- Statement
- The following Statement was made in the House of Commons on 19 November.
- “For millions of people up and down the country, sport is so much more than a pastime. Sports clubs, large and small, enrich lives both on and off the pitches, the courts and the grounds, and they play a vital role in their communities. The value that sports clubs bring to their communities has been clearer than ever during this pandemic, and it is right that we support them.
- Earlier this year, in May, we announced a £16 million emergency bailout 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 grass-roots 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 re-open 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 grass-roots 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 where 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 sight. 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.”
- 7:45 pm
- My Lords, I am grateful to the Minister for repeating last week’s Statement. Normally, it is undesirable to have such a gap between the debates in both Houses, but, in this case, it allows us to consider recent developments.Labour welcomes the additional financial support for the sport sector, and I repeat the thanks expressed by my colleague, Alison McGovern, for the hard-working Treasury and DCMS, who have had to deal with complex financial returns at speed. It is regrettable, and I do not like to sound curmudgeonly here, that Ministers chose that process at such a late stage. However, these funds will nevertheless provide a lifeline for the range of sports that receive them, and for that reason they are very welcome.Last week, the Parliamentary Under-Secretary of State reiterated his desire for this money to be going out in weeks and certainly for some of it to be disbursed before Christmas. Is the noble Baroness able to provide any updates on the planned timescales, particularly in the light of today’s wider economic announcements? Can she express in percentage terms what amount she expects to arrive at with organisations before year end? I very much hope that the department has learned lessons from its experience with the Culture Recovery Fund, which, as we all know, took some time to start distributing moneys.In response to a question on equal access for funding by women’s sports, Mr Huddleston said that there would be an appropriate proportion for women’s sport. What, in the Minister’s view, is an appropriate amount? Again, I would appreciate a percentage. I know, from previous comments, that the Minister shares my view that we must not allow the pandemic to reverse the excellent progress and good work in women’s sports over recent years, but that will be possible only with appropriate financial help and support.The noble Baroness will not be surprised if I ask for an update on the Government’s planned fan-led review of football governance. We have been told that preparations are in progress without any dates being named. Ministers continue to point out that it was a manifesto commitment of theirs. Given this, we would expect there to be some more urgency.
- My Lords, it a good thing that we have this debate, even if it is nearly a week late. The old adage that a week is a long time in politics must be ringing very loudly in the Minister’s ears at the moment, because we have had many announcements that add to this Statement. The biggest, shall we say, elephant in the room—or dog that is not barking—is what is happening with arrangements for the upper tiers of professional football. If the Minister knows anything, now would be a good time to tell us. I would understand if no arrangement has been reached, but if anything can be told about that it would help us.To return to what is said in the Statement, we need a little more flesh on the bone. For instance, I live in the village of Lambourn in the “Valley of the Racehorse”. There, the National Trainers Federation has been asking how the money going to the racing establishment is going to trickle down to its members. Without people who look after the horses, you do not have any event. It is not that straightforward and there are details to go through.The noble Lord, Lord Bassam, has already had a good go on the fact that getting some fans into the grounds will help a few clubs. But one of my noble friends has pointed out to me that certain lower league clubs are getting gates of 18,000—I think Portsmouth does, if my noble friend the Chief Whip has told me right. He is nodding at me, so I am fairly safe there. If that is the case, how will this potential lifeline and way out compensate them? The reform of football has been made more pressing by Covid. We should be looking at the fact that the current model is virtually unsustainable. I do not think that we should forget that at any time.On rugby union, I heard a question today that I want to ask the Minister. What do you do about the money for the Olympic sport of sevens, which was cut due to this? I have heard that an arrangement is coming to help with that, which is good news, but rugby union may well be the last sport to play again. Let us face it, old prop forwards like me know that we form our own special non-socially distanced, germ-spreading little units around the place when we play the game. When do the Government expect there to be sufficient immunisation to allow us to come back? Intelligent things have been done about trying to get a different version of the game played. Rugby union may be the best example, but all sports have these questions. Will the Government have some form of timescale to allow the fans in and the playing of the game in all circumstances, especially at community level?
- I thank both noble Lords for their questions and their welcome to this funding. I echo the noble Lord, Lord Bassam, in thanking the civil servants in both DCMS and the Treasury for their incredible work on this package.The noble Lord, Lord Bassam, started by asking about timings for the disbursement of these funds. This package is aimed at those clubs really facing an existential threat, particularly as a result of the recent lockdown and the inability to allow fans back and the income that comes with that. We are keen on and committed to getting the first tranche of funding out by year end. More detail will be published about that shortly. There will also be an independent board overseeing the disbursement of the funds.The noble Lord also asked about funding for the women’s game. I must confess that I heard my honourable friend the Minister for Sport be slightly more vehement about the importance of those clubs receiving funding from the Government treating women and women’s sport exactly the same as men’s. The criteria for this fund are identical for women’s sport and men’s sport.I fear that I will disappoint the noble Lord regarding a further update on the fan-led review. As he noted, it is a manifesto commitment and we are committed to doing it. Progress is being made but no firm date has yet been settled on.Both noble Lords talked about the importance of returning fans to stadia. We are all enormously keen to get fans back and delighted by the recent decision that in tiers 1 and 2, in particular, there will be capacity for up to—in tier 1—4,000 fans in the open air. As the noble Lord, Lord Bassam, noted himself in a later comment, the decisions about the number of fans in a stadium are based not purely on the capacity of the stadium but also on the design, entrances, exits and travelling arrangements. We have done a number of pilots which have helped inform our thinking. We will watch and learn from the opening-up that is shortly to be with us, and then we will build on that. But we really do feel optimistic about the prospects for this as we go into the new year, and particularly beyond Easter.
- My Lords, we now come to the 30 minutes allocated for Back-Bench questions. I ask that questions and answers be brief so that I can call the maximum number of speakers.
- 8:01 pm
- My Lords, I very much welcome this Statement as an important rescue package, for that is exactly what it is. I note that £250 million of the £300 million is in the form of loans. When can we expect the terms of the loans and details of the repayment holidays to be finalised, rather than the final deals themselves? I hope that the Minister will commit to a comprehensive review of all Covid-related support for sport by the end of March, when this package ends, because long into 2021 the impact of Covid-19 will still be delivering a hammer-blow to the decimated income statements of both winter and summer sports across the United Kingdom.
- I thank my noble friend for his question. We will publish the application process and wider conditions for loans in the winter survival package in the next few weeks, but the principle behind the loans is that they should be affordable in terms of both the interest rate and the repayment period. In relation to a review of sport, I am not aware of a formal review of the sort that my noble friend suggests, but I stress that the team in DCMS is working extremely closely with all sports to get as thorough and comprehensive as possible an understanding of the situation and how we can relaunch stronger in the new year.
- My Lords, I draw the House’s attention to my entry in the register of interests. What work have Her Majesty’s Government undertaken to explore an equivalent of the hospitality sector’s Eat Out to Help Out scheme for the sport and fitness sector and connecting it to a scheme to drive activity levels that could support the Prime Minister’s obesity strategy?