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Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Thursday 27th March 2025 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I sympathise with the position that the Minister is in, but it is more than a year since the House passed what is now the Media Act 2024, and, even accounting for the general election, it is eight months since the consultation on this matter closed. As she will have heard from the questions across the House, this is causing concern for the staff and readers of the Telegraph. It is giving rise to questions about what representations the Government are receiving from other governments. It is also adding to confusion about the policy intent. Our understanding was always that foreign powers, as defined under the 2024 Act, will not qualify for an exemption. Is that still the case? Is she able to shed any light on that matter between now and the measure that she will bring forward?

[Baroness Twycross (Lab)]

I genuinely do not underestimate the frustration that noble Lords feel on this point. In relation to the future of the Telegraph, there is a pre-emptive action order in place which prevents parties taking action to transfer ownership or control of the Telegraph, integrate the Telegraph business into other enterprise, or make any significant changes to the structural management of the Telegraph without the Secretary of State’s consent. This is to safeguard the business and its employees during the sale process. I can only restate the Government’s position, which is that I will be able to report back to your Lordships’ House very soon. I have highlighted to the department that there will be a debate shortly after Easter in which this issue is likely to come up again.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Report stage
Monday 17th March 2025 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, although I am mindful of the rules of debate on Report, I am sure that noble Lords will understand if I preface my remarks with a short, two-hour encomium to Newcastle United, congratulating them on their victory in the Carabao Cup, their first domestic trophy in 70 years—that is longer than the living memory of any of my relatives. That is an area on which I know the Minister and I are in full agreement. I am mindful that other noble Lords were present at Wembley yesterday and hoping for a different result, so I shall not go on about it, other than to say that I hope that anyone who had the pleasure of being on the London Underground yesterday was as delighted as I was to see all the lads and lasses there with smiling faces and will join me in sending hearty congratulations to the Newcastle fans, who have waited so very long for this moment.

The Government’s new corporate governance provisions have, I think it is safe to say, received considerable attention during our debates on this Bill. My noble friend Lord Jackson of Peterborough has just set out the concerns of many on these Benches very powerfully, and the noble Baroness, Lady Fox of Buckley, has echoed them and added her own concerns.

I have been very clear throughout the passage of the Bill that we on the Opposition Benches are not persuaded by the changes the Government have made to the Bill, compared to the version we put forward in the last Parliament. As I said in Committee, we do not believe that the additions the Government have made in this area are necessary either. The Bill already has strong corporate governance requirements, mandating a corporate governance statement as part of the licensing process, and that is in addition to the rules already enforced by the Football Association and competition organisers.

Regardless of whether one believes that prescribed EDI policies would improve the operation of clubs and football in this country—and as we can see from the short debate we have had again today, that is by no means a settled view—clubs already have to comply with similar rules and, in many cases, voluntarily go further. The noble Lord, Lord Bassam, alluded to some of the work they do, and my noble friend Lady Brady mentioned it in more detail in our debate in Committee. Mandating further policies and action to promote equality, diversity and inclusion is, therefore, a clear example—we think—of unduly onerous regulation which has little to do with financial stability. The Minister has been clear throughout our scrutiny that this is intended to be a sustainability regulator.

Our concern is that placing new EDI duties in the Bill and, therefore, tasking the regulator with concocting rules to that end would increase the risk of mission creep, which we have all been very concerned about. We are clear that this will end up meaning more, not less, regulation. At a time when the Prime Minister is promising to clear out the regulatory weeds, and the Chancellor is writing letters to regulators asking them to promote economic growth, we should be aiming for fewer regulatory burdens, not more.

I shall say a few words about Amendment 34, which my noble friend Lord Markham outlined the case for, which relates to independent non-executive directors. We had a strong cross-party exchange on this topic in Committee, when amendments to the same effect were tabled by the noble Lords, Lord Knight of Weymouth and Lord Blunkett. They were evidently satisfied with the Minister’s response, so they have not brought them back, but I am glad that my noble friend Lord Markham has tabled his. I am very grateful to the Minister for taking the time to discuss this issue with both of us, as I believe she also did with a number of other noble Lords who raised it in Committee. She kindly copied us in to the letter she sent to the noble Lord, Lord Knight of Weymouth, about it, but I look forward to any further reassurances she is able to give on Amendment 34.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

I join the noble Lord, Lord Parkinson of Whitley Bay, in his congratulations to Newcastle United, and I offer commiserations to Liverpool and its supporters. Good football is always a joy to watch, but only one side can win; I feel for those who put in all their effort and did not go away smiley-faced.

I want to address one of the points raised by the noble Lord, Lord Jackson of Peterborough, in relation to reports in the media this morning. The noble Lord should be mindful of the old adage that you should not believe everything you read in the newspapers. Your Lordships’ House has heard at length during the Bill’s passage that too many football fans have been left with nowhere to turn when faced with reckless owners, financial mismanagement and threats to their club’s very existence. That is why the Government remain absolutely committed to introducing an independent football regulator to put fans back at the heart of the game.

We had extensive discussion on the topic of equality, diversity and inclusion in Committee, when a number of noble Lords opposite aired their considerable concern over what is a very standard addition to almost all corporate governance codes. I am sure that the noble Lord, Lord Jackson of Peterborough, and the noble Baroness, Lady Fox of Buckley, will not be surprised to know that I do not agree with them. The Government have not changed our view that equality, diversity and inclusion is a key part of good corporate governance. Research has shown that diversity on boards and in organisations promotes better governance, decision-making and transparency, all of which in turn contribute to improved financial sustainability.

We heard in Committee about the vital work that the industry is already undertaking in this area. The regulator will look to work co-operatively with other stakeholders, to draw on the expertise of the sector and to add to industry initiatives through the code. As with fan engagement, this will be a statutory baseline.

The noble Lord, Lord Jackson, referred to the Green and Hand report, which was forwarded to me —I am very grateful to the noble Lord, Lord Moynihan of Chelsea, for that. I appreciate that the noble Lord, Lord Jackson of Peterborough, noted the findings of Green and Hand regarding McKinsey studies into the relationship between EDI and corporate performance. I recognise that the assessment refutes the link between ethnic diversity and financial performance. However, it remains my view that the relationship between diversity and improved corporate performance is well established and accepted beyond the studies of McKinsey alone. For example, both the Financial Reporting Council and the Association of Chartered Certified Accountants acknowledge this relationship. Clubs that already champion equality, diversity and inclusion will not have an additional burden placed on them, other than having to periodically report on these things.

My noble friend Lord Bassam of Brighton outlined a number of issues that remain within the game. Under the corporate governance code, clubs will simply be required to explain how they are applying the code and what action they are taking on equality, diversity and inclusion—nothing more. As suggested by the noble Lord, Lord Addington, that does not feel onerous, but it is a helpful and transparent measure, in the Government’s view, and I refer noble Lords to the points made by the noble Lord, Lord Pannick. As I have said previously, the regulator is not going to prescriptively micromanage each club’s board, or set targets and quotas on EDI. That is not the role of the regulator, and would be a significant burden on both the regulator and clubs.

Turning to Amendment 34, in the name of the noble Lord, Lord Markham, I thank the noble Lord for this amendment and for his engagement on this, along with a number of other noble Lords. I particularly thank my noble friend Lord Knight, who has been a strong advocate on this issue and has met me to discuss it. I wrote to him about it, as the noble Lord, Lord Parkinson of Whitley Bay, mentioned, and I would be happy to lay a copy of this letter in the Library of the House.

As I outlined in the letter, we are fully in agreement with the principle of independent non-exec directors. We recognise that they can greatly improve decision-making, provide independent scrutiny and drive up corporate governance standards. This supports the regulator’s objective of better financial soundness, stability and decision-making for football clubs. However, while we agree with the principle, we do not feel it is right to include this detail in the Bill. We do not believe that the Government should be writing the corporate governance code, or making detailed recommendations on how a club’s board should operate. Indeed, no corporate governance code is written in primary legislation; this helps ensure flexibility and future-proofing.

We are setting up an independent, specialist football regulator, which will have in-depth knowledge of the unique challenges of football club governance. It will be for the regulator to then develop, consult on and ultimately publish this code. This approach enables consultation with industry, including clubs, which is essential to ensure that it is appropriate for the football industry and that it can be adapted in the future to reflect best practice. However, I again assure noble Lords that we fully expect the regulator’s code to include detail and guidance on independent directors. This is the norm for all corporate governance codes, and we do not expect the regulator’s code to be any different.

I think there is broad agreement on the importance of independent non-exec directors, and I thank noble Lords across the House for the interest shown in this issue. I hope that the reassurance I have provided will satisfy any concerns that INEDs will not be included in the corporate governance code. I therefore hope that noble Lords will not press their amendments for the reasons I have given.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, Amendment 80, which relates to my favourite topic of heraldry, has already been debated. At the end of that debate on the first day on Report, the Minister very kindly agreed to a further meeting with me and with the College of Arms, which took place this morning. I am going to move my amendment in order to allow the Minister to say what she took from that meeting. On the basis of what I expect her to say, I will not be pressing this to a Division, but I look forward to hearing her.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson of Whitley Bay, for sharing his expertise and enthusiasm on this topic in your Lordships’ House, and for the opportunity to respond on this point. I thank him and the College of Arms for their time earlier today. Before he confirms whether he is going to divide the House, I reiterate that it is the Government’s intention that nothing in the Bill is to be read as superseding or impairing any prerogative powers of the Crown in relation to coats of arms, whether exercised directly by the King or on his behalf by the Kings of Arms. I guarantee that something to this effect will be added to the Explanatory Notes to this clause.

[Lord Parkinson of Whitley Bay]

My Lords, I am very grateful to the noble Baroness, particularly for all the time that she has spent on this niche but important issue. I am also grateful to the Bill team for their meetings, including the one we had today with Norroy and Ulster King of Arms. With gratitude, I beg leave to withdraw my amendment.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, the noble Baroness, Lady Fox, is right that the congratulations that have been coming my way for Newcastle are entirely misplaced. However, I am sure that the cross-party support the noble Baroness and I gave them on the first day of Report buoyed the team and their success, but it had nothing to do with me. But I can reassure noble Lords that my uncle Barry was probably the person cheering the most loudly at Wembley last night.

I also agree with all those who have welcomed the Government tabling Amendment 90. In Committee, there was cross-party support for looking at how this will all work in practice, from those who are keen to see the regulator up and running swiftly to those who are more sceptical. We had support from the chairman of the Hansard Society and my noble friend Lord Norton of Louth, who watches legislation very carefully. I join the welcome expressed to the Government for bringing forward Amendment 90.

My noble friend Lord Goodman of Wycombe has argued throughout the passage of the Bill, from Second Reading onwards, that greater oversight and post-legislative scrutiny would be needed. I therefore hope that the Minister will look at the further helpful amendments that the noble Lord has tabled today, arguing that it would be better for an independent body to conduct the review of this independent regulator. Again, my noble friend has been very constructive in the points that he has raised.

Amendment 81, tabled by my noble friend Lord Maude of Horsham, which leads this group, covers the same area that my noble friend Lord Hayward has just touched on in his contribution: the cost of compliance with the new regulatory regime. Clearly, since the Bill that was brought forward in the last Parliament, we have seen new things such as increased employer national insurance contributions, the increase in the minimum wage and the further costs to business that will be coming through the Employment Rights Bill. The financial position of smaller clubs takes place in an even more difficult economic environment. We on this side of the House remain concerned that imposing a levy and further regulatory costs on top of these will likely make clubs less financially sustainable, not more.

My noble friend Lord Hayward points once again to the impact assessment, which does not account for the increased costs of hiring. It says that clubs will have to hire more staff to comply with the extra regulation but does not consider that those extra employees will cost more now than they would have done even when we first looked at the Bill. This is particularly severe when it comes to the smallest clubs in the National League. The general manager of the National League, Mark Ives, and the chief executive of Dagenham and Redbridge, Stephen Thompson, have both warned of the potential for the Bill to create onerous consequences for National League clubs which are not only financial but bureaucratic. Mr Ives said:

“We are concerned about the costs … The expectation of how much it is going to cost clubs at a National League level is a huge concern—it may be a small amount of money, but it is a lot to the clubs”.


National League clubs operate with a very small number of staff, with many in Mr Thompson’s words working on only

“two or three people and some volunteers”.

There is a real risk that some of these smallest clubs will struggle with the further burdens that are placed upon them, so I hope the Minister will look at these amendments.

My Amendment 94, which is in this final group, seeks to ensure that the review takes into account the effect of the regulator’s activity on ticket prices. We had a good debate on this during our first day on Report and indeed a Division which was very conclusive, so I will not say anything further about that issue other than to thank the Minister for all the engagement that she has given during and since Committee, ahead of Report and during our two days on Report. We are all very grateful.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Goodman, for his amendments and for speaking to the amendment in the name of the noble Lord, Lord Maude of Horsham, and other noble Lords who have spoken during this short debate.

In Committee, Peers across the House raised the topic of evaluating the impacts, efficacy and success of the regulator. I thank the noble Lord, Lord Norton, in particular, for his expertise and time in discussing the topic despite his complete lack of interest in football. I have sometimes found that those noble Lords who have an interest in the details relating to legislation or a regulator come at this topic with a slightly different perspective, which is really helpful, and I welcome his contribution tonight. I am keen to continue discussions on this and other topics with noble Lords across your Lordships’ House—although I must admit that I am quite pleased to be reaching the end of Report.

We agree that it is good practice for the impact of regulation to be monitored and evaluated post-implementation. I am grateful to noble Lords across the House for welcoming government Amendment 90, which will require the Secretary of State to carry out a review of the operation of the Act and its impact on the industry. This must be completed no later than five years after the full commencement of the licensing regime. Among other things, the review will look into whether the regulator has been effectively achieving its objectives or whether they might be better achieved in a different way. This includes explicitly considering whether delegation might be appropriate, for example, to an independent industry body.

As part of looking into the impacts of the regulator on the market, the review will also consider interactions with industry rules and any resulting burdens. It will also be a set opportunity for the Secretary of State to formally consider and set out whether the competitions in scope of the regulation remain appropriate. The report will be laid before Parliament and will lay long-term scrutiny of this regime by this House and the other place.

The noble Lord, Lord Hayward, has been a champion of clubs in relation to costs throughout. In relation to compliance costs and the statutory review proposed, a separate review of compliance costs alone might be unnecessary, duplicating the work of the post-implementation review and creating additional costs. The statutory review will offer an opportunity for a more complete and detailed view of the regulator’s performance, per se, and will therefore be more useful in understanding the costs and benefits of regulation to clubs. It will also capture compliance costs that are more reflective of ongoing costs instead of the initial costs of the first year of familiarisation, although we expect that, in its annual report, the independent football regulator will have due regard to these issues.

I thank the noble Lord, Lord Goodman of Wycombe, for tabling his amendments. I completely understand their intent—namely to introduce more independent scrutiny of the legislation and its effects—but, unfortunately, we do not think it is appropriate for an external third party to carry out this review of the Act. As is common practice, it should be carried out by the Government, particularly because the review may inform future government policy and because its conclusions may include recommendations to add, amend or repeal primary legislation. The Government introduced this legislation, and, in our view, it should be the Government which review whether it has achieved what it intended. However, we completely agree that there should be additional scrutiny, and the intention is that this review will facilitate that scrutiny, for example, by a relevant committee of Parliament. However, it is not for this Act or the Government to direct Parliament to undertake that scrutiny.

On Amendment 92, we have not taken the approach anywhere in the Bill of prescribing specifically where publication must be done. Clearly, the norm these days is for publication online. However, there is no need to mandate where online, as to do so would risk the legislation becoming outdated.

I appreciate the intention of Amendment 81, tabled by the noble Lord, Lord Maude of Horsham: to ensure the regulator is offering value for money and not unduly burdening clubs financially. Ensuring efficiency and avoiding unnecessary costs have been at the heart of the Bill’s development, but the proposed amendment would duplicate the Government’s statutory review amendment and would therefore impose unnecessary additional costs and burdens on the regulator.

On Amendment 94, in the name of the noble Lord, Lord Parkinson, we are acutely aware that ticket prices are a key issue for fans. That is why the Bill explicitly requires clubs to consult their fans on this point. It may well be that the regulator also chooses to look at ticket pricing as part of the “state of the game” report. However, as it is a commercial decision, the regulator will not intervene beyond this. I again reassure the House: we do not believe that an increase in ticket prices would be a proportionate reaction to the cost of the regulator. The levy will be distributed proportionately, and no club will be asked to pay more than is fair and affordable.

An industry that earns over £6 billion a year in revenue and spends hundreds of millions of pounds on player transfers every year cannot legitimately say that it has no choice but to pass the cost of regulation on to fans, particularly since the cost faced by any one club will be relatively low and proportionate to their financial resources. However, if the regulator were to lead to higher ticket prices, this in our view would be captured within the review, which must look at the impacts of the regulator on football in England and Wales.

I turn finally to Amendment 94D in the name of the noble Lord, Lord Moynihan. As I have set out, one aspect of the statutory review will be to consider whether delegation might be beneficial. However, we do not believe that the power to delegate should be provided for in the legislation at this stage. We should not pre-empt the findings of the review, particularly as there is no way of predicting what delegation might need to look like or to whom that delegation might be. We have been clear, as the previous Government were clear, that independent regulation is needed in English football because the industry has shown itself to be incapable. Any decision to delegate back to the industry is not a decision that should be taken lightly, nor should powers established by an Act of Parliament be transferred to private third parties without proper parliamentary process. I am surprised that the noble Lord has tabled this amendment, given the concerns that he has raised repeatedly on delegated powers.

For these reasons, I hope that noble Lords will not press their amendments, and will accept government Amendment 90 when we come to it.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Report stage
Tuesday 11th March 2025 Lords Chamber

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson, for his passion for heraldry and the interesting discussions we have had on this topic in Committee and afterwards. The Government absolutely agree on the importance of this legislation being able accurately to protect club heritage. That is why officials have worked closely with the College of Arms, and I thank it for its engagement. In doing so, we have ensured that the legislation remains in step with both the FA’s heritage guidelines and heraldic terminology. The Government have tabled Amendments 30 and 49 to expand the references from “crest” to “crest or emblem”, and the noble Lord has my commitment that we will add additional clarity in the Explanatory Notes which accompany the Bill. We will include language to the effect of the noble Lord’s Amendment 80 in the Explanatory Notes.

Turning to government Amendments 48 and 79, I would like to thank my eagle-eyed noble friend Lord Bassam again for raising awareness of the consistency of drafting in Clause 46. We absolutely agree that it is best for language to be consistent where possible. That is why we are bringing forward this amendment to align drafting. I would like to reassure noble Lords that this change has no impact on the policy; none the less, it is a change we are welcoming. I beg to move.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, for reasons I cannot fathom, our debates on heraldry always seem to come late in the evening. But I am delighted to see that it is commanding such interest from the Government Benches this evening. I take that as great encouragement.

