Football Governance Act 2025 (Specified Competitions) Regulations 2025 Debate
Full Debate: Read Full DebateLord Parkinson of Whitley Bay
Main Page: Lord Parkinson of Whitley Bay (Conservative - Life peer)Department Debates - View all Lord Parkinson of Whitley Bay's debates with the Department for Digital, Culture, Media & Sport
(1 day, 7 hours ago)
Grand CommitteeMy Lords, I commend the regulations in front of us. I strongly support the points made by the noble Baroness, Lady Evans, on the question of the inclusion of the women’s game. It is an argument that I have heard on a number of occasions. The fact that there is willingness and a desire on the part of women’s football to come under the aegis of the regulator is, I hope, something of which the Minister will take account.
I want to mention briefly one aspect of this instrument: its scope. As the Minister correctly said, it covers the Premier League, the three divisions of the Football League and the top level of the National League, which used to be called the Football Conference. It is quite appropriate for the line to be drawn at that, as the clubs below that level are not in need of the regulatory burden that I suspect the introduction of a regulator and its activities would impose, but there is one aspect of the relationship between the National League and the Football League that I would like her to take on board and, perhaps, discuss with the regulator when she next sees him.
Between the Premier League and the Championship, there is a promotion and relegation arrangement: three clubs go up and three clubs go down. Between the Championship and what is now the first division of the Football League, again, it is three up and three down. When you go down from the first division of the Championship to the second division, it is four up and four down. However, when you get to the second division of the Football League and the top level of the National League, it is only two up and two down; indeed, the introduction of a second place was awarded only as recently as 2003.
A very powerful campaign is under way in the non-league game, if one can call it that, to introduce three up and three down. If any of your Lordships attended a match in the National League or its feeder leagues last Saturday, they will have discovered that the kick-off was put back by three minutes in order to draw attention to this campaign. It is strongly supported by the Football Supporters’ Association. If there is to be fairness, as well as an opportunity for clubs below the Football League to thrive, it is very important that “three up” comes into being. I hope that the regulator will take account of that and will be prepared to consider it when it looks at the structure of the game. I would like my noble friend to be prepared to raise this with the regulator at the first opportunity.
I am sorry; I should have declared my interest as the honorary vice-president of the National League.
My Lords, I first share in the felicitations that my noble friend Lady Evans of Bowes Park and the noble Lord, Lord Addington, sent to the Scottish team on their result last night. I send my best wishes to all the home nations for good results in the next World Cup.
The regulations before the Grand Committee define the statutory scope of the Independent Football Regulator created under the Football Governance Act 2025. The Government have chosen to include the top five professional leagues in English men’s football—116 clubs—on the basis that financial and governance risks are greatest at this level. As the noble Lord, Lord Addington, said, there is no surprise here; this was the policy direction that was set out in the Explanatory Notes that accompanied the Bill that became that Act.
However, he was not quite right when he said that this is more or less what the Act says because, as the Minister alluded to in her remarks, the reason we are here making this law in a rather sparsely attended Grand Committee, rather than through primary legislation on the Floor of the House, is that making that clear in the Bill would have made it a hybrid Bill. As she said, that was much discussed during our debates on the Bill, so here we are.
Nobody disputes the need for clearer oversight of the beautiful game, but the question before the Committee today is whether the Government have brought forward a regime that is proportionate, workable and credible. On each of these tests, some doubts remain, and those doubts were only heightened by the unanswered questions in the exchanges we had yesterday on the leadership of the new regulator.
The Government say that the clubs at the five levels set out in the instrument before us can absorb the new compliance obligations, but the reality, as we heard across your Lordships’ House in our debates on the Bill and from the sector itself, is rather different. Premier League clubs have the structures to cope; many League Two and National League clubs do not. Some operate with only one or two staff; many others rely on volunteers. For them, these regulations are not a technical adjustment but a material burden. In her introductory remarks, the Minister spoke of the regulatory burden that the Government have decided would be too great for clubs in lower leagues, but I hope she will acknowledge that there will be burdens on many of the 116 clubs that we are proposing to designate today.
