consequentials to this, as there are for other support packages. I cannot provide the hon. Gentleman with the details at the moment. I actually talked to Minister FitzPatrick this week, and I am sure we will do so again. How the money is spent is a decision for the devolved Administrations; sport is a devolved matter.
I will focus specifically on rugby union. The Minister will be aware that, while the professional game has resumed, grassroots rugby has not, thus putting many clubs, which are small businesses themselves, in a challenging position. We have healthy, well-supported rugby club rivalries across Kent, but I fear that we are losing players and potential talent as a consequence of their not being able to play for most of this year, which threatens the viability of clubs due to the lack of supporters. Will he therefore tell the House what conversations he has had with the Rugby Football Union about the trickling down of that money to local rugby clubs and about the safe resumption of rugby at grassroots level, so that clubs can sustain themselves for the future?
My hon. Friend raises valid points about when we will get back, and what the criteria and process will be. All those are live issues and I would be happy to talk to him further about his proposals.
I am sure the Minister recognises that clubs are not like any other business; if one closes, fans cannot go down the road and simply buy their football from another club. Fans give a lifetime of support to their club and clubs are at the heart of their community. So will the Minister now respond to the letter that I sent him, along with the hon. Member for Folkestone and Hythe (Damian Collins), on behalf of the all-party group on football? Will he agree to meet us to discuss the problem of the EFL and meet Rick Parry, its chair, to have a look again at the financial assistance that is going to be needed to ensure that when spectators go back to football they will actually have a team to support?
In terms of EFL support, I refer my hon. Friend to the comments I made earlier about the Premier League and EFL needing to come to an arrangement. On the grassroots, we are very reliant on, and grateful for, the work that Sport England has done with its £220 million of support for the grassroots game.
My particular point is about the Landseer Park BMX track, which lies at the heart of the Gainsborough community. It is unique and has been there for a very long time. It is in a deprived area, and it gives young people there something positive to do. The track is deteriorating and there is a campaign to raise money to resurface it, but it is around £60,000 short at the moment. Will the Minister work with me, Tracey from the BMX track and British Cycling to, one way or another, make sure it gets that financial support, so that that unique BMX track can remain at the heart of the Gainsborough community?
Does the Minister also accept that we need help for the huge ecosystem of the sport and leisure industries, and their army of employees? They have spent considerable sums on making things safe, and they need the public back through their doors and gates. That includes sports clubs, racecourses and gyms, as well as pubs, clubs, betting shops and casinos. Can the Minister now persuade the Department of Health and Social Care and the Cabinet Office to abandon their risk avoidance and risk aversion strategy, and to adopt an evidence-based risk management approach?
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