I thank the Minister and her officials, who have taken a number of meetings and had a number of conversations on a subject that might seem recherché but is important not just to me but to the College of Arms and, indeed, to many who have been following the Bill. As I set out in Committee, this point was raised on social media; in a very new medium, an ancient problem was highlighted.

Some might think that the use of correct heraldic terminology is trivial, but it is my firm view that it is not. Not only should we generally aim for precision in the language we use in legislation but where the provisions of the Bill, and indeed the actions of the regulator, may intervene in the activities of a body as venerable as the College of Arms, we need to ensure that we get it right.

I welcome the good will that is reflected in the fact that the Government have brought forward some amendments, but I am afraid we have not quite got there yet, which is why I have risen to speak to my Amendment 80. To briefly summarise what I set out in Committee, the problem in government Amendment 30, which the Minister has just moved, is the term “crest”—which some will take to be the badge part of a coat of arms but is in fact what appears above it. The word “crest” is repeated in the explanatory statement to Amendment 30, where the Minister has said:

“This amendment adds a reference to a team’s ‘emblem’ alongside ‘crest’, to avoid confusion with the … use of the term ‘crest’”.


It is better to avoid that confusion by not using it, hence the amendment I brought in Committee suggesting that we should properly call it a “badge”. We are repeating the incorrect term, which is the problem that I and the College of Arms have been raising with the Government.

During the meetings we have had, we have been trying to land this point with the Government but have not quite been able to get there. I am aware that correspondence was had with the Minister’s department only today, following up the points. I know the college welcomes what she is going to put in the Explanatory Notes, as do I—that is very helpful—but it is looking for a saving clause that simply asserts, or reasserts, the authority of the Kings of Arms over armorial bearings. That is the sticking point that I hope we might yet be able to resolve on this matter.

As I understand from the College of Arms, the department’s argument is that the regulator does not approve the content or substance of a proposed club badge but merely decides whether it went through the required process of consultation under the Bill. The department argues, therefore, that there is never any risk of the regulator straying on to the college’s turf since the regulator is not involved in the question of what a badge consists of or looks like. The Government argue that that is why nothing is needed. Rather perversely, they argue that a saving clause would create the impression that there is a conflict here, but that misses the point. When taken as a whole, the Bill does create approval for a badge, which it incorrectly calls a crest, albeit via consultation with fans and others. The Bill creates a mechanism for the approval, and indeed disapproval, of a badge—mistakenly called a crest—in statute. That cannot fail to create a sense that, at some level, the badge that has gone through the process has achieved some kind of authorised status.

In Committee we discussed the examples of problems that may occur. In lots of local authorities, a football club uses the same or a similar coat of arms as the local authority. If there were to be a conflict between that local authority and that club about the proper use of it, the College of Arms would be asked to step in and adjudicate. So there is a risk that the Bill unwittingly encroaches on the Crown’s prerogative in regard to heraldry. This is not the same as trademarks, but in the case of coats of arms we are talking about the Crown prerogative, which surely limits the extent to which parallel clauses for other parties are required.

What the College of Arms is asking for, and what I am suggesting in my Amendment 80, is not unusual. There are plenty of examples of saving clauses in other legislation; for instance, Section 33 of the Immigration Act 1971. My Amendment 80, which the college hopes to see put on the face of the Bill, not just in the Explanatory Notes, would follow the well-established precedent of protecting with absolute certainty the rights of the Kings of Arms.

All of us who have come into your Lordships’ House have taken our first steps in this Chamber following, slowly and reverently, the footsteps of the Garter Principal King of Arms, an office that has existed since 1415. We went to see him at the College of Arms, to seek agreement for our very names and titles. We have sworn an oath of allegiance to the sovereign that it is his solemn duty to proclaim at the moment of accession. So I hope that we can give him a few moments of our attention, even at this late hour and at this late stage of the Bill.

The saving clause that I have proposed, drafted in general terms, will not create the impression that the regulator will be involved in considering the substance of designs—or anything else, for that matter. I believe it is a simple but important amendment, which I very much hope the Minister will be able to accept. Happily, if there should need to be a Division on my Amendment 80, it would not come tonight but on day 2. I hope that, if she is not able to give that reassurance now, she will be able to take it away, reflect on it further—particularly in the light of the correspondence that I know she and her department have had today—and avoid the need to divide on this.

I am very grateful for the time and attention that the Minister has given, and for the improvements that we have had already. This final insertion really is the matter that would allay the concerns of the College of Arms and, therefore, my concerns as well. I beg to move.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson, again for his engagement on this matter and for his amendment.

We genuinely do not think that this matter is trivial but we do believe that the language in the noble Lord’s amendment would be a redundant addition to the legislation; we do not think that it is required. This is because, aside from the terminology used regarding the club emblems, the regulator’s powers are not expected to interact with the College of Arms and, therefore, the powers of the Kings of Arms.

Indeed, the regulator will ensure that fans have been properly consulted on proposed changes, but it will not be for the regulator to approve designs, only the process of clubs working with fans. This is rightly for other organisations, including the College of Arms, but also the Intellectual Property Office and other bodies.

As the regulator has no role in what the crest or emblem looks like, nor whether it infringes on any trademarks or copyright, it is implicit that the relevant body’s decision will supersede any related action by the regulator. There are many instances where the regime has been designed specifically not to conflict with existing powers and processes, such as law enforcement investigations or HMRC business requirements. However, it is unnecessary and unconventional practice for all parties that may work on parallel issues to the statutory body to be listed.

I hope that, through the changes we have made, and through further explanations in the Explanatory Notes, the noble Lord will be reassured that the sanctity of the College of Arms will be preserved. I am happy to meet him to discuss this further but, for the reasons that I have set out, I hope that he will withdraw his amendment. I hope that noble Lords will support these government amendments. I beg to move Amendment 30.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Report stage
Tuesday 11th March 2025 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I was always in the habit of complying with the Freedom of Information Act and, in this instance, my advice to the noble Baroness would be to give us as much as she can about UEFA’s concerns. It is very clearly a matter of concern here in your Lordships’ House. I hope the matter can be settled. Maybe the noble Baroness can say a bit more about the correspondence that she has had with UEFA but, if not, I hope that my noble friend Lord Moynihan will continue to pursue this important issue.

[Baroness Twycross (Lab)]

My Lords, I had been slightly unnerved by the tone of the debate up to this group. I now feel myself in much more comfortable territory—under attack and revisiting the issue of international competitions.

I understand the intent of the amendments from the noble Lord, Lord Moynihan, to put beyond any doubt that the Bill and the regulator will not breach UEFA or FIFA statutes. I would like to thank him for his time, both in writing and in meeting myself and officials. However, I would like once again to reassure your Lordships’ House that these amendments are not necessary. At the very least, they are trying to solve a problem that does not exist; at worst, they attempt to create an issue that does not exist.

I would be a brave and foolish Minister if I proposed legislation that risked us being banned from international competitions. UEFA has again confirmed in writing with the Secretary of State, just last month—and, as the noble Lord, Lord Goddard of Stockport, and other noble Lords, including my noble friends Lady Taylor and Lord Bassam highlighted, the FA confirmed directly to noble Lords, including the noble Lord, Lord Moynihan, just yesterday—that the Bill, as drafted, does not breach UEFA statutes.

The regulator will be operationally independent of the Government and will not exert an undue influence on the FA’s ability to govern the game. The extent of its statutory powers and duties will simply not allow it to do so. I know that there have been requests to see the letter that UEFA has sent to the Government that was leaked to the media last year. I wrote to UEFA, following the conclusion of Committee, asking whether they would be content for me to release the letter, but they replied that they would rather that communications be kept private. It is important that I respect this request to ensure that the Government can continue to have honest and constructive conversations with our stakeholders.

I turn to the issue of the FOI. This is—

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, I thank my noble friend Lord Moynihan for the forensic way he set out the case for his Amendment 7. The example with which he illustrated it—one he has used throughout the passage of this Bill—is certainly one that captured my attention, coming from Whitley Bay. It is causing some concern across Tyneside and among Newcastle United’s many fans across the world. I would be failing in my Geordie duty if I did not take this opportunity to wish the team the best of luck for the Carabao Cup this weekend.

I understand that the Minister cannot speak for a regulator that is to be independent and that does not yet exist, but I hope she will be able to say a bit about the implications of the Bill, such as the one that my noble friend Lord Moynihan set out. It clearly has some very serious consequences, not just for Newcastle in the example he has given but potentially for other teams in the future. I look forward to hearing what she says.

I want to say a little about my two amendments in this group, Amendments 46 and 47. As we said in Committee, among the many changes the Government have made to the Bill, compared with the Bill that the previous Government brought forward in the previous Parliament, was one we understand the case for. In the earlier version of the Bill, there was a provision stating that the regulator must have regard to the Government’s foreign and trade policy when making determinations for the owners’ test. This is an example of a concern that UEFA raised. That has been reported publicly, and the Government were very clear when they made the change to the Bill now before us that it was in response to concerns by UEFA that this undermined the independence of the regulator and that if it was to have regard to the Government’s foreign or trade policy, it would be too close to the Government’s view, in the eyes of UEFA.

I can understand the rationale for making that change, but in Committee I expressed some concerns about the unintended consequences of that and the potential loopholes. I gave the example that if there were to be two potential foreign owners of a club, one from a friendly nation and one from a nation with which this country does not enjoy friendly relations—we can all think of some examples that would spring readily to mind in the troubled world we face today—we would all be clear on which way we would like to see the independent regulator come down, even if the Government are not able to direct it, or if it is not able to have regard to the Government’s foreign policy.

My Amendment 46 would insert a provision highlighting

“whether the individual is reasonably believed to be, or have been, involved in terrorism related activity”.

I am sure that noble Lords would not want such a person to be an owner or director of one of our prominent football teams.

Amendment 47 sets out a number of agencies—the National Crime Agency, the Security Service, the Serious Fraud Office and others—that the new regulator may consult in carrying out its test. I have watered down my amendment from Committee to say “may consult”, not “must consult”, in the hope that this will find some greater support from the Government. I understand the reasons for the change that they have made to the Bill, but I do hope that the noble Baroness will be able to look at these ways in which we might be able to tighten up the potential for a loophole, so that we can avoid seeing the sorts of people that none of us want to see taking control of English football clubs.

[Baroness Twycross (Lab)]

My Lords, I thank the noble Lords, Lord Parkinson, Lord Moynihan and Lord Fuller, for tabling their amendments, as it provides me with the opportunity to restate the Government’s position on these points and provide some clarification. I join the noble Lord, Lord Parkinson, in wishing Newcastle good luck in their forthcoming match. We can agree on some things in your Lordships’ House.

I start with Amendments 7 and 28, in the name of the noble Lord, Lord Moynihan. Before I go into a bit more detail, I would like to clarify whether incumbent owners or officers could be tested. Indeed, they can be tested. The regulator can test incumbent owners or officers where it has grounds for concern about their fitness or, for owners only, the source of their wealth—but, I repeat, only where there are grounds for concern. It is vital that we have a strong definition of an ultimate owner in order to give transparency to fans and hold owners to account. The Government are intent on providing the regulator with the tools to identify the ultimate owner as accurately as possible.

On the point from the noble Lord, Lord Moynihan, point on precedent, this is why the Bill’s drafting takes its lead from the precedent of other Acts using “influence or control”, including the Companies Act’s “persons with significant control” regime, and the economic crime Act’s “beneficial owners” regime. We are confident that we have the correct definition to achieve the Bill’s aim. It ensures that an individual who exerts significant influence over a club, more than that of any other owner, can still be identified as the ultimate owner even if they do not have formal legal control. In fact, without this definition, ultimate owners could circumvent regulation. It is fundamental that clubs have suitable custodians in order to secure the future of clubs and, most importantly, to protect the game that fans hold so dear. For these reasons, I hope that the noble Lord can understand the importance of the definition.

I turn now to Amendment 28. As I outlined in Committee, I agree that it is important that the industry has certainty as to what the regulator will consider significant influence by owners. That is why the Secretary of State’s guidance will be produced in good time in order to give this clarity. I want to make it clear that the Bill’s provisions that define “owner” in Clause 3 and Schedule 1 come into force on the day the Bill becomes an Act. That means that the obligation for the Secretary of State to produce this guidance comes into force on that day.

We have taken on board the valuable points the noble Lord raised in Committee. After looking at this again in detail, we stand by our position that the intent of this amendment is met without needing to change the Bill. We do agree that, before guidance is produced, clubs should not be expected to identify those who meet the definition of an owner by exercising significant influence or control. I would therefore like to provide greater reassurance that the scenario the noble Lord is concerned about should not be an issue. I can commit that the Secretary of State’s guidance will be produced before clubs are required to identify their owners who meet the definition of having significant influence or control to the regulator.

In response to the point from the noble Lord, Lord Pannick, on why we have not defined “significant influence and control” on the face of the Bill and are putting it in guidance instead, this approach is based on precedent. As I mentioned, the Companies Act also sets out the definition of “significant influence or control” in guidance rather than legislation. The Secretary of State’s guidance will give clarity to owners about who meets the definition.

Turning now to Amendments 42, 43, 44 and 45 in the name of the noble Lord, Lord Fuller, I think it was a bit cheeky and that one should take a slight exception to the notion that Delia Smith is just a cook. I would argue that she is, through her professional career, arguably also a highly successful businesswoman. Leaving that point aside, however, the requirement to notify is there for a reason. Keeping unsuitable owners and officers out is a core part of the regulator’s regime. We want the regulator to block these individuals from entering the system, and not to have difficult, costly battles to remove them after the fact. So it needs to know who a club’s respective new owners and officers are before they buy or join the club. Put simply, the regulator needs to be able to gather the information that it needs to test them and work with them and the club to ensure that they submit a proper application in good time. It will help the regulator prepare to act quickly when it receives the application.

Clause 27 plays another important function. If a person has, for whatever reason, become an owner or officer of a club without the regulator first having found them suitable, they still have to notify the regulator as soon as possible after the event. Without this provision, there could be untested, unsuitable individuals in the system that the regulator was unaware of.

I move now to Amendment 46, in the name of the noble Lords, Lord Parkinson and Lord Markham. We agree that it would not be right for money related to terrorism to find its way into our clubs. The Bill, as already drafted, already stops that through its provisions on serious criminal conduct. Serious criminal conduct includes offences listed in Section 41 of the Counter-Terrorism Act 2008. That is an extensive list of terrorism-related offences, ranging, to name a few, from membership of a banned organisation to encouraging terrorism to offences related to funding terrorism. Serious criminal conduct, including these terrorism offences, is considered under the ODT “source of wealth” and “honesty and integrity” tests. The club licensing regime lets the regulator block funding that is connected to serious criminal conduct. That is why we are confident that the Bill appropriately and thoroughly deals with terrorism-related activities.

Finally, I turn to Amendment 47, also in the name of the noble Lords, Lord Parkinson and Lord Markham. I am pleased to have another opportunity to highlight the information-sharing agreements that the regulator can and will use to its advantage. I absolutely agree that the regulator may need to work closely with other organisations and stakeholders when exercising its wider functions. I am grateful to the noble Lord for the discussions we have had on this point.

The Bill establishes a gateway for the regulator to share information with a range of organisations, including HMRC, the National Crime Agency and the Serious Fraud Office. It also creates a specific gateway for HMRC to share information with the regulator and empowers the Secretary of State to create other such gateways by regulations, as needed. The regulator may already consult whoever it needs to in order to make robust decisions. The regulator will seek information and expertise from relevant organisations to help it to stay live to both national and international concerns. The shadow regulator is already building a strong relationship with the NCA and law enforcement to ensure that the regulator is in a strong position to gather and receive the information it needs. We are confident that the Bill adequately empowers the regulator to gather such information. For the reasons I have set out, I would be grateful if the noble Lord could withdraw his amendment.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I thank the Minister for the two government amendments in this group. They reflect amendments I tabled in Committee. The first reduces the frequency with which the Secretary of State may revise the football governance statements, bringing it more in line with the parliamentary cycle rather than every three years. The second removes the Secretary of State’s power to amend the definition of the football season. This always seemed a disproportionate power. Why a Cabinet Minister ought to define a football season is a point that has bemused many football fans. I am grateful to the noble Baroness for Amendments 24 and 87, which she has brought forward on those points.

Like other noble Lords, I applaud my noble friend Lord Ranger of Northwood for his passionate speech in favour of his Amendment 27, which seeks to require the regulator’s annual report to include a review of the impact of its activities on ticket prices. The important argument here is not that the regulator should dictate ticket prices to clubs. I recognise the point that the noble Lord, Lord Hogan-Howe, made about how clubs often try the patience of their fans, but it is a commercial decision for clubs to take. There is a distinct possibility that the activities of the new regulator may force clubs to increase ticket prices further.

This is different from the point that the noble Lord, Lord Bassam of Brighton, made in pointing to the duty already in the Bill. The regulator will charge a levy to clubs. It will bring in higher compliance and legal costs, and many clubs will have to hire extra staff to comply with the new legal duties. That is all acknowledged in the Government’s impact assessment. When we couple that with the Government’s job tax, the increase in the minimum wage and the impending duties in the Employment Rights Bill, we can see that football clubs will be facing significant cost pressures over the coming years.

Inevitably, the only solution for many clubs—here I am thinking not predominantly about Premier League or Championship clubs but about clubs in League Two and the National League, which are the smaller and less well-off clubs—will be to hike ticket prices to offset these new and increased costs. It is clear that we need this assessment of the impact of the regulator’s actions on ticket prices. If Parliament is to give its assent and create this regulator, I think it owes it to fans to make sure that the impact of that cost is properly accounted for.

The noble Baroness, Lady Fox, my noble friend Lord Ranger and others have reflected on the fact that fans have very high expectations of this Bill and this regulator. They hope that the Bill, including the provisions in Schedule 4, will allow them to benefit from lower ticket prices, but I fear that the reverse is likely to be the case—higher costs leading to higher ticket prices for fans. I hope that my noble friend Lord Ranger will pursue his point on behalf of football fans across the country.

I am pleased that my noble friend Lady Brady has retabled her very sensible amendments to ensure that the regulator publishes guidance, not just to its functions under Clauses 21 to 25 but to its functions under the whole Bill. The regulator needs to translate the somewhat abstract powers and duties set out in the Bill into a more detailed and cohesive explanation of the rules it will be producing to support clubs in understanding precisely what will be expected of them. If it does that clearly, that may go some way to mitigating the costs that the new regulatory regime will impose on them. My noble friend’s Amendment 25 is a very simple one, but its impact would be helpful to all clubs facing these new regulations.

To the noble Baroness, Lady Jones of Moulsecoomb, the right reverend Prelate the Bishop of Sheffield and my noble friend Lord Gascoigne, I must regretfully say that I cannot support them on the amendment they have spoken passionately about. As I set out in Committee, we worry about the propensity for mission creep here. They have very wisely chosen to put their initiative behind Amendment 13, which is the more modest of the two and reflects an Act of Parliament that has already been passed with duties under it. While we cannot support the noble Baroness’s Amendment 13, neither will we oppose it if she presses it to a vote.