The Government have produced no clear assessment of this disparity. We think that is an omission. If regulation becomes too onerous, investment will dry up and the base of the pyramid—the foundations of our national game—will be weakened. The very system that this Act is seeking to protect could be undermined by the way that the new law is implemented.
The timing compounds the problem. These regulations come into force in less than a month, half way through the season, giving clubs minimal time to adjust. That is not proportionate regulation; it is regulatory pressure imposed without due preparation.
These concerns become even sharper in light of yesterday’s unanswered questions on the credibility and independence of the regulator’s leadership. These matters are directly relevant to this statutory instrument because the effectiveness of the regulatory regime is inseparable from trust in those enforcing it. As I set out in the House yesterday, this matters not because of what it means for trust in the present Government but because UEFA and others have been very clear that English teams’ continued participation in international tournaments depends on the demonstrable independence of the new football regulator.
In our exchanges yesterday, the Minister said that I asked a number of questions. In fact, I asked just two and she gave full answers to neither. Before we decide whether to allow this statutory instrument to pass, I hope that she will give some clearer answers to them.
When the Urgent Question that we repeated yesterday was taken in another place last week, the Secretary of State said that the appointment of David Kogan as the chairman of the new regulator was
“not a prime ministerial appointment”.—[Official Report, Commons, 12/11/25; col. 170.]
If that is the case, why did the official read-out that the Secretary of State gave to the submission that she was sent by her department on 19 March, quoted at paragraph 27 of the report by the independent Commissioner for Public Appointments, say that her “preferred candidate” was Mr Kogan? I quote from the Secretary of State’s own words given in that report,
“subject to No. 10 giving the green light”.
Why did she send the Prime Minister a note asking for that green light? That is my first question.
Last week, the Prime Minister was forced to write to the Independent Adviser on Ministerial Standards, Sir Laurie Magnus, because of the partial information given in another place during the debate on the Urgent Question. That letter said that in the light of the hospitality that the Prime Minister had received from football clubs and the Football Association, he had agreed with Sir Laurie last autumn that:
“I would recuse myself from decisions relating to the Football Governance Bill”.
Despite that recusal, the Prime Minister was not only sent a note asking for the green light on Mr Kogan’s appointment but responded in writing to confirm that he was supportive of it. The Prime Minister now says:
“This was an unfortunate error for which I express my sincere regret”.
This note was sent in April before it became public knowledge that, like the Secretary of State, the Prime Minister had received political donations from Mr Kogan for his Labour leadership campaign.
In the light of that revelation, the Prime Minister and Sir Laurie Magnus had another meeting in June this year and, as his letter of last week puts it, agreed that he should stay out of the appointment process for the new football regulator. My second question is: given these recusals, originally made in autumn last year and strengthened and repeated in June this year, how can the Prime Minister play a part in exonerating the Secretary of State for her breaches of the appointments code? How can he determine whether she has breached the Ministerial Code in this matter?
These are not peripheral matters. They go to the heart of whether Parliament and international sporting bodies can have confidence in the regime and the regulator, whose scope we are asked to approve today. Independence, transparency and good governance are not optional extras in regulation; they are prerequisites. I hope that we will get clearer answers to those questions today. Until the Government provide full and credible answers to them, this Committee cannot be confident that the framework underpinning this instrument is as robust, independent or transparent as it must be.
I look forward to the Minister’s answers on that, as well as to the question asked by my noble friend Lady Evans about the possible future inclusion of the women’s game.
My Lords, this has been an important and useful debate; I am grateful to all noble Lords who contributed to it. In line with the noble Baroness, Lady Evans of Bowes Park, and other noble Lords, I congratulate Scotland on its impressive win last night. However, while we are congratulating home countries, I should like to note that Wales also won last night; I am sure that all noble Lords will join me in wishing that team well in its future efforts to qualify.
