(7 months, 4 weeks ago)
Commons ChamberThe Government are very conscious of the impact on clubs, which is why we are giving them time to prepare for the measures we are bringing into play.
On top of the new licensing system, the regulator will introduce a new strengthened owners and directors test to make sure that a club’s custodians are suitable, and to protect fans from irresponsible owners. This responds directly to growing concerns about financial mismanagement in football, particularly illicit finance, as well as to fans fighting back against owners at clubs like Blackpool and Charlton Athletic. The regulator will also bring in new, robust financial regulation to improve the financial resilience of clubs across the football pyramid.
As members of this House will be all too aware, a lack of financial resilience is one of the key risks to clubs’ futures. Giving the regulator powers to oversee financial plans and to step in to require clubs to beef up their financial resilience, where it has concerns, will prevent clubs from facing cliff-edge situations like we recently saw at Southend United. That will not mean that all clubs have to break even. We know that striving for success can come at a cost and that this ambition makes the game so exciting, so we welcome sustainable, sensible investment. What we cannot have is reckless overspending, irresponsible risk taking and inadequate funding. That is why the regulator will look at each club’s plans and how they are funded, and ensure that clubs have the resources to manage their risk taking. No longer can we have short-term actions jeopardising a club’s long-term sustainability.
The Secretary of State has mentioned fan engagement a couple of times. Fans increasingly feel as though they are not being listened to by their clubs. The fan-led review, which she has also referred to, made a series of recommendations in 2021 to give fans a real say in how their clubs are run. Will she be clear as to how the Bill will ensure that clubs are effectively and properly engaging with their fans and that fans’ voices are not being ignored?
The Bill identifies a number of things that we know are important to fans, including heritage assets such as the colour of shirts, badges and the location of a club’s stadium. We know that those are the things fans care about. The Bill ensures a proportionate approach, because we know that engagement with different fans at different clubs, which have very different measures in place, will require us to take a proportionate, case-by-case approach. The regulator must ensure a level of engagement with fans, particularly on the issues that I am identifying, but we also want to ensure that it works for the clubs. Therefore, it will be for the regulator to ensure that a proportionate approach is taken.
I was about to go on to discuss that aspect, because we will be setting a minimum standard of fan engagement, and requiring clubs to seek the approval of their fans for changes to those things I mentioned in order to comply with the strong existing protection for club names. We know that most clubs have a strong relationship with their fans, consciously engaging them in decisions about the club’s heritage. However, there have been some notable exceptions, as we have seen at Cardiff City and Hull City, whose fans have had to battle to bring back or keep their club’s colours, badge and name.
As I said, the regulator will also protect fan interests with the requirement for clubs to seek its approval for any sale or relocation of their home ground. The stadium a club plays in is not only of significant value to fans; it can be the club’s most valuable asset, and it is only right that a club seeking to relocate has to demonstrate that such a move would not significantly harm the heritage of the club.
(9 months, 1 week ago)
Commons ChamberIt is a pleasure to follow my hon. Friend the Member for Leeds North West (Alex Sobel). I gave my maiden speech in the Budget debate this time last year, so I am feeling a little reflective and reminiscent, and I have found myself reflecting on the past year and on what has changed. In what state do we find the economy, a year on? Supermarket prices are still rising, living standards are falling, the tax burden is at record high, and there is still no real sign of interest rates coming down to where they were before the Tory mini-Budget tanked the economy. But one thing has changed: the Chancellor and the Prime Minister have managed to put the country into recession. At a time when every other economy in the G7 except one is growing, the Conservative party has fallen asleep at the wheel, and the UK economy is getting smaller as a result. Had the UK economy grown at the average rate of OECD nations over the past decade, it would be £140 billion larger today. That would have contributed an additional £50 billion in tax revenues to invest in our public services.
Let us be clear: the economic issues we face today are the result of 14 years of mismanagement of the country’s finances. The Government are out of ideas, and fast running out of time. The economic reality that we face in Britain today is a pale and weak imitation of the sunny uplands promised by the Conservative party at every election since 2010. Britain has always been a country where we are proud to pay our taxes. We understand that by contributing from what we earn, we fund the public services that we all rely on—roads, schools, the NHS. So with taxes at their highest since the war, Britain’s public services must be the envy of the world, right? Sadly not. They are creaking at the seams. Time and again, I hear from constituents how hard it is to get an appointment with a doctor or register with a dentist. School budgets have been stripped to the bone, and teachers are having to fund pens and pencils from their own pockets. Our roads are littered with potholes. Many routes in West Lancashire are bordering on dangerous, given the state they have been left in. Taxes are at record highs and public services are on their knees. The national debt has trebled since 2010.
The Government are giving working people a raw deal. The state of our economy is not an accident, but a choice. Conservative Chancellors chose to impose austerity on public services and to let the covid fraudsters get away with billions of taxpayers’ money. It was a Conservative Chancellor who rushed through the “kamikwasi” Budget, crashing the economy. Those were choices that the Conservative party made knowing that working people would foot the bill.
I am glad that the Chancellor decided to draw inspiration from the Labour Benches. Scrapping the non-dom status is a choice that we on this side can get behind, but why has it taken so long? The shadow Chancellor has been calling for non-doms to pay their fair share for two years. That is £6 billion that the Chancellor has left on the table—£6 billion that could have been funding our schools, hospitals and roads, and used to relieve the pressure on household bills. Faced with the worst poll ratings on record, the Chancellor is so desperate to cut national insurance that he has introduced a policy on non-doms that he has consistently argued against since getting his job. He has even promised to abolish national insurance altogether, but that leaves a £46 billion unfunded hole in the economy.
Working people are still worse off. For every £5 the Chancellor gives with one hand, he takes £10 with the other. The average family will be £870 worse off under his plans. It gets worse: someone with a mortgage in Tory Britain in 2024 will have hundreds of pounds added to their bill. This summer, we are set to see even more mortgages get even higher at the end of their terms. There is nothing in the Budget for parents, the elderly or first-time buyers; in fact, I am not sure what the Budget has for anyone. There is certainly nothing for the loan charge or infected blood scandals—not much at all, other than gimmicks and unfunded promises. Whether at by-elections or in the polling, it is the Labour party that voters are choosing to trust with the economy. It is about time the Government gave them a chance to decide. It is time for a general election.