With renewed thanks to the Minister for the government amendments in this group, I look forward to her response.

[Baroness Twycross (Lab)]

I am not sure I have many original thoughts either, although I will try to address the points raised during the debate, starting with Amendments 12 and 13 in the name of the noble Baroness, Lady Jones of Moulsecoomb. I thank her for these amendments.

I am really comfortable with her absolute determination—as is her right—to raise environmental issues in every single way at every point of our deliberations in your Lordships’ House. The noble Baroness is right that we need to limit our impact. I note that she has support from the noble Lords, Lord Hogan-Howe and Lord Gascoigne, demonstrating her incredible ability to forge unlikely—some might say unholy—alliances with very noble aims. I apologise to the right reverend Prelate; I am not referring to him in that sweeping statement.

The Government are absolutely committed to environmental sustainability. One of the Prime Minister’s five national missions is to accelerate the transition towards clean energy and ensure that the UK fulfils its legal obligation to reach net-zero emissions by 2050. I agree with the noble Baroness, Lady Jones, and other speakers, including the right reverend Prelate the Bishop of Sheffield, that as a huge part of our national psyche, all sports, including football, have an important role to play in this transition.

The Government expect authorities across the sport to be working together to advance environmental sustainability. However, we do not feel it is right to add environmental sustainability to the regulator’s objectives or general duties. The bar for statutory intervention in any market should be very high. That is why the regulator’s focus should be on the problems that football has clearly shown itself to be unable to properly address through self-regulation.

By contrast, football has demonstrated the ability to take action on the environment. You only have to look at Forest Green Rovers as a brilliant example of a club taking action on environmental issues lower down the pyramid. At the highest level, the Premier League’s new sustainability pledge, involving a new minimum standard of action on environmental issues across both the clubs and the league, is another good example. This is only a starting point upon which future initiatives must build. Football authorities must take more proactive steps to accelerate their environmental initiatives. However, it is within the gift of the leagues, clubs and other authorities across the game to do so without government intervention.

This Amendment would also constitute scope creep, as highlighted by the noble Baroness, Lady Fox—something that I know noble Lords all agree we should be wary of, not least with the additional burdens it would impose on the regulator and the industry. Therefore, I hope the noble Baroness will not press these amendments.

Amendment 25 in the name of the noble Baroness, Lady Brady, seeks to bind the regulator to produce guidance on every aspect of its functions. In our view, this is disproportionate and would be a significant burden on the regulator. We are not aware of a precedent for any regulator being required to publish guidance about every single aspect of its functions. In many cases, it would be unnecessary and not relevant to clubs or competition organisers. This would involve engagement and consultation with clubs, adding significant burdens to them. The regulator will, where necessary, produce guidance in consultation with relevant stake- holders, in line with its duties and principles. I therefore hope the noble Baroness will feel sufficiently reassured to not move her amendment.

On Amendment 27 in the name of the noble Lord, Lord Ranger of Northwood, regarding ticket prices, the annual report is clearly a vital mechanism for the regulator to be held to account. I understand the desire to ensure that this report is comprehensive and covers necessary detail. It was really helpful to have his explanation of the intent of his amendment. I recognise how important ticket prices are to fans and recognise the noble Lord’s determination to raise this important issue on behalf of fans.

Ticket pricing is ultimately a matter for clubs. That is exactly why this Government have made it explicit in the Bill that clubs must consult their fans on ticket pricing as part of their fan engagement. This is the way to ensure that fans can have their voices heard on such an impactful issue; the annual report is not the most effective place to achieve this. The regulator may well choose to look at ticket pricing as part of the “state of the game” report. However, as it is a commercial decision, the regulator will not intervene, aside from ensuring that clubs consult their fans.

Museums and Galleries: Admission Charges for Non-UK Residents

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Thursday 6th March 2025 Lords Chamber

[Baroness Twycross (Lab)]

Funding for national museums supports museums and sites across London. The noble Baroness is correct that a large number of these museums are in London, but we do have national museum sites in Liverpool, Manchester, Bradford, York and St Ives. The Government have announced a new £20 million museum renewal fund, in addition to the more than £44 million a year that Arts Council England currently invests in museums. As the noble Baroness is aware, there is an ongoing review of Arts Council England, led by my noble friend Lady Hodge.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I welcome the answers that Minister has given, although a few ears will have picked up the word “currently” in her first response. But there are many downsides to reversing the legacy of the noble Lord, Lord Smith of Finsbury. It cuts against the excellent work that the sector has done to widen access, and it erects new barriers. Like other noble Lords, I do not want to see people turned away because they do not have their ID, or people from ethnic minorities challenged about their citizenship. Most of all, it lets politicians, local and national—of all parties—off the hook, when they should value and fund our museums. So might the Minister look at the VAT 33A scheme that her department runs and perhaps give it a more user-friendly name to help promote it? Might she even look at the 1964 Act, which gives local authorities a duty to deliver comprehensive and efficient library services, and widen that to museums as well?

[Baroness Twycross (Lab)]

I find myself having to defend giving good news to your Lordships’ House. I will have to write to the noble Lord on the specific VAT rule that he referred to.

Telegraph Newspapers

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Wednesday 5th March 2025 Lords Chamber

[Baroness Twycross (Lab)]

The noble Lord portrays a very bleak future in which we do not have the national newspapers of which so many of us are proud and about which noble Lords from across the House clearly feel very passionate. The SI mentioned by the noble Baroness, Lady Stowell, relates to an SI that has exceptions to the regime, around foreign investment, but does not go as far as allowing foreign state ownership or influence on the policy of UK newspapers.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, has the Prime Minister had any discussions with the Government of the UAE about this matter since he took office, for instance during his visit to the Emirates in December?

[Baroness Twycross (Lab)]

The noble Lord is right that the Prime Minister visited the UAE in December. I am not clear whether this issue was raised, but I am clear that we will continue to do whatever we can to reinforce the UK-UAE relationship more generally. Separate to that, we are taking forward the legislation that he led on when the party opposite was in government, which I hope to bring before the House in the near future.

Gaza: BBC Coverage

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Tuesday 4th March 2025 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, this is an incredibly serious matter. Public money may have ended up in the hands of supporters of a proscribed terrorist organisation. With the police and Ofcom both saying that they are willing to investigate this matter, and reports today that other broadcasters have used the same boy without making clear his parentage, would the Minister agree that a properly independent inquiry is needed and that the signatories to a letter urging the reinstatement of this contested programme—some of whom have been very well remunerated by the licence fee payer in the past—should not be heeded?

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

My Lords, it is right that the BBC is conducting a thorough investigation into what happened and who knew what, when. I will not prejudge the outcome of the BBC’s investigation. As the noble Lord is aware, the BBC is operationally and editorially independent of government, but we expect it to continue to follow robust procedures to protect taxpayers’ money and uphold the high standards the public and this Government rightly expect. The noble Lord will be aware of the letter that Ofcom sent the BBC, and the Secretary of State spoke to both the chair and the director-general of the BBC last week. She expects a clear response from them on a number of points.

National Lottery: Contribution to Good Causes

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Monday 10th February 2025 Lords Chamber

[Baroness Twycross (Lab)]

While I understand the legitimate interest of my noble friend and others, it would not be appropriate to comment at this stage on the legal process. The Gambling Commission is confident that it ran a fair and robust competition to award the fourth licence. As my noble friend noted, legal challenges relating to the award of the fourth licence are ongoing. DCMS is not a party to those, so it would not be appropriate to comment at this time.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, it was reported on Friday that the Gambling Commission had accidentally handed over more than 4,000 sensitive documents to the lawyers acting against it in the case that the noble Lord, Lord Harris of Haringey, mentioned. I know that the Minister cannot mention the ongoing case, but what conclusions have she, as Gambling Minister, and her department drawn about what that says about the Gambling Commission’s competence to perform its oversight functions, and about the appropriate oversight of our regulators by her department?

Cultural Sector: Freedom of Speech

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Wednesday 8th January 2025 Lords Chamber

[Baroness Twycross (Lab)]

While I support philanthropy, I am clear that there is a place for government funding as well. We need to make sure that we do not cut off people’s willingness to put money into the arts for fear of repercussions. We have to get the balance right between saying that the state should fund art and recognising that there is a valuable source and tradition of philanthropy in this country. For example, I think of Carnegie libraries. There is a huge tradition of philanthropy in arts and culture in this country that we should celebrate and want to continue, rather than rejecting it out of hand.

[Lord Parkinson of Whitley Bay (Con)]

I warmly welcome what the Minister has just said. Following a rather spurious campaign, including by Members of your Lordships’ House and the Society of Authors—it turned out that its own charitable arm had investments in fossil fuels—Baillie Gifford was bullied into ending its long-standing generous support for book festivals, including in Cambridge, Edinburgh, Wigtown, Cheltenham and Henley. Does the Minister share my concern about such campaigns? They cause great distress to the staff and volunteers who run such events. Does she agree that cultural events, such as literary festivals, are precisely the sort of forum in which people should be able to come together to exchange ideas and disagree constructively?

[Baroness Twycross (Lab)]

I would like to think that the art of disagreeing constructively is something we do reasonably well in your Lordships’ House—on most subjects. In relation to sponsorship, it is something we need to consider. People have the right to object to the work that organisations do, but when it is to the extent that people are feeling harassed in the workplace, we have to recognise that, with the right to express and protest comes a responsibility not to harass and intimidate those trying to do their job.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Wednesday 18th December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I rise to speak to Amendments 280 and 281, which my noble friend Lady Brady has set out admirably. She established the case for her amendments very well and raised a number of points that I hope the Minister will answer.

These amendments work in tandem to allow competition organisers to contract out of the backstop. Under this amendment, leagues would be able to agree a period for which a distribution agreement would last. Of course, they may not reach such a deal. In that case, the applicable period would be five years—the period that is currently the default in the Bill. Allowing leagues to have a greater flexibility to negotiate the length of time for which an agreement has to be in place before it can be renegotiated would establish better principles in the backstop. Surely, we should not preclude leagues from acting cordially, if they are able to, and agreeing a period for distributions. I fear that the Bill, as the Government have presented it, might discourage constructive working relationships where they may arise.

I am conscious that this is the last opportunity I will have to intervene on this final group before the Christmas Recess and I want to thank noble Lords across the Committee for the hard work they have put in. I know that noble friends on my side of the House are missing Christmas parties and wedding anniversaries this evening, and noble Lords across the House have been doing similar. Everyone is here because they care very deeply about the future of football—even if, like football fans, they disagree volubly on some of the details.

In particular I thank the Minister, who has responded to pretty much every group. Today was the first day that she did not, and even then she had only a brief time off the pitch. She has taken many interventions, she has been generous with her time outside the Chamber as well and she has written us a number of letters. I know we have asked her a few more questions and she will be writing to us further, but, in the meantime, I wish her and all noble Lords across the Committee a very merry Christmas and express my thanks to everyone for their work in scrutinising the Bill.

[Baroness Twycross (Lab)]

I thank the noble Baroness, Lady Brady, for her amendments and for her introduction to what was, thankfully, at this time of the night, with apologies, a very short debate—so far.

These amendments are intended to allow leagues to reach an agreement to extend the time that must pass before the backstop can be triggered. While I entirely understand the desire for negotiations to be a league-led process, the timeframe outlined in the Bill has been chosen to ensure that the regulator can intervene in cases where an agreement has not been reached for a significant period. We believe that it is the correct amount of time to get a good view of how potential agreements have affected sustainability, while ensuring that a new agreement is reached in a timely manner. Crucially, many noble Lords have talked about certainty in the regime. We consider that five years provides enough certainty to all parties.

Finally, we have concerns that allowing industry to come to a different timeframe could lead to an element of coercion towards much longer agreements, nulling the presence of the power. The Government’s view is that the five-year timeframe is critical to the effective functioning of the backstop as a regulatory intervention.

For the reasons I have set out, I am unable to accept the amendments and hope that the noble Baroness will withdraw Amendment 280. But, first, I also wish all noble Lords a very happy Recess. I genuinely look forward to continuing the debate in the new year and thank the noble Lord, Lord Parkinson, for his kind words.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Wednesday 18th December 2024 Lords Chamber

[Baroness Twycross (Lab)]

Like other noble Lords, I want to move on, but I shall repeat two sentences that I referred to earlier. Simply because an incumbent individual meets the definition, including if they exert significant influence or control, does not mean that the regulator is required to test them. It may test an incumbent owner if there are grounds for concern about their suitability. Now I think we should move on. I do not feel that is a can of worms, but I appreciate that the noble Lord has an alternative view.

Moving to the group under discussion, I thank the noble Lord, Lord Parkinson of Whitley Bay, and my noble friend Lady Taylor of Bolton for speaking to the amendments. On Amendment 206, in the name of the noble Lord, Lord Parkinson, the aim of the clause, as he knows, is to stop the possibility of clubs leaving to join a closed-shop breakaway competition, as several clubs attempted with the European Super League in 2021. While I appreciate the aim of the noble Lord’s amendment, the clause has been carefully drafted to ensure that there is no possibility of circumvention. That is why the duty also captures formerly regulated clubs, so an owner cannot remove a club from the specified competitions in favour of joining a new break- away competition.

It is unlikely that clubs in the sixth tier of English football or beyond will attempt to join a prohibited competition, so we do not think the risk that the amendment aims to cater for is a material one. What is more, if these clubs sought to join a competition that had been prohibited by the regulator, that would undermine the heritage and history of the club and should also be condemned—so it is no bad thing that the duty would capture them as well.

On Amendment 207, in the name of my noble friend Lord Bassam of Brighton, which my noble friend Lady Taylor spoke to, I acknowledge the intent to protect the clause from any risk of circumvention. However, we do not believe it is necessary to extend the scope of the clause to the new clubs or entities that are created to take on the identity and players of a formerly regulated club in order to participate in prohibited competitions. We believe this is a remote risk. Even if a club could convince its players to do this, convince its fan base to follow them and work through the legalities, the FA’s existing requirements around the registration of clubs and players would offer sufficient protection. For the reasons I have set out, I hope noble Lords will not press their amendments.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the Minister for her answers to the amendments in this group and for the clarification she gave on the comments on a previous group. I take what she says about breakaway clubs, but the point is for how long the provisions will still apply to clubs that drop out below the bottom level of this regulation through relegation, and why it lasts for so long. She has spoken before, rightly, about making sure that this is a proportionate regime. If you are a club that has been relegated to such a low tier and are unlikely to come back in, it feels like a very long time to have to continue to comply. That is the point that I was probing there. I might take that away and think about it further. If she has anything further to add on reflection, I would be very happy to receive that in a letter or pick it up in the discussions that we will have between now and Report—but that was part of the thinking there.

The noble Lord, Lord Addington, is right: the suggestion of another or an intermediate regulator would not be popular in all parts of this Committee, so I will let that issue rest.

My noble friend Lord Moynihan’s suggestion on the question of influence and foreign ownership is one that is perhaps better for us to talk about in our discussions between Committee and Report. I cannot be the only Geordie who is a bit confused and concerned about the implications for Newcastle United and I look forward to speaking to the Minister about that. But, for now, I beg leave to withdraw the amendment.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Monday 16th December 2024 Lords Chamber

[Baroness Twycross (Lab)]

I thank the noble Lords, Lord Jackson of Peterborough and Lord Parkinson of Whitley Bay, for tabling these amendments, and all noble Lords who have contributed to the debate. These amendments seek to add a requirement for a club to consult fans on any political statements or stances.

Amendment 244 in the name of the noble Lord, Lord Jackson of Peterborough, would additionally mandate fan approval of any political statement or political activity made by the club, its players or any other staff. This includes fan approval in relation to the issuing or wearing of items of clothing with political connotations. As the noble Baroness, Lady Fox of Buckley, outlined, what we view as political is disputed. It is not the place of a statutory regulator tasked with sustaining the stability of the game to limit or add approval processes for political speech or action or, indeed, to determine what is defined as political in the first place.

On Amendment 145, tabled by the noble Lord, Lord Parkinson, clubs may wish to consult their fans in this regard as part of their regular fan engagement. However, this is not something that the regulator will require of clubs. The Bill is intended to ensure that fans have a voice in key decisions regarding their club, but we need to make sure that this is proportionate. That is why we have not listed every possible issue that clubs should engage with their fans on in minute detail.

As has been mentioned, it is notable that many sporting personalities have used the attention that sports receive to campaign on issues that concern them. The noble Lord, Lord Moynihan, highlighted Marcus Rashford as an example. To be clear, we do not want to inhibit free speech. Instead, as is the case now, fans are equally able to use their own freedom of expression to protest political statements or actions made by their club. As well as potentially constraining freedom of speech, these amendments would not improve the regulator’s ability to deliver its objectives. I therefore ask the noble Lord to withdraw his amendment.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the Minister and to all noble Lords who have spoken on this group for their considered thoughts. Like the Minister, we do not want to inhibit free speech. The difficulty is in questions of an acceptable political gesture or article of clothing conflicting with the free speech of those who take a differing view. That is where it is important for clubs to be mindful of the wide range of views that are out there and to have an earnest conversation with their fans and with society more broadly.

The noble Lord, Lord Addington, is right to mention the poppy. Sadly, it is already an article contested by some—we have crossed the Rubicon that he warned us to be wary of. The noble Baroness, Lady Fox, alluded to the sectarianism that there has been for a long time in certain football clubs. This is not a new matter but one which is growing and where there are new, more complicated areas of contention. I agree with the sentiment that a number of noble Lords expressed that it is important to get politics out of football.

I hope that the Minister will reflect further on this ahead of Report. I am grateful to noble Lords for their thoughts and beg leave to withdraw my amendment.

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[Baroness Twycross (Lab)]

My Lords, I am very grateful to the noble Lord, Lord Parkinson of Whitley Bay, for these amendments, which address changes to club heritage assets and what should be safeguarded by the regulator. I if may say so, this debate could be used as the definition of a lordly debate.

The Government understand that the amendments in the name of the noble Lord seek to avoid a misuse of any heraldic terms. I am grateful for the historic background that he gave in what was one of the Committee’s more unusual contributions, but one from which we all learned a great deal.

This specific clause is intended to work in tandem with the FA heritage protections, with the regulator acting as an enforcement backstop to the FA’s rules. The FA’s heritage protections use the term “crest”, and therefore this amendment would risk the regulator being out of step with the rest of the industry. However, I stress to the noble Lord that officials have liaised with the College of Arms on this. We are keen to ensure that the Bill does not incorrectly signal that the regulator would ever override the separate process of the College of Arms. We have engaged and will continue to engage with the College of Arms to ensure that it is content. This may be something that we return to upon further discussions with the college and the FA. I acknowledge the intent of these amendments but, for the reasons that I have outlined, ask the noble Lord, Lord Parkinson, to withdraw his amendment.