In relation to the SI before us, the implementation of this regime, which prioritises the protection of clubs from financial distress and protects the interests of fans nationally, remains a priority for the Government. That is why we are working at pace to deliver the next phase of the independent football regulator’s framework, for which the delineation of scope is a necessary step. Despite the concerns of the noble Lord, Lord Parkinson of Whitley Bay, we believe that the new regulator is proportionate and will not place unnecessary burdens on smaller, less affluent clubs. I am also clear that the scope of the regime has been appropriately defined.
A number of other points were made by the noble Baroness, Lady Evans of Bowes Park, the noble Lord, Lord Addington, and my noble friend Lord Faulkner of Worcester—and repeated by the noble Lord, Lord Parkinson—in relation to whether, when or how the women’s game or other leagues might be added to the scope. I want to make it clear that I would like nothing more than the women’s game being viewed as mature enough and financially independent enough to be considered to be included. I said several times during the debates on the independent football regulator in your Lordships’ House that I was not allowed to play football at school; it is of huge regret to me still, but I am delighted that my nieces have that opportunity.
The regulations that we are discussing can be updated to change the scope of the regulator’s remit. The Secretary of State must, in that instance, carry out an assessment of whether it would be appropriate to make changes, including consulting the regulator, the FA and any other stakeholders whom they consider relevant. On the process that the Secretary of State would need to go through, a report on her assessment would need to be laid before Parliament; the Secretary of State can then make regulations, if they so choose. We will continue to monitor the health of the game to ensure that the regime is regulating the right competitions. For this first use of the power, we have chosen, as was outlined during the course of the Bill, the top five leagues of men’s football. This is based on years of work, evidence and consultation, including the independent fan-led review.
My noble friend Lord Faulkner raised the issue currently being addressed by National League clubs in the 3UP campaign. The Independent Football Regulator will have a tightly defined scope, as set out in the Act, focused on ensuring the financial sustainability that will protect clubs for future generations of fans. The IFR will not legally be able to act outside of this tightly defined scope and so will not be able to intervene in matters such as the promotion and relegation model between leagues.
My Lords, I am grateful to the Minister for what she set out. We had 10 minutes yesterday for the Urgent Question; it was not quite the opportunity to set out things at length. I am grateful for the further information she has given. The Secretary of State said, when that Urgent Question was taken in another place, that this was not a prime ministerial appointment. Given that, was she wrong to have written, on the submission sent to her on 19 March, that her
“preferred candidate is Mr Kogan, subject to No. 10 giving the green light”?
I have not taken any part in the appointment process. This matter has been investigated by the Commissioner for Public Appointments. We should let this matter rest and let David Kogan get on with the job.
There has been an investigation by the Commissioner for Public Appointments. The Government announced Mr Kogan and confirmed him as their preferred candidate to be chairman before the commissioner had completed his inquiry or published his report. Does the Minister regret moving with that haste, given that the commissioner has now found that three material breaches of the Governance Code on Public Appointments were committed by her department? I am casting aspersions not on the character of Mr Kogan but on the conduct of DCMS in this appointment. The three material breaches imperil the impression of his independence, which is paramount for the future of the game.
On the question about the green light from No. 10, officials sent questions about the process to the No. 10 appointments teams, but that was not formally sent to the PM for his approval.
Would the Minister be willing to let the note that was sent to the Prime Minister be published in the Libraries of both Houses? It would be helpful to see the note that was sent and what the Prime Minister wrote. He has said publicly in his letter to Sir Laurie Magnus that he regrets that having been seen and written. Therefore, it would be helpful if we could see it and determine for ourselves whether that was an official submission to the Prime Minister.
I appreciate that the noble Lord wishes to prolong this debate and obstruct the progress of the IFR going forward but, no, I am not going to make the commitment that he has asked for today.