[Lord Parkinson of Whitley Bay (Con)]

I am very grateful to the Minister for the way that she has engaged with this and her promise to look at it further. She is right that this is a very House of Lords issue, but I was alerted to it by comments on social media from those who watch your Lordships’ proceedings, so it is both an ancient and a very modern issue, and one about which people feel very strongly.

I am glad that the Minister has begun dialogue with the College of Arms. Just because others are getting it wrong, it does not mean that we should get it wrong in legislation. For the reasons that I have set out, I think that we can nudge towards the present legal position in the Bill. I am grateful to the Minister for that and will certainly take her up on the offer to discuss this further between now and Report.

In my research I was pleased to learn that a football first appeared in heraldry as far back as 1604, when the Clarenceux King of Arms at that time granted arms and a crest to Sir William Jordan, who was briefly a Member of Parliament for Westbury. Noble Lords may be as surprised as I was to learn that a football appears in the 17th century grant given to him. His crest is

“A football or encircled by a scroll inscribed PERCUSSA RESURGO”—

“Struck, I bounce back”. That message of resilience is perhaps one to cheer us on as we consider these amendments in Committee. I beg leave to withdraw my amendment.

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[Baroness Twycross (Lab)]

I thank the noble Lords, Lord Markham, Lord Moynihan and Lord Parkinson of Whitley Bay, for tabling these amendments. I will take them in turn.

On Amendment 170, in the name of the noble Lord, Lord Markham, I understand that the intention behind the amendment is to allow the regulator to block a club from accepting funding that it reasonably suspects to be harmful to the interests of the United Kingdom. I agree that it is important to protect clubs from harm; that is what the Bill as a whole seeks to do. The intention of having this power, as set out in the Bill, is to protect English football from illicit finance and keep it out of the game. Illicit finance is inherently unsustainable.

However, I caution the noble Lord as to the implications of a football regulator discerning what is harmful to the interests of the United Kingdom and then blocking such funding. This is not something that a regulator can determine. They can make evidenced-based decisions on facts in a clearly defined framework. It also must be noted that there are protections in the Bill that go beyond protecting against serious criminal conduct to protect against wider harm. For example, the owners’ and directors’ test will look at the fitness of a club’s owners and officers, including any criminal history and investigations and whether the individual has been prevented from entering the UK. This seeks to protect English clubs from unsuitable owners or officers making decisions that may endanger their club. This, in conjunction with the power to restrict funds suspected to be connected to serious criminal conduct, will help to ensure that clubs are protected from harm.

I turn to Amendments 194, 196 and 197 in the name of the noble Lord, Lord Parkinson. On Amendment 194, I reassure the noble Lord that the intent of his amendment is already achieved within the current drafting. When assessing an owner’s or officer’s fitness, the regulator must have regard to any criminal convictions and proceedings, including those included in Schedule 1 to the Serious Crime Act 2007. Membership of a proscribed organisation is an offence under the Terrorism Act 2000, and that offence is included in paragraph 2A of Schedule 1 to the Serious Crime Act. Consequently, the current provisions in the Bill deliver the intent of this amendment. I hope that he is reassured by that.

On Amendment 196, I agree that it is vital that the regulator has access to information when assessing the suitability of owners and officers. The regulator may need to work closely with other organisations and stakeholders when exercising its wider functions. That is why the Bill establishes information-sharing arrangements with a range of organisations including the National Crime Agency and the Serious Fraud Office and why it adequately empowers the regulator to gather information, including from other organisations, to assess suitability. However, to require the regulator, as the amendment would, to always consult multiple organisations, even when this is not necessary to its ability to make an assessment, would be disproportionate. It would lead to slow decision-making, impacting on growth and investment. It would be a wholly unnecessary burden on clubs. As part of the fitness test, officers will be assessed on their competence, specifically their qualifications, experience and training.

Amendment 197 would give the regulator discretion as to whether to consider these matters when assessing competence. General public law obligations would still require the regulator to act consistently and fairly when testing officers. However, this amendment would give officers less certainty about what they will be tested on.

Finally, on the amendment from the noble Lord, Lord Moynihan, the whole point of the owners’ and directors’ test, which has been carefully designed, is to ensure that club custodians are suitable for assessing an owner’s fitness—this is absolutely crucial. It is right that any owner passes the tests set out in the Bill, so it would not be fair, appropriate or responsible to exempt certain types of owners from testing, but that is precisely what this amendment seeks to do. This amendment intends that owners with diplomatic status or who are Heads of State, Government Ministers or high-ranking officials of foreign Governments would not be tested. I do not need to tell noble Lords about some of the people this could exempt from testing. That means that the regulator could not consider any personal finances or criminal history, no matter how egregious. Instead, it would have to ignore these matters, so the regulator could be letting unsuitable owners in. This could be incredibly risky for the club, and any incumbent owner captured by this amendment could also never be tested, even if concerning information subsequently came to light.

Suitability should be based purely on an impartial assessment of the criteria set out in the Bill. This will ensure that the test can be applied consistently, remain fair, transparent and robust, and focus on whether an individual is suitable to own a football club. For the reasons I have set out, I would therefore be grateful if the noble Lord would withdraw his amendment.

[Lord Parkinson of Whitley Bay (Con)]

As the Minister spoke, I wondered whether the staff and relevant board members of the regulator will have the requisite security vetting to be able to consider some of the matters that they might need to in this area. One reason I was keen that they engaged the appropriate authorities was to make sure that things which are, by nature, highly classified and sensitive can be provided to them so that they can give advice. If the Minister is not accepting my amendment to open the channels of dialogue there, is she able to say anything, now or later in writing, about the vetting that staff and others at the regulator would receive?

I am conscious that immediately before we came into this Committee, the Minister’s noble friend the Lord Privy Seal moved the Motion to appoint members to the Intelligence and Security Committee. We make sure, rightly, that people who are suitably qualified are able to look into this area of our laws. I wonder whether she can just say a little, now or later, about the vetting and assistance that staff will have?

[Baroness Twycross (Lab)]

I could talk at great length about this, but instead, I reassure noble Lords that I can confirm that staff will be able to engage with all relevant authorities on such issues.

[Lord Parkinson of Whitley Bay (Con)]

I appreciate that it is late. If the noble Baroness could put some of what she might have said in a letter, that would be useful. It is unfortunate that we are reaching what is a rather serious subject at what I know is a late hour with very few people left in Committee, but it would be helpful to hear a bit more about this as we ponder the issue further ahead of Report.

[Baroness Twycross (Lab)]

I would like to make it explicit that they will have the relevant clearance to deal with this issue.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the noble Baroness for that. If there is more she is able to say, I am sure that other noble Lords who are not able to be here and who take an interest in these matters would appreciate that.

The noble Baroness said that the regulator is not really equipped to decide what is harmful to our national interest. That is why, in our version of the Bill, we had the provision on taking into account UK trade and foreign policy. I know the reasons why the Government have taken that out of the Bill—because of the concerns UEFA and others raised about political independence—but I worry that, in doing so, we might lose something about our national interest which is quite important. That is why I was seeking to reinsert that criterion into the consideration. We might come back to that issue once she is able to say anything more that she wishes to, and once other noble Lords who are interested can join the discussion on this point.

Given the hour, and with gratitude to the noble Baroness for all her answers today, I beg leave to withdraw my amendment.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Monday 16th December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I will speak to my Amendment 111, which is part of this group, and pick up some of the points that my noble friends have raised in the debate.

My Amendment 111 states that the Secretary of State should not be permitted to revise a football governance statement simply because there has been a “significant change” in government policy on football. The reasoning for this comes from much the same place as my noble friend Lady Brady’s Amendment 110: both try to prevent the possibility of frequent changes in the Government’s policies for the regulator. If the Secretary of State took up every opportunity that the Bill allows to alter the governance statement—it could be every three years, after every general election and after every change in government policy—we could see this governance statement being altered rather frequently, every few years, with effects on the stability of football.

How would clubs have the certainty they need to plan their investment? As my noble friend Lady Brady said, football clubs plan their infrastructure and stadium developments over periods of 10 to 15 years or more. The talent pipeline, which is needed to develop the players of the future, requires much more than five years of careful thought and investment. To do all this and deliver the sustainability of English football, clubs need to know what the policies of the regulator will be over the long term. They need to know what the regulator will require of them.

My noble friend Lord Hayward reflected on a broader point in his remarks. The Government have been at pains to stress the importance of the independence of this regulator. I do not doubt their intention, but how will that independence be maintained when there could be regular and changing political statements setting out the policies to which the regulator will have to adhere? We need some assurances that these governance statements will not interfere with the operational independence of the regulator. To do that, it seems much more sensible that the Secretary of State should not be able to revise these statements on a whim or because the department’s Secretaries of State are changing with the regularity that we have seen in recent years.

I hope the Minister will address the points that have been raised and look favourably on these amendments. I look forward to her reassurances.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

I thank the noble Baroness, Lady Brady, and the noble Lord, Lord Parkinson of Whitley Bay, for their amendments. Clause 11 permits the Secretary of State to publish a statement on government policy related to football governance. The statement is non-binding, but the regulator will be required to have regard to it when exercising its functions.

On Amendment 110, in the name of the noble Baroness, Lady Brady, we believe that, given the fast-paced nature of football and the changing regulatory landscape, every three years is a suitable time to pass before the Secretary of State can amend this statement. This decision was reached following consultation with other regulators.

There is no duty on the Secretary of State to amend or publish a statement every three years, unless there is reason to. I understand the noble Baroness has concerns that this could present an opportunity to exert political influence on the regulator and thus a risk to the regulator’s independence. Although this is a standard provision for most economic regulators, I recognise the intent behind the amendments, to reduce the risk of interference.

The noble Lords, Lord Parkinson and Lord Hayward, raised concerns that this clause might limit independence. The football governance statement cannot be used to direct the regulator’s day-to-day operations, so it will not impinge on the operational independence of the regulator. The Bill has been brought forward as a result of the policy of this and the previous Government. As the noble Lord, Lord Pannick, made clear, the regulator’s statutory scope and powers would remain unchanged and it would be under no obligation to act in accordance with any statement. We want to ensure that the regulator remains free of any undue political interference; this drafting, as with the previous Government’s version of the Bill, achieves that.

The noble Baroness, Lady Brady, and the noble Lord, Lord Maude of Horsham, raised concerns around UEFA’s position in relation to this clause. As I have reiterated previously, we have engaged extensively with both the FA and UEFA in the development of the Bill. As has been confirmed by the FA, we are confident that the Bill as drafted will not breach any UEFA statutes. The regulator will be operationally independent of the Government and will not exert an undue influence on the FA’s ability to govern the game. This was confirmed by the FA itself in oral evidence given to the House of Commons Public Bill Committee on 14 May during the passage of the previous Bill introduced by the last Government.

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[Baroness Twycross (Lab)]

The noble Lord and I may need to agree to disagree on the level and extent of the consultation. The culmination of consultations between officials and the various meetings that have taken place constitute very sound consultation. I was concerned that it might appear to your Lordships and to people externally that only seven clubs had been met during the whole course of the design of a new regulator, which I think all noble Lords would agree would be highly unusual and undesirable. I may return to that point; noble Lords may raise it again in Committee. I look forward to further discussion of what constitutes consultation.

I thank the noble Lord, Lord Markham, for his Amendment 124, which creates a mechanism for the regulator to delegate its function to the competition organisers. I understand that some noble Lords believe that the regulator should act as an overseeing body, only acting through the leagues and only stepping in once the leagues have failed to address a problem or, in some instances, not wishing the regulator to exist at all. Without wanting to disappoint noble Lords, including the noble Lords, Lord Maude of Horsham and Lord Hayward, the noble Baroness, Lady Brady, and others who support this amendment, I am afraid that the model of regulation is not one that we are proposing and nor is it the model that the previous Government proposed. Notwithstanding the points that have been raised repeatedly, this is now this Government’s Bill and we are very proud to bring it before your Lordships.

The fan-led review laid bare the issues with industry self-regulation, and this is an amendment where it is important for your Lordships’ Committee to reflect on the fact that football has had ample opportunity to get this right. We are legislating only because the leagues do not have the incentives and governance structures to address these problems adequately.

I agree with the point made by the noble Lord, Lord Goddard of Stockport, that this amendment could be argued to represent a bear trap. I also agree with a number of points raised by the noble Lord, Lord Pannick, and the noble and right reverend Lord, Lord Sentamu. As has been demonstrated, compliance with current competition organiser rules has not proved an effective way of ensuring sustainability of the game. That is precisely why a new bespoke regulator is required, with the powers, incentives and agility to act where competition organisers are unable to.

However, I want to reassure the noble Lord that the regulatory system is already designed in such a way that the regulator should not need to intervene if the required standards are already being met. If clubs are meeting their threshold requirements naturally—for example, through their compliance with the industry’s existing rules—then the regulator will not need to apply discretionary licence conditions. There is also the more formal

“Commitments in lieu of … discretionary licence conditions”


mechanism, where leagues will be given an opportunity to address specific identified financial problems so that the regulator does not need to attach a licence condition.

Beyond this, however, we do not believe that the regulator should delegate functions to the leagues—there would be a significant issue of accountability. In a case where a function was delegated and serious failings happened, accountability would then be hard to ascertain. We also do not think that a power for the Secretary of State to direct the regulator would be appropriate. Not only could that constitute undue political influence on the regulator but it would also open the door to continuous lobbying by competition organisers for regulation to be delegated to them. What is more, the amendment would allow the Secretary of State to give this direction and for regulation to be delegated back to the industry without any prior parliamentary scrutiny.

On the points raised by the noble Baroness, Lady Brady, about the FA’s willingness to take on delegated functions, my department continues to have discussions with all stakeholders, including the FA, on a range of issues. It is encouraging that there is willingness in the industry to tackle the problems of financial sustainability. However, as the fan-led review clearly showed, the industry has not proved able to take forward the reforms needed at this time due to the governance and constitutional arrangements in place, as well as lacking the expertise required to deliver the regime we have been discussing. An independent body free of industry influence is needed; now is not the time to delegate functions. However, as with all aspects of the Bill, the Government will keep under review the effectiveness of the regime to deliver regulation. For these reasons, I am unable to accept the amendment, and I hope the noble Lord will withdraw it.

[Lord Parkinson of Whitley Bay (Con)]

I thank the noble Baroness. Is she saying therefore that we are, in essence, past the point of no return in relation to some of the competition organisers? I take what she says about the discretionary licence conditions that are available to the regulator that give it a bit of leeway with those that get their house in order, but if football were to get its act together, does she not foresee a circumstance in which some of the functions that are going to be given to the new regulator could be given to organisers, whether at the direction of Secretary of State, or by the choice of the regulator?

[Baroness Twycross (Lab)]

I agree that statutory regulation should exist only where it is necessary. In our view, the regulatory system is already designed to be proportionate so that intervention can automatically scale up and down as needed. Clubs that are already well run and are lower risk should not face additional requirements. We want standards in the industry to improve, and if this were to happen and the market was derisked, I would expect the regulator to be less involved and less noticeable. I want also to stress that the regulator will not stop the leagues imposing their own competition rules so long as they do not conflict with the regulator’s regime. However, this is not an amendment which we feel would serve the sector well, and that was why I asked the noble Lord to withdraw it.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, I have added my name to the amendments in this group, and I certainly agree with what the noble Lord, Lord Pannick, has suggested in relation to Amendment 125. We are grateful to him. The noble Lord, Lord Addington, is right that we are seeking to make sure that we get the right balance with this group of amendments. We are keen to close the unfortunate gap that the Bill currently poses, which is that, if it passes without amendment, nobody will know what rules the regulator might yet specify or the period in which it might specify them. We need a bit more clarity for those preparing to be regulated and wanting to do so in this way would be useful. With gratitude to the noble Lords who have done the work of the Committee and suggested ways in which to improve on this ahead of Report, I look forward to hearing what the Minister thinks.

[Baroness Twycross (Lab)]

My Lords, I thank the noble Lord, Lord Markham, for tabling these amendments, and the noble Lords, Lord Pannick, Lord Addington and Lord Parkinson of Whitley Bay, for what has been a short but constructive debate. If the noble Lord, Lord Pannick, was, as was suggested by the noble Lord, Lord Addington, making changes on the hoof, I hope that he will accept that I am not going come up with a response on the hoof, but I will endeavour to look into the points that he raised and will get back to the whole Committee subsequently.

Starting with Amendment 125, I understand the desire for quick implementation, and the desire to make sure that clubs are given clarity on what is required of them as soon as possible. However, we believe that the regulator should not have an arbitrary deadline imposed on it to make rules relating to the application of provisional operating licences. The regulator should be able to conduct an effective consultation with clubs regarding the rules around this clause, and that should not be rushed. The regulator is already encouraged to be expedient, including in its regulatory principles, though I note that in a previous debate the noble Lord, Lord Parkinson of Whitley Bay, raised some concerns around the definition of “expedient”, which we are still looking into. Beyond this principle of being time-efficient, the regulator should not be subject to arbitrary, tight deadlines that would serve only to limit its operational flexibility.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, like the noble Baroness, Lady Taylor of Bolton, I always balk when I see a group described as miscellaneous, or even worse in this case, “misc”. On the failure to give new names to the groups that have been degrouped, it is always helpful to have a go at giving us a theme. But I am grateful to the noble Lords who have covered a wide range of very important issues in this group.

I wanted to say a few words about my noble friend Lord Markham’s Amendment 332, to which I have added my name. A number of noble Lords raised in previous debates the concerning example of the delegated power for the Secretary of State to decide what and when a season is. I am glad we have had opportunity to discuss that on its own. This delegated power seems to be egregious. I am not quite clear why the Secretary of State should have a say on what constitutes a football season. I am not even sure why this delegated power is necessary—apart from granting the Secretary of State more powers over the game, there does not seem to be any particular advantage to her in granting herself this rather curious power. I would be interested to hear the Minister’s response. I wonder whether UEFA has a view on this measure. Would it not regard the Secretary of State being able to intervene in the definition of a season as political interference? If the Government have had discussions with UEFA on this point, I would be grateful to know.

I do not think the noble Lord, Lord Mann, actually got round to speaking to his Amendment 153 in this group, which relates to modern slavery—such are the pitfalls of a miscellany—but I wanted to highlight that one and congratulate him on bringing it forward. I am sure all noble Lords would agree that everyone has a duty to prevent this abhorrent crime. I was very proud to work at the Home Office when my noble friend Lady May of Maidenhead brought through the Modern Slavery Act 2015, which has made large headway into cracking down on this abhorrent behaviour. Since then, both the Premier League and the English Football League have released an annual anti-slavery and human trafficking statement, as have all the participating clubs. As the Minister knows, I am wary of increasing the scope of the regulator, but I would be interested in hearing how she thinks this new regulatory regime will operate within the law that we already have to tackle modern slavery and what she thinks of the amendment from the noble Lord, Lord Mann.

I am grateful to the noble Lord, Lord Pannick, for his comments on football agents. Whether they are more or less popular than lawyers, I will leave to others to decide—and indeed whether the existing regulation that is brought about by UEFA and others he mentions is, in this case, sufficient and not a requirement for further regulation, as we see in some of the other behaviours in football. I leave all these, and the miscellaneous other issues that noble Lords have raised, to the Minister to respond to.

[Baroness Twycross (Lab)]

I thank noble Lords across the Committee for the thorough debate on this group. If the group is called misc or miscellaneous, that does not diminish the significance of the concerns raised.

I will take each amendment in turn. First, I thank my noble friend Lord Mann for his Amendment 129. While it is right that the regulator should have all relevant details of the club’s finances when assessing it for an operating licence, we do not believe this detail is required to be provided in the Bill. The personnel statement should detail any key individuals working specifically at the club in question and should not include external individuals. However, any relevant financial arrangements can be included within the strategic business plan, or the financial plan, if the regulator deems this necessary.

My noble friend Lord Mann and the noble Lords, Lord Goddard of Stockport and Lord Evans of Rainow, raised concerns about agents and their fees. A different perspective—it is always helpful to get a rounded perspective—was raised by the noble Lord, Lord Pannick. In response to the broader point regarding agents, as was noted, FIFA has recognised the need for the better international regulation of agents and has proposed reforms. FIFA’s member associations, such as the FA, will retain the ability to introduce stricter requirements on agents than those stipulated in FIFA’s regulations. The DCMS will work closely with the FA to ensure that any national regulations for agents are fit for purpose. The Government are working with the FA and FIFA to track the implementation of these regulatory reforms, which are due to begin next year.

Amendments 150 and 164, in the names of my noble friends Lady Taylor of Bolton and Lord Bassam of Brighton respectively, concern assets of community value. Home grounds are often the most important assets that a club owns. That is why the Bill has prioritised key protections to prevent them being sold, used as collateral or relocated without the necessary considerations. “Asset of community value” status is another mechanism that a number of clubs and supporters’ groups have obtained for their home grounds.

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[Baroness Twycross (Lab)]

I am not sure that the Secretary of State would find it onerous, because it is not intended to be used very often. However, the noble Lord makes an interesting point and I appreciate that he made it in the spirit of being helpful.

This is not a power for the Secretary of State to dictate to the industry what a season is; it is the opposite. The power as currently defined in the Bill will ensure that the definition can flex to changes in the industry. It will also be subject to the affirmative parliamentary procedure, so I hope noble Lords will rest assured that the House will be able to scrutinise any changes. I am happy to continue to discuss that further with noble Lords after Committee.

[Lord Parkinson of Whitley Bay (Con)]

I think it would be helpful if the Minister took this away, discussed it and maybe checked whether a solution like the helpful one my noble friend Lord Moynihan suggested might be possible. That would remove one of the delegated powers that the Delegated Powers Committee has raised concerns about.

I was struck by the answer the Minister gave to the intervention from the noble Lord, Lord Bassam, reassuring him about various matters of gameplay that are not within the scope of this regulator. The timing of the season seems to sit closer to things that she reassured him are not the job of the new independent football regulator to look at than to delegated powers for the Secretary of State. I hope she will take this away and continue discussions ahead of Report, because that feels like a very straightforward and sensible suggestion.

[Baroness Twycross (Lab)]

I was getting to the point where I was offering to take it away, so I think we are in violent danger of agreeing. On the question of the House being able to scrutinise any changes, I think we will return to this issue later, before Report.

Amendment 259 is from my noble friend Lady Taylor of Bolton. I understand that concerns have been raised about the ways in which rules are made in the industry today, including in recent legal cases. However, the Government’s view is that the amendment as drafted is not appropriate. The scenarios listed in Clause 55(6) could well be time sensitive and urgent. They may require immediate action from both competition organisers and the regulator. It would not be right to burden the competition organiser with a requirement to consult every member club for the purpose of informing the regulator of changes to the regime on an issue that may not affect them all. We would, of course, expect competition organisers to be carrying out appropriate consultation on their own rules. However, we are wary of the regulator mandating and prescribing how the leagues develop their rules.

I will finish on the two government amendments, Amendments 320 and 330. They both correct erroneous cross-references and make no change to the content of the Bill.

For the reasons I have set out, I hope that the noble Lord will withdraw his amendment.

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[Lord Parkinson of Whitley Bay (Con)]

I think that is an informal one from fans of other north London clubs. But clearly the names of clubs do matter, and we would be interested in whether the Government agree with that.

Given the time, I will address the other amendments in this group as a whole. They attempt to require clubs to consult a whole host of different supporters’ organisations, community trusts and fan groups. I share the concerns raised by my noble friend Lord Jackson of Peterborough that, if clubs are required to consult numerous different groups—chosen through various methods and representing countless, and often competing, interests—it will be difficult for clubs to know to whom they are to listen. What opinions will they have to take on board and whose interests will win out? There is also a concern about whether this could lead to divisions forming among supporters’ groups of differing views, as they seek to influence the activities of a club in a manner that they would like.

I am concerned by what the noble Lord, Lord Mann, said about football clubs picking the people who sit on their fan groups. That sounds like having a House of Parliament entirely dominated by the Executive—but that is for another Bill. The concern about this one is the old adage that too many cooks spoil the broth; that is, if we tried to have too many people vying to influence the views of a club, it would be difficult to differentiate the differing sounds and, perversely, fans’ voices would be drowned out in that cacophony. So a simpler approach might be required for fan engagement.

Trying to have a better answer to the question of who fans are, as we have said previously, runs to the heart of all this. But I agree with what my noble friend Lord Maude said: clubs are well advised to take on board the views of fans. They listen to them because they are the lifeblood of the clubs, and they make their views known pretty volubly.

[Baroness Twycross (Lab)]

I thank noble Lords for their continued engagement on these important provisions of the Bill. I appreciate that I am one of the very few things standing between noble Lords and the dinner break, but I want to give a proper response and, I hope, the reassurance that my noble friend Lord Bassam of Brighton is looking for. We must not forget that, at the heart of all of this, it is the fans who matter the most. Football is nothing without them, and the fan engagement threshold requirement has been designed to reflect this. As the noble Baroness, Lady Brady, said, fans are the lifeblood of the game.

My noble friend Lord Bassam’s Amendment 138 seeks to make it explicit that clubs must have the appropriate structures in place to engage effectively with fans. I hope noble Lords can take comfort that this is already implicit in the Bill. The Bill already asks for all clubs, in order to meet their fan engagement threshold requirement, to have adequate and effective means to consult and take the views of fans into account. It would therefore not be possible for a club to meet this bar without also having the appropriate structures and processes for effective engagement with its fans.

On my noble friend Lord Watson of Invergowrie’s Amendment 138A, it is important to avoid fan engagement becoming a box-ticking exercise for clubs. The intent is to ensure that dialogue can be constructive for both parties. This is why the threshold requirement requires a club to consult fans on the relevant matters. Consultation goes beyond just a meeting, which might lead fans to have only a passive role at their clubs. Instead, we expect clubs to seek input from fans on issues, with that input directly feeding into the decision-making or a club’s understanding of an issue.

I do, however, reassure my noble friend that the expectations on clubs will be proportionate to club resources and the demographics of the fan base. I hope that other noble Lords, including the noble Baroness, Lady Brady, also feel reassured by that point. This will not be the same as the statutory consultation, and we expect that the regulator will provide more detail about what consultation should look like in practice. This will allow for a bespoke approach to be taken across clubs.

My noble friend Lord Watson raised points around making fan engagement more explicit. The intention of the regulatory principle is not to list every possible stakeholder the regulator should ever engage with during the course of regulation, however important that stakeholder might be. That could be a slippery slope to an enormous list that risks—

National Youth Strategy

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Tuesday 10th December 2024 Lords Chamber

[Baroness Twycross (Lab)]

We are really keen to see the Combined Cadet Force grow, and the MoD funding in this academic year supports the ambition to grow to 60,000 cadets in 500 school cadet units across the UK. That is in addition to the annual cost to the MoD of the Combined Cadet Force, which is estimated at more than £42 million a year.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the decision by the noble Baroness’s department three weeks ago to close the National Citizen Service dismayed a generation of young people and the many brilliant organisations that work with them. As my noble friend Lord Cameron says, it transformed the lives of more than 1 million young people. The organisation UK Youth has pointed out that the Government’s decision, as well as their failure to renew the youth investment fund, will take hundreds of millions of pounds out of the sector, including funding for around 250 youth organisations that were expecting to work with NCS from April. Why did the Government take this decision to announce the closure of NCS rather than looking at ways to repurpose it, and without announcing what might replace it and plug the gap it leaves behind?

[Baroness Twycross (Lab)]

As the noble Lord will be aware, there is a whole host of other programmes delivered by the department in addition to the National Citizen Service. We did not want to do what the previous Government did with vinspired and let the organisation wither on the vine.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Monday 9th December 2024 Lords Chamber

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Hayward, for moving Amendment 68 on behalf of the noble Lord, Lord Maude of Horsham, and all noble Lords for their thorough discussion of it and the other amendments in this group. The amendment, along with Amendment 89 from my noble friend Lady Taylor of Bolton, seeks to place additional reporting requirements on the regulator to increase transparency and accountability.

On Amendment 68, I understand the desire to ensure that the success of English football is protected and that the regulator monitors, evaluates and can be held accountable for its impact on the factors set out in Clause 7. However, the impact of the regulator in these areas should already be reviewed in both the “state of the game” report and the regulator’s annual report. This is true also in respect of Amendment 89. The annual report that the regulator will be required to produce and lay before Parliament at the end of each financial year will be on the exercise of its functions. The Secretary of State may also direct the regulator on what that annual report must include; they could, for example, already require the regulator to report on each of the specific aspects, including those in my noble friend’s amendment.

It is absolutely right that the regulator can be made to report on specific aspects of its performance and that these can vary from time to time, depending on the activity of the regulator and the state of the industry. We strongly expect that the regulator’s annual report would naturally include how well it had fared in advancing its objectives, but rest assured that if the regulator did not naturally report on this, the Secretary of State could direct it to.

[Lord Parkinson of Whitley Bay (Con)]

Does the Minister accept that if the Secretary of State decided that was not necessary but Parliament wanted to hear it, as the Bill is drafted, it is the Secretary of State who wins that? This is decided by the Executive and not by the legislature. Does she not think there is a role for Parliament to be a bit more assertive in what it would like to hear, rather than relying on a Secretary of State who shares its wishes and is willing to facilitate that?

[Baroness Twycross (Lab)]

I assume that if the relevant parliamentary committee felt that it was not getting the information it required, it would have quite an interesting evidence session with the regulator. It would be a very brave Secretary of State who did not include the information that Parliament wanted in an annual report of that nature or ask the regulator to do that. I can see the noble Lord shaking his head. I am not convinced that anything I could say on any of the points raised would satisfy him so, with respect, perhaps I could move on to other points.

[Lord Parkinson of Whitley Bay (Con)]

The Minister is accidentally proving my point. This is the frustration of parliamentarians when we ask questions and do not get what we want from an Executive. She is right that there is a role for Select Committees here, but I worry that the Secretary of State may not need to be that brave to avoid asking for these things. We are just keen to probe how Parliament can be a bit more precise in making sure it gets what it wants, but I will let her continue.

[Baroness Twycross (Lab)]

I suggest that noble Lords might discuss this at further length with the shadow regulator. As noble Lords will be aware, they have made themselves available and I am sure that, as the Bill progresses, they would be happy to have further conversations.

I turn to Amendment 120 from the noble Lord, Lord Markham. As I touched on earlier, the annual report is a vital mechanism for the regulator to be held to account. I therefore understand the desire to ensure that this report is comprehensive and covers the necessary detail. It will be in the power of the Secretary of State to specify any required contents, which are not, as Amendment 120 would ask for, all listed in the Bill. This is so that a much more adaptive approach can be taken, year by year, and so as to not constrain the issues that should be covered in the report.

With regard to Amendment 121, I reassure the noble Lord, Lord Parkinson of Whitley Bay, that the annual report will be laid before Parliament so that it can be scrutinised. If it is not, the regulator will be in breach of its statutory obligations; therefore, the intent of this amendment is already achieved.

Moving on to Amendment 122 from my noble friend Lord Bassam of Brighton, I thank him for raising this issue and am sympathetic to his viewpoint. Women’s football was discussed in the previous group of amendments and, as I outlined, the Government support the recommendation of the independent review of women’s football, published in July 2023. It set out that the women’s game should be given the opportunity to self-regulate, rather than moving immediately to independent statutory regulation. We appreciate, however, that this situation may change and that women’s football might need to be brought into scope down the line to safeguard its future.

As is clarified in the Explanatory Notes, the Secretary of State will already keep under ongoing review whether it is appropriate to amend the specified competitions. Clause 2(5) already requires the Secretary of State to carry out a formal assessment, including consultation, before doing this and to publish and lay its results before Parliament. The assessment can be triggered at any point so if any change in circumstance occurs, the Secretary of State is able to react. We therefore think that the principle of this amendment is already catered for and do not believe it is right for a clause with a specified timeline to be added to the Bill.

The Government recognise the intent behind Amendment 328 from the noble Lord, Lord Ranger of Northwood. It is vital that the regulator is transparent about the burden that its regulatory activities may have on clubs and competition organisers so that it can be held accountable. From the start, we have been clear that we wish to establish a regulator for football that will take a proportionate approach to regulation. We do not wish to introduce a regulator that will impose onerous and burdensome requirements on the clubs. That is why the regulator will have a statutory requirement when exercising its functions to have regard to the desirability of avoiding impacts on features such as competitiveness and investability. We expect that the impact of the regulator on the market, including on regulated clubs and the leagues, will be reviewed in both the “state of the game” report and the regulator’s annual report.

I reiterate: the Secretary of State and Parliament will be able to scrutinise these reports. We believe that this ongoing accountability is more appropriate than a one-time review by the Secretary of State six months after the Act has passed. It would not be fair or indeed helpful to evaluate the regulator’s performance or impacts after just six months of a brand new regime. For the reasons I have set out, I hope that the noble Lord will withdraw his amendment.

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[Lord Parkinson of Whitley Bay (Con)]

I thank my noble friend and the noble Lord for rightly recalling him. It is right that he and professional footballers are getting the attention they deserve. I look forward to the noble Baroness’s response.

I have risen to speak to my amendments in this group—Amendments 74, 75, 76, 82, 84 and 85—as well as to express my support for Amendments 73 and 83 in the name of my noble friend Lord Markham and Amendments 86 and 87 in the name of my noble friend Lord Maude of Horsham.

My Amendment 74 focuses on the meaning of the word “expedient”. I know the noble Baroness, Lady Taylor, did not like it last time I mentioned a dictionary definition. The noble Lord, Lord Goddard, reached for his dictionary earlier in today’s Committee, so I hope she will not mind me doing so. I think it is important in this instance because in the Cambridge English Dictionary the word “expedient” is defined as,

“helpful or useful in a particular situation, but sometimes not morally acceptable”.

I was quite struck by that definition. I am not quite sure why a regulator, a public body, should be using its resources in a manner that is sometimes improper or immoral, and I think it is worth scrutinising the choice of that word and the message it might send to the independent regulator.

Our choice of language matters, particularly where legislation is concerned. The words in front of us in the Bill, as well as those uttered by the Minister from the Dispatch Box opposite, can be called upon in a court of law and relied upon to explain decisions and decide appropriate courses of action. The regulator will be deriving its power from this Bill and will be operating according to the principles set out in Clause 8, so it is an absolute necessity that the language in the Bill is clear and well chosen, and I do not think “expedient” meets that test.

A number of the amendments in my name and that of my noble friend Lord Markham in this group are very simple. As the noble Lord, Lord Addington, highlighted, they change “may” or “should” to “must”. I echo the points that he made, and that the noble Baroness, Lady Taylor of Bolton, made when she had an amendment making the same change earlier in the Committee. When moving that amendment, she noted that it was pretty straightforward, and I would make the same observation about our amendments today.

In seeking to make these straightforward changes, we are asking the Government why the less rigorous words “may” and “should” have been used in these instances. That is important to ascertain because of the significance of establishing the regulatory principles in the Bill. The first principle is that the regulator should use its resources in the most efficient—“expedient” as presently set out—and economic way. However, any public body that will be taking funds from the public purse, which this regulator will in its initial period, must be required to use its resources in the most efficient and economic way possible. The word “should” gives a degree of leeway here. I am sure that the clubs that will be paying the levy would not be happy with the regulator using the money they are giving it in an inefficient and uneconomical manner, so Amendment 73 attempts to tighten the phrasing here and remove that leeway.

My Amendment 75 would change the “may” to a “must” in paragraph (b). This would mean that the Bill required the regulator to co-operate and engage with the relevant parties. That amendment is complementary to my Amendment 76, which would leave out the words

“so far as reasonably practicable”.

Again, that amendment is about tightening up the wording of this provision to give the regulator strict instructions rather than looser intent.

I have put my name to Amendment 79 alongside those of the noble Baroness, Lady Taylor of Bolton, and the noble Lords, Lord Bassam of Brighton and Lord Addington, which would also amend paragraph (b). The amendment would add fans as one of the parties with which the regulator must co-operate and would therefore standardise this paragraph with other portions of the Bill.

My other amendments in this group—that is, Amendments 82, 84 and 85—would all change a “should” to a “must”. Amendment 82 would amend paragraph (d) so that the regulator must acknowledge the unique sporting context of football. That is particularly important for regulated clubs since, as the Bill rightly points out and as my noble friend Lady Brady and others have been keen to stress, football clubs operate in a very different environment from other businesses. The top clubs in the English football pyramid will have teams in both national and international competitions, so the rules and regulations they will already be required to follow must be taken into account by the new regulator.

My Amendment 84 states that the independent football regulator must hold officers of a club responsible for the actions of the club where appropriate.

Amendment 85 says that the regulator must operate transparently. Transparency, of course, has a wide range of benefits. The Institute for Government, in its report The Benefits of Transparency, argues that:

“Collating and publishing government data can also help improve the performance of government services, through the monitoring of key metrics and by increasing access to data across government”.


The Institute for Government also points to benefits relating to improved efficiencies, accountability and value for money. Given all this, surely the Bill’s language should seek to require this new regulator to operate with that sort of transparency as well.

I will not enter into the debate that we had over the rival Back-Bench Labour Amendments 80 and 81 from the noble Lords, Lord Shamash and Lord Mann—although the noble Lord, Lord Addington, in true Liberal Democrat fashion, has signed both. I am interested in the Minister’s view as to whether, between those two, she has a preference in consulting supporters, trusts or elected representatives of football club supporters’ groups. I will not reopen the question of the definition of fans, but I am interested in whether she has a preference between those two amendments.

[Baroness Twycross (Lab)]

My Lords, I thank the noble Lords, Lord Markham and Lord Parkinson of Whitley Bay, and, through them, the noble Lord, Lord Maude of Horsham, and my noble friends Lord Bassam of Brighton, Lord Watson of Invergowrie, Lady Taylor of Bolton, Lord Shamash and Lord Mann, for these amendments. This has been a wide-ranging debate.

I particularly welcome the intervention by the noble Lord, Lord Goddard, and the clarity that he provided. I have noted a number of noble Lords coming back and asking me similar questions to those that we have we had in previous groupings. I will endeavour to continue to give the same answer when required, but it was helpful for the noble Lord to point out that at times we are having a circular and repetitive discussion.

Amendments 73, 74, 75, 76, 82, 83, 84 and 85 in the name of the noble Lords, Lord Markham and Lord Parkinson, intend to reword the regulatory principles. They seem fundamentally driven by the desire to ensure that the regulator is held more strongly to the principles. However, we are confident that the current wording of the Bill, which has not changed since the previous Conservative Government laid this Bill before Parliament, is more than sufficient to ensure that the regulator operates in an appropriate way and strikes the balance between steering the regulator’s approach and not impinging on its adaptability and independence. By laying out explicitly in the Bill the principles by which the regulator should exercise its functions, we are already making a clear statement about the importance of these stated factors. However, these are intended to be principles, not duties, and the drafting reflects that.

In relation to the questions from the noble Lord, Lord Addington, on the difference between “must”, “should” and so forth, we do not agree that the regulator must be required to do these things at all times and in all cases but rather that some flexibility is important. To give an example, if the regulator were enforcing against a club, it might not be appropriate or possible for the regulator to constructively engage and co-operate with that club, as principle (b) encourages it to do. By having these principles as “should” and not “must”, that flexibility is achieved.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I have the only amendment in this group. Amendment 88 is intended merely as a probing amendment to give us the opportunity to ask the Minister what the Government’s policies will be with regard to the other legal requirements that will be placed on the regulator. I am simply seeking some clarifications here, which I hope she can give.

The amendment states that the independent football regulator must be bound by the Freedom of Information Act 2000 and the Equality Act 2010. I note that Schedule 12 addresses these issues by inserting the name of the independent football regulator into the respective Acts of Parliament, but I am seeking clarification principally on how the Government will put in place concrete plans of action to ensure that the regulator abides by both those Acts.

I must admit that I have not read from cover to cover Sir Tony Blair’s memoir A Journey, published in 2010, but there is one passage that I have read and re-read with relish. It is brief so, mindful of the entreaties of the Government Chief Whip but noting the fans of Sir Tony on the Benches opposite, I will quote it:

“Freedom of Information. Three harmless words. I look at those words as I write them, and feel like shaking my head till it drops off my shoulders. You idiot. You naive, foolish, irresponsible nincompoop. There is really no description of stupidity, no matter how vivid, that is adequate. I quake at the imbecility of it. Once I appreciated the full enormity of the blunder, I used to say—more than a little unfairly—to any civil servant who would listen: Where was Sir Humphrey when I needed him? We had legislated in the first throes of power. How could you, knowing what you know have allowed us to do such a thing so utterly undermining of sensible government?”


I was struck by that passage. It bears returning to. There are lessons there for a Labour Government with a large majority and seeking to legislate in new ways to reflect on. But this is the law of the land and these are important Acts of Parliament. I would be grateful if the Minister could clarify what actions the Government will take to ensure that the regulator acts with the transparency required under the Freedom of Information Act, notwithstanding Sir Tony’s views on it now, and the Equality Act 2010. I beg to move.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson of Whitley Bay, for this amendment to ensure that the regulator must comply with the Freedom of Information Act and the Equality Act. This is, of course, very important. That is why, per the consequential amendments outlined in paragraphs 4 and 9 of Schedule 12, the regulator will already be subject to these Acts. As a result, this amendment would duplicate this requirement that is already in the Bill and is therefore not necessary. As the noble Lord will be aware from his time as a Minister, legislation should be clear and concise where possible. His amendment would lengthen the Bill to duplicate an existing requirement. On that basis, I hope he will feel able to withdraw it.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the Minister. As I say, I was mindful that it is in Schedule 12, but she did not give much additional information on how the Government will seek to work with the regulator in making sure that it is adhered to. However, I appreciate that that is for the regulator. I am grateful to her for those reassurances. I have not yet had the pleasure of reading the former Prime Minister’s memoir from cover to cover so, with Christmas coming, I note that my wish list is still to be filled. I beg leave to withdraw my amendment.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I will briefly say a few words about my Amendments 106, 108 and 109. Given the hour, I will not speak at length. As with the other amendments in this group, these concern the “state of the game” report. I am grateful to all those who brought amendments in this group and who have contributed to it.

My Amendment 106 is attempting to address a very similar point as does Amendment 105, tabled by the noble Baroness, Lady Taylor of Bolton, and the noble Lord, Lord Bassam of Brighton. Both amendments are attempting to reduce the period in which the regulator will have to publish the first “state of the game” report. As the noble Baroness noted, my amendment changes this from 18 months to six months, whereas theirs looks to change it to 12 months, but the reasoning behind both is the same. The sooner we understand the state of the game under this new framework, the better we can refine and improve the regulator’s role. I think that the sooner that happens the better, but I am not precious about the precise time.

Amendment 108 in my name requires the “state of the game” report to be published every four years to allow for a full and proper reappraisal of the issues facing football. The original draft of the Bill, when it was introduced by the previous Conversative Government, set the period for republishing the report at three years, and the current version sets it at five. With this amendment, I am trying to probe the Government as to why they have made the change that they have in this instance, and I would be grateful if the Minister could say.

With Amendment 109, again, I am trying to probe the Government’s intent. The Bill includes numerous references to consultations with fans, but it does not include any reference to engagement with fans on the draft “state of the game” report. I am curious as to the reasoning behind the drafting. If the Government believe that fans should be consulted elsewhere in the Bill, why not in this instance and with this provision?

I will not speak at length to the other amendments in this group that the noble Lord, Lord Bassam of Brighton, and the noble Baroness, Lady Taylor, have tabled, but I am grateful to them for their thoughts in doing so.

I will touch on Amendment 103, because I am conscious that the noble Baroness, Lady Jones of Moulsecoomb, is not here to mention it. Her amendment deals with the question of environmental sustainability. That falls very much into the category of the baubles on the Christmas tree that my noble friend Lord Moynihan of Chelsea would be very sceptical of. While football has a role to play in tackling climate change, the regulator must ensure that its focus remains on football governance. In the noble Baroness’s absence, I wanted to make sure that her amendment was noted, and if the Minister has anything to say on it, I am sure that she will be grateful to read it back.

Amendment 104, in the name of my noble friend Lord Markham, and to which I have added my name, attempts to expand the scope of the “state of the game” report. This requires the regulator to include an assessment of the overall financial health of football, an assessment of the current state of fan engagement and an overview of the current regulatory functions that are carried out by existing football bodies. We think that these additions are crucial. Financial health is the bedrock of football’s future, and fan engagement is its very soul. We must also respect and leverage the expertise of existing bodies, such as the FA, in ensuring that the regulator complements, rather than duplicates, their efforts.

The amendments tabled in this group reflect the wide-ranging interests and challenges facing English football. On these Benches, our priority is to ensure that the Bill creates a framework for governance that is robust, focused and effective. We must protect the integrity of the game, empower clubs to succeed and respect the fans who are its beating heart. I hope the Minister will seek to do that too in her response.

[Baroness Twycross (Lab)]

I thank my noble friends Lord Bassam of Brighton and Lady Taylor of Bolton and the noble Lords, Lord Parkinson of Whitley Bay, Lord Markham and Lord Addington, and the noble Baroness, Lady Brady, for tabling these amendments and for the discussion of them. I will take them in turn.

I turn first to Amendment 94 in the name of my noble friend Lady Taylor of Bolton. While I understand the intent behind this amendment, we do not consider it necessary and believe the Bill already covers this issue, and I hope that this reassures her. The positive social impact of regulated clubs in their communities features in the very definition of the sustainability of English football in Clause 1, so we fully expect that the regulator will naturally cover these areas in the “state of the game” report.

I turn to another of my noble friend Lady Taylor’s amendments in this grouping, Amendment 100. While the areas that my noble friend highlights, such as environmental sustainability and ethics, are important, they are not within the remit of the regulator and therefore will not be in scope of the “state of the game” report. In so far as the other areas are relevant to the regulator’s functions under the Bill, it already has the power to report on, for instance, a club’s general financial sustainability.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Monday 9th December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, we did not quite give the noble Lord, Lord Blunkett, the debate of under an hour that he hoped for, but I note, for the benefit of the Government Chief Whip when he comes to read the Official Report, that this group is composed entirely of Labour Back-Bench amendments. We have heard the arguments and motivations for tabling the amendments advanced by noble Lords who did so; we have tested their arguments and examined the intended and unintended consequences. That is the work of this Committee, and I am glad we have done it. We had a fruitful and useful debate with quite a lot of agreement between noble Lords about their anxieties and some of the problems that we want to solve, but also some shared anxieties about the problems that might flow from the way in which the noble Lords who tabled the amendments propose doing so.

I start on a point on which I think we all agreed and add my strong support for the amendments in the names of the noble Lords, Lord Blunkett and Lord Knight of Weymouth, and those who signed them, including the noble Baroness, Lady Grey-Thompson, about independent non-executive directors. They are sensible and constructive amendments. One reason we have been moving quite slowly in this Committee is perhaps, as is often the case, that the Government have listened to the debate and rejected all the amendments tabled so far, urging noble Lords to withdraw them and saying that they are not necessary. Amendments 54 and 157 are good amendments on which to break that trend; there was clear support for them from across the Committee, including the Cross Benches. I hope that, even if the Minister is not willing to accept the amendments as drafted, she will in this case look at how we can strengthen the oversight of the work of clubs through the work of independent non-executive directors.

I am particularly grateful to the noble Lord, Lord Burns, for his contribution and the support he gave to amendments we have previously discussed about the independence of the chief executive and the way in which they are appointed. There is some valuable stuff there for the Government to take away. It is very much linked to the broader debate we have had about diversity. If we can get the non-executive leadership of clubs right, then, as well as improving the scrutiny and accountability of the work of those clubs, we will add to their diversity—not just the diversity of the personnel sitting on the boards but the diversity of thought and the open-mindedness to make sure that the clubs are continuing the work that noble Lords have rightly pointed to. That includes making sure that they continue to be open, inclusive and growth-focused, concerned with attracting new fans to football and making sure that talented people, whoever they are and whatever their background, are able to rise as far up the football pyramid as their talents will take them. I hope the Minister will look favourably on Amendments 54 and 157.

Like other noble Lords, although I appreciate the motivations behind the other amendments in this group, particularly Amendment 156 in the name of the noble Lord, Lord Bassam of Brighton, I am worried about some of the consequences that might flow from it and the way he proposes it. That is not to disagree with what other noble Lords have said about the important issue that he raises, or to lose sight of the huge progress that has been made. I was not around in the 1960s, 1970s or 1980s, of which the noble Lord, Lord Goddard of Stockport, rightly reminded us, but the behaviour of football and football fans and clubs in those decades was often not to the credit of this nation. We should be very proud of the strides that football has made, voluntarily, through the work of its fans and the people who operate the clubs, in being a more inclusive and welcoming environment open to the talents of everybody.

I know why the noble Lord has probed this area. He wants the work that is undeniably still needed to build on that to continue. Like other noble Lords who have probed it, I worry about some of the practicalities and where his amendment, as worded, would take us. There is a material difference between monitoring the diversity of a workforce and the diversity of a fan base and season ticket holders, as I think the noble Lord would acknowledge. I would particularly be concerned about asking fans and ticket buyers to disclose quite sensitive information that they do not presently share with the football team of their choice about their religion, ethnicity, sexuality and so forth. I am not quite sure how, for season ticket holders, that work would build on things.

Amendment 249, tabled by the noble Lord, Lord Mann, gives me the opportunity to echo the thanks that my noble friend Lord Moynihan expressed to him for his work on tackling anti-Semitism, not just in football but more broadly. I was in Downing Street when he first took on the role as the Government’s independent adviser on anti-Semitism, so I have seen the work that he has done in a number of spheres to tackle prejudice in that area.

Noble Lords will undoubtedly agree that diversity and inclusion in the workplace can be of benefit not just to staff but to an organisation corporately. The noble Lord, Lord Mann, expressed that this was a probing amendment to see what the Government’s view was and to highlight some of the work that football does. He is right to do so, particularly on that last element, because clubs across the football pyramid have a number of strategies and are doing great work in this area through their own volition. Arsenal, for example, have had a diversity, equality and inclusion plan called Arsenal for Everyone since 2008. Arsenal did that by themselves; they did not require a regulator to force them to publish a plan.

Article 27 of the UEFA club licensing regulations, which detail the standards that clubs must meet before they can participate in a UEFA competition, contains social and environmental sustainability conditions. It states that:

“The licence applicant must establish and implement a social and environmental sustainability strategy in line with the UEFA Football Sustainability Strategy 2030 and relevant UEFA guidelines, for at least the areas of equality and inclusion, anti-racism, child and youth protection and welfare, football for all abilities, and environmental protection”.


That is a wide-ranging list of good causes for it to encourage people to think about. There is not exactly a lack of corporate governance requirements in this area already placed on clubs, and noble Lords have pointed to a number of highly commendable initiatives to build on our work here.

I was in your Lordships’ House on Friday when the noble Lord, Lord Mann, spoke in the archiepiscopal debate that we have in the run-up to Christmas, led by the most reverend Primate the Archbishop of York. He warned against the temptation to reach for the legislative lever in every instance to drive forward good work. This is an area where a lot of great work is already being done, to the credit of people in football. I would be wary about measures that are too restrictive or prescriptive that would cut against that.

I will not go into the details of the lively debate that my noble friend Lord Reay and others had, other than to note that these are issues which are not party political; they were raised at Second Reading by the noble Lord, Lord Triesman. My noble friend Lord Hayward’s intervention reminds us not just of his long-standing and pioneering role in championing inclusion in sport but of the fact that these are complicated matters that sport and so many parts of society are grappling with. I do not think that writing something into this Bill in the way that is envisaged would help that, but I am very grateful for the opportunity to have had a detailed debate on this. It has been useful, and I look forward to the Minister’s response.

[Baroness Twycross (Lab)]

I thank my noble friends Lord Blunkett, Lord Bassam of Brighton, Lord Knight of Weymouth, Lord Mann and Lady Taylor of Bolton for tabling these amendments. I thank the noble Baroness, Lady Grey-Thompson, for the role she has played in supporting some of the amendments. It has been useful to have the discussion. The debate is a reminder that, at times, players are often at the brunt of quite a lot of unpleasantness, not least on social media.

I am sure that noble Lords across the Committee will join others who have spoken about the dreadful accident that took place at the weekend involving Michail Antonio, and wish him a speedy and full recovery. I cannot imagine what it was like to take the phone call that the noble Baroness, Lady Brady, had to take. Our thoughts are with him and his family and colleagues.

Good corporate governance is the bedrock of any well-functioning business, and there is agreement on this across the Committee. However, the Government believe that this has been lacking at some clubs to date, and that is why it will be an important part of the regime.

I begin with Amendment 54, in the name of my noble friend Lord Blunkett. While I agree with the intention, I assure my noble friend that ensuring regulated clubs have good corporate governance is already well provided for in the Bill; for example, the mandatory licence condition requiring clubs to report against a new corporate governance code for football clubs. We do not feel it is appropriate to add this level of specificity to the regulator’s objectives. As my noble friend made clear, good governance protects fans and owners. Good corporate governance will contribute to a club’s financial soundness, which is already captured within the objectives in this clause.

Amendment 156, from my noble friend Lady Taylor of Bolton, and Amendment 249, from my noble friend Lord Mann, concern equality, diversity and inclusion. I strongly agree with the principle of these amendments that clubs should be more transparent with regards to equality, diversity and inclusion. However, I believe that Amendment 249 is not necessary. As part of the corporate governance statement mandatory licence condition, all licensed clubs will already be required to report on what action they are taking on equality, diversity and inclusion. The Bill specifically includes equality, diversity and inclusion in its definition of corporate governance. We therefore expect to see recommendations about equality, diversity and inclusion in the regulator’s corporate governance code.

On Amendment 156, as I have outlined, clubs will already be required to report on what action they are taking on EDI. My noble friend Lord Mann mentioned important examples of where clubs are already taking action. I agree with the comments made by the noble Lord, Lord Moynihan, on my noble friend’s contribution, particularly as it relates to anti-Semitism. I also agree with many of the points raised by the noble Lord, Lord Hayward, in his contribution.

Reporting on the diversity of staff and senior managers would be typical of how these types of transparency measures work. However, regarding the point on season ticket holders, we do not feel that it is the regulator’s place to act here. As a financial sustainability regulator, the regulator’s interest in equality, diversity and inclusion is that it contributes to good corporate decision-making, which in turn makes clubs more sustainable.

I agree with the noble Baroness, Lady Brady, that, beyond this, it is not for the regulator to get involved in the diversity of a club’s fan base. A club might like to take note if its fan base does not represent its local area. Some examples of clubs reaching out to communities have been mentioned by noble Lords in the course of the debate. There are already actions being taken on fan diversity by clubs, competition organisers and wider stakeholders.

In response to the points made by the noble Baroness, Lady Fox, we think that EDI reporting is a good thing. A lack of basic good corporate governance threatens the sustainability of football clubs. We have seen in the past crises at clubs that may have been avoided with some simple improvements to how the club was run. That is why the regulator will introduce a new football club corporate governance code. The regulator will work with the industry to design the code and will support clubs in applying it, in addition to encouraging best practice.

The requirement for clubs to publicly report against this code is designed to increase transparency, scrutiny and accountability. Clubs will have the flexibility to interpret the principles of the code and explain how they have applied them to suit their individual circumstances. We are clear that the regulator will not prescriptively micromanage each club’s board. That is not its role, and would cause a significant burden to the regulator itself and to clubs.

Amendment 157, in the name of my noble friend Lord Knight of Weymouth, seeks to add a further limb to a club’s corporate governance reporting by explaining how it meets the standard of the UK Corporate Governance Code in relation to the appointment of non-executive directors. I thank him for raising this issue and the noble Baroness, Lady Grey-Thompson, for illustrating why a range of skills—what she referred to as a jigsaw—helps in delivering good governance.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to my noble friend Lord Markham for setting out the amendments in this group and, in his absence, my noble friend Lord Maude of Horsham. He tabled some of these amendments but, as we heard earlier today, is unable to be with us to speak to them.

This group of amendments concerns the general duties of the independent football regulator. Its role is to ensure the long-term sustainability, fairness and competitiveness of football in the UK; that is vital. The regulator is entrusted with overseeing the interests of clubs, players, fans and other key parties in the sport, so its role is invaluable. It is critical, therefore, that we lay out clearly and concisely, if we can, its duties and responsibilities.

The amendments in this group seek to provide the independent football regulator with a clear and effective framework in which to carry out its responsibilities, and to strike the right balance between governance, competition and the continued growth of the sport.

I speak in support of Amendment 61, which would introduce a duty for the new regulator to advance the growth objective. The whole Committee can agree on wanting football to flourish, expand its reach, and continue to thrive both on and off the pitch. That is the intention of Amendment 61 and the growth objective. Football’s growth, in participation and in financial sustainability, is critical for its future. The amendment before us would ensure that the regulator’s actions remain firmly aligned with advancing football’s expansion, ensuring that the sport continues to thrive and serve the interests of all involved, from grass roots to the professional game.

Amendment 59 proposes removing the phrase

“so far as reasonably practicable”

from Clause 7. This would complement Amendment 61 by strengthening the regulator’s mandate. By removing what is superfluous and ambiguous language, we would help to ensure that the regulator is not constrained by excessively cautious qualifiers. Instead, it would be given a clearer, more explicit duty to act decisively in line with its core responsibilities, including the imperative of promoting growth in the football sector. In the previous debate, we proposed additional wording that the Government did not need; here, we are seeking to help concision by striking out terms that we think are ambiguous and superfluous.

Amendment 61A, tabled by my noble friend Lord Maude of Horsham, highlights the importance of the independent regulator in working within existing competition structures where they are already operating effectively. The new regulator should not interfere unnecessarily with systems that are working well and delivering positive outcomes. Instead, it must focus on enhancing and supporting those structures, ensuring that they remain adequate and capable of meeting the needs of the game. That would prevent the duplication of regulatory functions and ensure maximum efficiency.

My noble friend Lord Maude’s Amendment 64 seeks to safeguard the integrity of football competitions by ensuring that the football regulator avoids actions that could undermine the important work and effort of competition organisers. His amendment would set a useful boundary between the regulator and the autonomy of clubs. Additionally, it would ensure that the independent football regulator does not conflict with the existing rules set by competition organisers. These protections are important for preserving the competitive spirit of football, which drives both the sporting and commercial success of the game. By ensuring that the regulator respects the frameworks that are already established, these amendments would permit football to evolve without unnecessary disruption and foster an environment where the sport can flourish at all levels.

My noble friend Lord Markham’s Amendment 67, which I have signed, seeks to ensure that the independent regulator avoids actions that could undermine competition. That competitive spirit is fundamental to football’s success, both in the excitement engendered among fans and the drive for clubs to grow and innovate. This amendment seeks to ensure that regulatory actions do not unintentionally harm what is such an essential element of the sport.

Finally, Amendment 69 seeks to strengthen the clarity and focus of the regulator’s mandate by ensuring that it operates consistently with the objectives outlined in Clause 6. Clause 7(3) states that the regulator must have regard to its regulatory principles, the “state of the game” report, the football governance statement and any guidance published. Curiously, though, it does not state that the regulator must have regard to its objectives under Clause 6. If the objectives are to mean anything, surely the Bill should try to create a duty for the regulator to have regard to those objectives in exercising its functions. I am curious as to whether that is a gap that we could close here.

The amendments in this group work together to provide the new independent football regulator with a clear, direct and effective framework for fulfilling its duties. They seek also to set out distinct boundaries and make sure that the regulator’s powers do not encroach on the competitive spirit of the clubs. I hope the Minister thinks that, in doing that, they strike the right balance between regulation and freedom. I look forward to her thoughts on this.

[Baroness Twycross (Lab)]

I thank the noble Lords, Lord Markham and Lord Maude of Horsham, for tabling these amendments and the noble Lords, Lord Markham and Lord Parkinson, for speaking to the amendments in the absence of the noble Lord, Lord Maude.

I start with Amendment 59, in the name of the noble Lord, Lord Markham. The regulator’s purpose is to protect and promote the sustainability of English football. To deliver this, the legislation sets out three clear objectives: club financial soundness, systemic financial resilience and heritage. It absolutely follows that we would expect it to always act with that purpose and those objectives in mind.

This amendment would have consequences for both the regulator and the industry. The result is that the regulator could face considerably more risk of legal challenge, even if it acted reasonably and in good faith in a way that it intended to advance its objectives. If the regulator always had to prove that any action it took was directly compatible with its purpose and would advance an objective, this would introduce a considerable burden on the regulator and the cost would ultimately be paid for by industry and, potentially, indirectly by fans. We are confident that Clause 7 as drafted appropriately constrains the regulator to act in line with its purpose and objectives without introducing unnecessary, costly and restrictive procedural burdens.

I turn to Amendment 61, also in the name of the noble Lord, Lord Markham. As set out in the previous group, we appreciate the intent of amendments on this topic and agree that English football should continue to be as successful as it has been, but we do not believe that a growth objective is necessary to safeguard this. The sole aim of the Bill is to address issues that football has shown itself unable to resolve to ensure the financial soundness of clubs and the resilience of English football, and to safeguard the heritage of English football. As with the previous amendments in group 3, this amendment would dramatically widen the scope of the regulator, which is not something the Government wish to do. In order to satisfy the duty that this amendment proposes to always advance growth in every action it takes, the regulator would end up intervening on issues that affect growth, rather than effectively solving the problems it has been set up to tackle.

On Amendments 61A and 64, in the name of the noble Lord, Lord Maude of Horsham, we are confident that the Bill is already clear that competition organisers will not be unduly restricted in how they manage their competitions. The regulator has a clear regulatory principle to co-operate constructively with competition organisers and to recognise the wider footballing context, including existing competition-specific rules. Let me be clear: the regulator will not be deferring to the leagues or their rules, but it is in no one’s interests for there to be conflict. The regulator will not be standing in the way of clubs’ ambitions. Provided they do so prudently, we have always been clear that clubs will be able to invest, spend and take calculated risks. This is reflected in the legislation.

On Amendment 67, in the name of the noble Lord, Lord Markham, while I understand the desire to explicitly protect the financial interests of the leagues, this amendment is unnecessary given the existing statutory duties including in the Bill. As I mentioned, the Bill already requires the regulator to consider the competitiveness of regulated clubs, alongside any potential adverse effects on financial investment. Clearly, these things impact on the competitiveness and success of the leagues themselves. Additionally, where we consider it relevant to specific functions of the regulator, there are explicit requirements for it to consider the potential impact on the finances of the leagues. For example, as part of the backstop process, the regulator has a specific duty not to choose a proposal that would place an undue burden on the commercial interests of either league.

Finally, on Amendment 69, in the name of noble Lord, Lord Markham, I reassure the noble Lord that the desired intent is already achieved by the wording of Clause 7(1). This states that that the regulator

“must, so far as reasonably practicable”,

advance the regulator’s objectives when exercising its functions. To meet this duty to advance its objectives, the regulator would have to have regard to its objectives, so the intent of the amendment is already achieved.

For the reasons I have set out, I am not able to accept these amendments and ask that noble Lords do not press them.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, like others, I am grateful to the noble Lord, Lord Mann, for moving his Amendment 65, which probes an important area and a potentially concerning consequence. I am grateful for the example that he raised of Solihull Moors and look forward to the reassurances that I hope the Minister will give. However, even if she gives those reassurances, the noble Lord’s amendment is modest and I wonder whether there is a case—belt and braces—for us to make an amendment saying that the regulator should work in a way that does not have an adverse impact on women’s football. That feels sensible, even if the Minister does not share the concern about the specific instance that her noble friend has raised.

Like others who have spoken, we on these Benches are full of praise and excitement for the role that women’s football and women’s sport more generally play in our society. The noble Baroness, Lady Grey-Thompson, spoke powerfully about the inspiration that it is to many young women and girls, the transformative impacts that it has on their health and so much more. I am pleased that we have come such a long way from the days of old, when women were banned from playing professional football—a ban that was lifted only in 1971, but the effect of which can still be seen and has reverberated through the development of the women’s game for generations.

The FA took on the administration of women’s football only 30 years ago, in 1994, and the Women’s Super League became a fully professional league only in 2018. But, as noble Lords have pointed out, recent years have seen some striking, powerful and inspirational examples of the growth in the women’s game and, hearteningly, in the interest and appreciation that it is getting right across society. Correspondingly, there has been an enormous increase in the attention that it has garnered, with 77,000 fans attending the women’s FA Cup final last year. I know that all noble Lords fondly remember the astounding victory achieved by the Lionesses in the 2022 European Championship.

However, there is a concern, as has been expressed in this debate, that regulating women’s football now might not be the right moment in the development of the women’s game and women’s clubs. The Raising the Bar report, led by Karen Carney, stated:

“Given its stage of development, continued growth of matchday, broadcast and sponsorship revenue—with a view for the women’s game to become independently sustainable—is the right way to incentivise continued long term investment by clubs”.


Women’s football is obviously, and regrettably, not at the same stage of development as the men’s game—the men’s game had such a significant head start in terms of the professional apparatus around it—and the relative losses incurred by clubs are not in the same ballpark. Thus issues with financial stability are not comparable. There is recognition of that, although there was some surprise and, at Second Reading, a number of noble Lords from across the House rightly mentioned the women’s game as an area for us to be mindful of, so it was helpful to have had this debate.

Another issue is the level of investment that women’s football requires. As my noble friend Lady Brady pointed out, for women’s teams to come closer to the men’s game, significant financial investment will be needed. We are therefore right to question whether that is best served by and encouraged through this regulatory regime. However, I note the paradoxes that my noble friend highlighted in making that point and applying it to the women’s game, while conceding the argument in relation to the men’s game. I therefore understand why, at present, women’s football might not be included in the scope of this new regulatory regime.

However, it is useful to have had this debate and it would be useful to understand the Government’s intent here. Perhaps the Minister can explain the means by which the women’s game might be brought closer to the men’s game and how, if that happens and it falls into some of the same mistakes that we have seen in the men’s game, the women’s game might be captured by this regulatory regime. On the flipside, if the men’s regime learns from the women’s game and is able to regulate itself better, would that mean that there will be a lightening of the regulatory burden or are we past the point of no return for the men’s game? It would be interesting to hear that.

Like my noble friend Lord Moynihan, I slightly regret the wording of giving the women’s game a “chance” to regulate itself, but I am sure from looking at the Government’s accompanying notes that it is not meant pejoratively.

Amendment 72 from the noble Baroness, Lady Taylor of Bolton, sits slightly uneasily with the others because it is not just about the women’s game, but she explained why she has tabled that amendment and why she hopes to hear a bit from her noble friend the Minister. What she is seeking here is a welcome addition; it is only right that the regulator should be required to give assistance to clubs that are seeking licences. One of the themes that has been drawn out by many noble Lords in our scrutiny so far is the issue of how clubs will be able to adjust to these new licensing requirements. If the regulator does not implement this scheme in the correct manner, clubs will suffer, so it is only right that it should provide assistance to clubs to allow them effectively and efficiently to understand the new requirements that the Bill and its regulatory regime bring about. I will listen with interest to the Minister’s response to her noble friend on that and the other amendments in this group.

[Baroness Twycross (Lab)]

I thank my noble friends Lord Mann and Lady Taylor of Bolton, the noble Lord, Lord Addington, and the noble Baroness, Lady Grey-Thompson, for tabling these amendments, including on the important issue of the women’s game.

I reassure noble Lords that we are completely aligned on our commitment to women’s football. As I have said previously in your Lordships’ House, I was not allowed to play football when I was at school. I could not be more delighted that my nieces can not only play football but take for granted that they can, and that they are encouraged to do so. I am as excited at the growth in women’s football as is the noble Baroness, Lady Grey-Thompson. I asked a number of questions similar to those that noble Lords asked, so I hope that the answers I have had, which form a large part of my speaking notes tonight, will provide them the reassurance that I was provided when I asked those questions in preparation for your Lordships’ Committee.

At present, the regulator will not cover women’s football. In answer to the question from the noble Lord, Lord Moynihan, the regulator will not be concerned with women’s teams’ accounts even where they are affiliated to men’s clubs. However, it is empowered to obtain and consider information from a club’s wider corporate group. I reassure the noble Lord that clubs should not be able to circumvent requirements through creative accounting in the manner that the noble Lord described as potentially being an issue.

The regulator will be concerned only with the sustainability of the clubs which will be within the scope of its regime. Women’s football is in such an exciting place and we really do hope that it will be able to grow and succeed in a sustainable way. Indeed, the wider football ecosystem already provides financial support to the women’s game—a point made eloquently by the noble Baroness, Lady Brady.

The FA has a 2024-28 women’s and girls’ football strategy, which states that by 2028 it will

“secure significant additional funding and investment to support women’s and girls’ grassroots football and pyramid”,

among other things. In addition, as the noble Baroness, Lady Brady, said, the Premier League has provided a £20 million interest-free loan to the Women’s Professional Leagues Limited to help build strong foundations for the women’s game.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Wednesday 4th December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, at the beginning, I said I would speak to my Amendments 47 and 49 in my winding-up speech, but I said what I wanted to say about them then, so I shall not elaborate on them now. I am grateful to my noble friends Lord Hayward and Lord Jackson of Peterborough in particular for their support, and obviously to my noble friend Lord Markham, who signed the amendments.

To pick up what my noble friend Lord Hayward said, this is not intended to be perfect wording—this is a probing amendment. He is absolutely right to refer to adding timescales as an important matter of consideration. My noble friend Lord Jackson gave another argument in our useful discussion about the dangers of having somebody with a current live media interest serving in different capacities in these roles. If they are privy to sensitive information about the leagues and clubs, which are multi-million pound businesses in many cases, a careless word or an evasive answer in an interview or on a TV show panel could give the game away—all too literally.

I simply reiterate the questions that I put to the Minister in my opening speech: whether she sees a role for a cap on salaries at all, and whether the Government intend to publish their expectations for remuneration, even if they do not set out a figure. We would be grateful to hear an explanation of the reason for the change between the last Bill and this one, on the removal of the upper limit.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson of Whitley Bay, for tabling these amendments on the expert panel. The regulator’s independent expert panel will be responsible for making various important decisions across the regulator’s regime when and where it is appropriate. It is important that the panel has a range of expertise and experience to reflect this. The number of members of the expert panel is to be determined by the chief executive officer in response to the operational need. The Government do not want to restrain the effectiveness of the expert panel by introducing an arbitrary cap on the maximum number of its members. In our view, the regulator needs the flexibility to react in the event of high workload for the panel. The regulator would still need to deliver value for money, and has a regulatory principle encouraging this, so we do not believe that the CEO would appoint and maintain an unnecessarily large panel.

The Government acknowledge the intent behind Amendment 45 and other similar amendments to fortify the provisions in the Bill for dealing with conflicts of interest. It is essential that the regulator can deliver its regime free from undue influence and vested interests. I would like to reassure noble Lords that the Bill, supported by public law principles and non-legislative measures already in place, already sufficiently makes certain that the regulator will be free from conflicts of interest. For example, the Bill already places an onus on the chief executive officer to check for conflicts of interest at the point of making an appointment to the expert panel, and on an ongoing basis from time to time. In addition, the Bill sets out that the chief executive officer must ensure that the expert panel has the relevant range of skills, knowledge and experience.

It is possible that this amendment would limit the ability of the chief executive officer to do this, as it would restrict the pool of potential members of the expert panel. This, in turn, could hinder the IFR’s ability to fulfil its objectives. All in all, we are confident that these are comprehensive safeguards to examine and manage conflicts of interest appropriately. As noble Lords discussed earlier in relation to the composition of the board, we do not think it is appropriate to arbitrarily rule out specific sectors or sector interests.

I thank the noble Lord, Lord Parkinson of Whitley Bay, for Amendment 47. The Government very much appreciate the importance of ensuring that the regulator offers value for money. The regulator will be required to lay its annual accounts before Parliament and the Comptroller and Auditor-General for scrutiny. The regulator will also be subject to pay remit guidance in the same way as central government departments ensure that pay rises are justifiable. This will ensure value for money to taxpayers and operational flexibility for the regulator. Having a maximum salary in legislation would leave the regulator potentially unable to adapt to inflation and market changes. This could leave it without the expertise necessary to make critical decisions that allow the regulator to effectively deliver its remit.

Finally, I thank the noble Lord, Lord Parkinson of Whitley Bay, for tabling Amendment 49 on the transparency and accountability of the regulator. The Government very much agree that it is vital that the regulator is transparent and able to be held accountable by Parliament and others. Therefore, there are already a number of provisions in the Bill that ensure this. The exercise of the regulator’s functions will be reviewed in the regulator’s annual report. The Secretary of State and Parliament will be able to scrutinise these reports, which will be laid before Parliament. On the expert panel, the legislation already sets out a number of requirements to publish decisions and the reasons for them.

On this point, it is important for noble Lords to focus on the fact that transparency in decision-making is hugely important, but it is also really important that individual panel members can act without fear or favour, and that ultimately the regulator as a whole stands behind the decisions it makes. In my view and the view of the Government, it will also be necessary, in some instances, for details to remain private for commercial, personal or other sensitive reasons. For the reasons I have set out, I ask the noble Lord to withdraw his amendment.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the Minister for her responses to the points raised here. I am a little perplexed by the answer she gave on operational need, and her dismissing the argument for having an upper limit to the panel. It is not a party-political point. I said earlier that I was perhaps most perplexed by this change from the previous Bill to the current iteration. This is not a partisan point; there must have been some further thinking by the Bill team that worked on both versions, but I am confused as to what operational needs might mean that a panel of 20 could not do it. I will take that away and reflect on it and, if she has anything further to say, I am sure that in one of the meetings we have or in a future letter she can set it out.

On the salary point, I take what the Minister says about not carving it in stone and being limited to inflation, but there are other ways around it, such as pegging it to an equivalent salary in an equivalent profession. There might be ways around doing it so that there is flexibility for salaries to increase as inflation demands without them spiralling in a way that could undermine the work of the panel. In dismissing all these amendments as a group, we could end up in a situation with a potentially infinite number of panel members being paid a potentially infinite sum of money, so we are keen to probe where the limits of good sense are. We might come back to this issue with a bit of further thought, but in the meantime I am grateful and I beg leave to withdraw my amendment.

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[Lord Parkinson of Whitley Bay (Con)]

I am happy to use the time before the Committee to return to this issue but, as my noble friends behind me have said repeatedly, and as I have agreed to each time they have, I know that they would have been raising these points with me had I been at the Dispatch Box opposite. I know that because they were already raising them with me when I had the privilege of being the Minister, and I would be in the position of seeking to persuade them of the merits of the Bill. But I have also been clear, from Second Reading and all the way through, that we want to see this regulator established. We want to see it doing its work and doing so effectively, but we also see before us a Bill that is different, because of the election that was called and the result that happened.

We are interrogating particularly closely the changes that the Government have made to the Bill, of which there are many, and we have more concerns on these Benches, from my colleagues behind me, than we did before the election about the way we do it. As I have said before, the result of the election also puts us in a position on this side of the House to fulfil the duty that the noble Lord, Lord Kennedy, and the noble Baronesses, Lady Twycross and Lady Blake, dutifully fulfilled before the election: of making sure that government legislation is properly scrutinised. I make no apology for the fact that—

[Baroness Twycross (Lab)]

I have never filibustered a Bill to which my party had committed in a manifesto and to which all parties had committed. While the noble Lord is correct that I would scrutinise legislation when I was sitting on those Benches, I have never sought to filibuster a Bill to which my party had committed and which my party had laid before Parliament, intending to filibuster it to the point of getting us stuck in treacle.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I much regret the tone that the noble Baroness has adopted and what she says. That is not what we are doing. I sat here and bit my tongue, like the noble Lord, Lord Watson of Invergowrie, when I saw the Government Chief Whip asking one of his Back-Benchers not to move an amendment in order to try to proceed.

One of the great strengths of this House is the way in which we go through Bills in detail. We unearth issues, as we did in the debate on the group that we started today’s debate in Committee with. Neither I, as the prospective Minister in this House for the Bill in the last Parliament, nor the Minister opposite me was aware of the issues about hybridity until we got into the weeds of the Bill as we have in this Committee. That is the strength of the work of this House. I do not call that filibustering; I call it legislative scrutiny and, as we look at the workings of this House and the way it does that, we should do that with great pride.

I do not want to be distracted from the matter at hand by points that have been raised opposite. I want to address the amendments in this group so that we can carry out that duty. I associate myself with the amendments that my noble friends have tabled. I was speaking about my noble friend Lord Markham’s Amendment 171, and I agree with it.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Wednesday 4th December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to my noble friend for providing that information to the Committee. As I am not the world’s greatest aficionado of football, I will leave it to others judge whether that is a representative spread of the beautiful game, but I am interested to hear from the Minister the rationale by which those clubs were selected. I would like to know whether she was present at the half-hour meeting with those clubs and, if she was not, how much time she has given to engaging with clubs before bringing this legislation before your Lordships’ House and asking us to pass it.

As my noble friend Lord Markham set out, the changes the Government have made to the Bill since the last Parliament—on backstops and parachute payments—make this a substantively different Bill. I disagree with the noble Baroness, Lady Taylor of Bolton: this is not a virtually identical Bill; there are some substantial differences in policy terms, to do with parachute payments and so on. I think she would agree that those affect certain leagues and clubs more than others, and engage the question of hybridity and to what extent this Bill is targeting certain groups differently from others.

As with the amendments of the noble Lord, Lord Bassam, and the noble Baroness, my Amendment 19 was a probing one to see whether we could provide clarity in the Bill for those whom it will regulate, so they know from the outset what they must do and that they must comply with it. Like the noble Baroness, the first I knew was when we received the advice from the Clerk of Legislation explaining that this would make the Bill a hybrid one.

It is worth saying that I agree with the noble Lord, Lord Goddard of Stockport, that the previous Bill, when it was in Committee in another place, was not a hybrid Bill and it was right to conclude that. The question is, if we give that explicit information to the English Football League, the Premier League and the National League, so they know that they are going to be covered by this law—which the Government, in their Explanatory Notes, say they will: something they are happy to say outside the House but are not happy to say in the Bill, because that would afford them the right to come and speak directly to Parliament—then it is a question well worth pausing on, and I make no apology for returning to it today.

I am proud of the way your Lordships’ House scrutinises legislation; we go through things sometimes slowly, more slowly than Governments would wish— I have stood on the other side of these Dispatch Boxes and share the pain the Government Chief Whip and the noble Baroness are feeling today. This is a shining example of the importance of your Lordships’ House and the excellent advice we receive from its clerks. Thanks to that advice, two successive Lords’ Ministers for this Bill have been alerted to the fact that it could become a hybrid Bill if it is said in it what it is trying to do. That is an important point to have returned to in Committee, and I would like to understand from the Minister why, when we pass this law, we should not tell the people it is going to affect that it is going to affect them.

[Baroness Twycross (Lab)]

My Lords, I welcome the opportunity to respond to the debate. I have already outlined the Government’s position on an issue that the Committee clearly cares about. I can confirm to the noble Lord opposite that I am clear that this position is correct and, if the noble Lord is concerned that I am upset, then I am slightly surprised. I am more concerned that the noble Lord thinks we should still be confused about matters on which I have written an extensive letter to noble Lords earlier today. The House debated Amendment 19 at length on Monday evening and asked me to write on the points raised. I have done so, and a copy of the letter has been placed in the House Library. I do not really want to repeat my explanation of when a Minister might have to nod; however, I will do so if that is raised again.

I hope we can work through any residual concerns swiftly so that your Lordships’ House might be able to lend its scrutiny, which I agree is important, to the other very important parts of the Bill. I understand the noble Lord’s desire to have in the Bill upfront clarity as to which competitions will initially be in scope of the regulator’s regime. However, as I explained on Monday night, and in my letter, there is a sound policy rationale for the approach taken in Clause 2.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

Does the Minister recognise that my Amendment 19 seeks to allow that to happen? In its second part, it keeps the provision for the Secretary of State to make, by regulation, amendments if the name changes. I take on board the point she made on Monday and that she repeated in her letter about the policy intent here, but my amendment, if she accepted it, would allow that to continue to happen. It would also give the clarity from the outset to the leagues that are going to be regulated.

[Baroness Twycross (Lab)]

As I previously explained, I do not think that the leagues that are likely to be regulated by this legislation in the first instance are in any doubt, but I will answer the noble Lord’s point about why we are not going to put the top five leagues in the Bill and take a power to amend it. I believe I have set out very clear reasons for the approach taken on defining the scope of the regime. The Bill delivers the effect intended, closing any loopholes that would allow avoidance of the regime, while allowing for agility in responding to any potential changes in the structure of the football pyramid. This is a clear, simple procedure that can be consistently applied to the competitions initially designated as being in scope, as it can to any future competitions.

We have heard from numerous noble Lords opposite about their concerns over the number of delegated powers in the Bill, and I hear those. I have set out why specifying the leagues in scope in the Bill is a potentially flawed approach and open to avoidance. At best, this approach leads to superfluous or unnecessary provisions in drafting. At worst, it could undermine the entire regulatory regime. That is why the approach in the Bill that the Government have taken, and that the previous Government took, is the right one. For that reason, I am unable to accept the noble Lord’s amendment and hope he withdraws it.

[Lord Parkinson of Whitley Bay (Con)]

I am sorry to hear that from the Minister; it does not give us much more than we had in the debate on Monday. I thank her for restating it, but I do not think it has engaged with the point that my amendment seeks to provide, which is allowing that flexibility to answer all the policy questions that she has set out, but also giving the clarity in law to the leagues that will be regulated by the Bill. As far I can see, the only material difference between accepting my Amendment 19 and proceeding in the way she wants to is that it would allow those leagues to petition Parliament and make their voices heard more clearly. That would be a good way of hearing from those who will be affected by this law.

I was struck by the sage advice from the noble Lord, Lord Goddard, who is acting as referee on this matter. This is something we will have to return to, and I am grateful to the clerks who alerted me to it. We will have to think about the question of hybridity and the right of football clubs and leagues to make their views known on this legislation, as the Minister and I have both just come to understand. The Committee has, through the course of this and Monday night’s debate, been able to begin considering it, and we should continue to consider it between—

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[Lord Parkinson of Whitley Bay (Con)]

I thank noble Lords for their support for this group and apologise to the noble Lord, Lord Watson of Invergowrie. “Littered” was probably not a well-chosen word. I meant it in the sense of an adorable litter of puppies that enhance the joy of all of us. I am grateful too to my noble friend for giving another example in the shape of TNS. They seem to be the football league equivalent of him—both a Shropshire lad and a man of Harlech. I am grateful to the noble Lord, Lord Beith, for setting out his Amendment 23 and hope that the Minister can allay the concerns that have been raised on behalf of all these clubs and others in similar situations.

[Baroness Twycross (Lab)]

I thank the noble Lords, Lord Parkinson of Whitley Bay and Lord Beith, for their amendments to Clause 2 and the opportunity they present for me to clarify this matter.

Amendments 20 and 22 in the name of the noble Lord, Lord Parkinson, would allow the Secretary of State to include in the regulator’s scope competitions that are not exclusively or predominantly made up of English teams. This would mean the loss of an important protection that, as currently drafted, ensures Welsh football competitions could never be brought into scope. The noble Lord will be aware that sport is a devolved matter for Senedd Cymru, the Scottish Parliament and the Northern Ireland Assembly. Therefore, if intervention of this nature was deemed necessary within Welsh, Scottish or Northern Irish football, it would be for their respective legislatures to take forward.

While I am on the subject of Welsh football, I take this opportunity to congratulate the Welsh national team, who qualified for the Women’s Euros last night. It is the first time in their history they have qualified for a major tournament. This is a fantastic achievement and one I am sure your Lordships will want to join me in celebrating.

[Baroness Twycross (Lab)]

On Amendment 23, I understand the aim of the noble Lord, Lord Beith, to ensure clubs are not inadvertently captured by the regulator’s regime or left out—for example, where they are based in England but compete in the Scottish league system. I reassure him that the Bill already sufficiently protects against this risk. Only clubs competing in competitions specified by the Secretary of State will be subject to regulation, and the Secretary of State can specify only English competitions. Therefore, clubs such as Berwick Rangers, which is part of the Scottish pyramid, cannot be subject to the scope of the regulator as long as they do not play in English competitions. Conversely, clubs playing in those specified English competitions, including Welsh clubs, will be regulated.

I am happy to meet noble Lords to discuss this further if that would be helpful but, for the reasons I have set out, I am unable to accept the noble Lords’ amendments. I hope that they will not press them.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the noble Baroness. As she could hear from the cheer, I think we all associate ourselves with the congratulations that she offered to the Welsh women’s team. It is marvellous news. I thank her for the reassurances. As the noble Lord, Lord Addington, said, these are some of the quirks of our history that we celebrate through football, which we play across these islands. I am grateful to the noble Baroness for the clarification she has set out and I beg leave to withdraw my amendment.

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[Lord Parkinson of Whitley Bay (Con)]

I think anyone in Committee anyone can move an amendment, so I am very happy to move Amendment 33. I am curious as to why the noble Baroness has not moved it and perhaps she can set out why, as it is a sensible one and I was intending to speak in support of it.

Amendments 32 and 33 sought to ensure that the chief executive of the new independent football regulator could be appointed by the whole board and not just by the chairman of the board. That would seem a sensible improvement in terms of collective decision-making and an additional safety valve to ensure that the appointment of the chief executive was not a politicised move. I know that a number of noble Lords have significant board experience and may have views on the merits of this.

I was also keen to come in because the amendment allows us to ask the Minister for an update on the appointments, because we are scrutinising this Bill not knowing who the chairman of the new regulator will be or the board. I understand that the deciding panel met to sift applications for the non-executive roles on Monday—I do not know whether she can confirm that—and that people who have applied have been asked to hold the 17, 19 and 20 December for interviews. Can she say now or in writing whether that is still the timetable on which the Government are operating? That would be helpful, because when we took the Online Safety Bill through, we knew who held the regulatory roles at Ofcom and could have some dialogue with them. Anything more that the Minister can say, now or in writing, about the timetable by which these important figures are appointed might aid the discussions that we are able to have in parallel to the scrutiny of the Bill about the people who will be taking forward these important roles.

I beg to move Amendment 33, so that the noble Baroness can have time to respond. I do not know whether the noble Baroness, Lady Taylor, wanted to say why she was no longer in favour.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson, for the opportunity to respond to the amendment. The Government recognise the intent behind it, which is to ensure that the decision on the appointment of the chief executive of the regulator has the appropriate input and scrutiny. I reassure my noble friends and others that the Bill already suitably achieves this.

As per paragraph 5 of Schedule 2, the chair must consult the other non-executive members of the board, as well as the Secretary of State, before appointing the chief executive. The chief executive will have the responsibility of appointing a portion of the board—namely, the executive members. For this reason, I am sure noble Lords can see that it would be circular and impractical for the entire board to collectively appoint the chief executive.

I am happy to discuss this at greater length but I hope this reassures the noble Lord. I would therefore be grateful if he could withdraw the amendment.

[Lord Parkinson of Whitley Bay (Con)]

Is the Minister able to say any more on the timing of appointments? If not, I would be very happy for her to write. The processes to appoint the chairman and the board members began before the election. As I understand it, that process has continued but the Government extended the window of applications for people applying to be the chairman. That closed. I believe the sift took place on Monday, and people are being asked to hold dates next week and beyond for interview. Is the intention to try to make an announcement while the Bill is before your Lordships? Might we know who the new chairman and board members are, or has the timeline slipped?

[Baroness Twycross (Lab)]

Whether we get the result while your Lordships are debating the Bill is a moot point, given the length of time we are taking to get through Committee. The noble Lord is correct, though: the timetable for the interviews is the same, and they are intended to take place on 17, 19 and 20 December.

[Lord Parkinson of Whitley Bay (Con)]

In which case, I beg leave to withdraw the amendment.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, again, there is good sense behind the amendments that the noble Lord and the noble Baroness have tabled in this group. They address a critical issue about ensuring transparency and fairness in the governance of our beloved game.

Amendment 34 seeks to introduce an objective test to determine whether a proposed director of the new independent football regulator has a conflict of interest. Under the previous framework, the decision was left in the hands of the appointing party, leaving the process vulnerable to subjective interpretations and, potentially, political interference or favouritism, which I am sure we all want to strive to avoid. By introducing an objective test, the amendment would remove that ambiguity and ensure that potential directors are rigorously vetted before they take office. That is an important suggestion that would uphold the values of fairness and accountability in football.

Amendment 35 would take that further by requiring all directors of the independent football regulator to not only undergo this rigorous vetting but publicly declare any potential conflicts of interest. This would be a vital step in increasing transparency and holding accountable those who wield the new powers the Bill brings about. We on these Benches all agree that the integrity of the sport must be upheld through adherence to ethical standards and think that the amendments are an important step in that direction. The chief executive officer of the independent football regulator will be given the task of maintaining a register of these declared interests, ensuring full transparency and accountability in football governance.

Similarly, Amendments 43 and 44 would extend this principle to members of the expert panel, ensuring that they too declare their interests. Again, the independent football regulator’s chief executive will be responsible for maintaining a register of interest for the expert panel, providing an additional layer of transparency. By implementing these measures, we would reinforce the importance of ethical conduct and accountability across the regulator’s board and its expert panel, both of which will be key to the fair and transparent governance of football under the new regulatory regime.

Finally, Amendment 331, which would expand the nature and definition of a conflict to include a situation where the perception of a conflict may arise, also has some merit. Perception is often just as important as reality in maintaining trust. By introducing non-exhaustive examples, the amendment would ensure that we address conflicts of interest in a comprehensive and forward-thinking manner.

I am grateful to the noble Baroness and the noble Lord for tabling the amendments, which represent a robust and progressive framework for managing conflicts of interest in the governance of the sport. They would introduce clear, objective tests, require declarations of interest and ensure transparency through the form of the public registers, all of which are important. I look forward to hearing what the Minister has to say.

[Baroness Twycross (Lab)]

I thank my noble friends Lord Bassam of Brighton and Lady Taylor of Bolton for tabling these amendments. The Government acknowledge the intent behind them, which is to fortify the Bill’s provisions for dealing with conflicts of interest. It is essential that the regulator can deliver its regime, free from undue influence and vested interests.

I reassure my noble friends that the Bill already sufficiently makes certain that the regulator will be free from conflicts of interest. This is supported by public law principles and non-legislative measures that are already in place. As with all public bodies, members of the regulator’s board will be subject to the Cabinet Office’s code of conduct for board members of public bodies, which sets out clear requirements regarding the appropriate disclosure and management of conflicts of interest. It includes a responsibility on board members to openly and honestly declare any interests that could give rise to actual or perceived conflicts. Any breach of these requirements would be a breach of the member’s terms of appointment.

The Bill also places an additional onus on the appointer to check for conflicts that have not otherwise been declared, both at the point of making the appointment and on an ongoing basis from time to time. In addition, paragraph 16 of Schedule 2 requires members of the board to declare their interests in any matters which fall for consideration by the board, and for this declaration to be recorded.

On Amendment 331 in the name of my noble friend Lord Bassam, the Government are confident that the existing definition of conflict of interest is appropriate and will capture the correct issues. The expansion of the definition proposed by my noble friend would also see perceived conflicts explicitly forbidden. We believe this is disproportionate and goes beyond the normal interpretation of conflict of interest. For example, almost all noble Lords here support a football club. In an extreme interpretation, that alone could be a perceived conflict. All in all, we are confident that the Bill, supplemented by public law principles and non-legislative measures already in place, provides comprehensive safeguards to identify and manage conflicts of interest appropriately. For these reasons, I am unable to accept my noble friends’ amendments and ask my noble friend to withdraw her amendment.

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[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson, for tabling these amendments and thank all noble Lords who have contributed to what I thought was a very thoughtful discussion. As with the previous discussion on this matter, the Government would like to reassure noble Lords that the Bill already sufficiently makes certain that the regulator will be free from conflicts of interest, irrespective of sector. This is supported by public law principles and non-legislative measures already in place. As I said previously, the Bill requires members of the board to declare their interests, and this declaration is to be recorded.

Taking Amendment 36 first, we are confident that there are comprehensive safeguards to root out and manage conflicts of interest appropriately. For example, a board member would not be permitted to take part in any discussion relating to a matter if they had a significant direct or indirect interest in it. Failure to declare an interest would also be a breach of the board member’s terms of appointment. In response to noble Lords who asked me for a definitive view, my view is that beyond these comprehensive existing provisions we do not think it is necessary or appropriate arbitrarily to rule out specific sectors or sector interests such as television, broadcast or media.

On Amendment 40, we acknowledge the importance of the regulator offering value for money. It will be required to lay its annual accounts before Parliament and the Comptroller and Auditor-General for scrutiny. The regulator will also be subject to pay remit guidance in the same way central government departments are to ensure pay rises are justifiable. This will ensure value for money for taxpayers. However, having a maximum salary in legislation risks the regulator being unable to attract the right talent, potentially leaving it without the skills and expertise it needs to deliver its objectives—a point the noble Lord, Lord Londesborough, made very succinctly. We agree with the point around the need to control costs. A fixed salary in legislation is also inflexible to inflation and market changes, and it could become rapidly outdated, as the noble Lord, Lord Hayward, pointed out. For these reasons, I am unable to accept the noble Lord’s amendments and ask that he withdraw or not press them.

[Lord Parkinson of Whitley Bay (Con)]

I am very grateful to the noble Baroness for that response and to noble Lords who took part in the debate. This is a strength of the Committee stage—I can see the furrowed brows with the opinions being weighed up and I am grateful to noble Lords who have engaged with the probing amendment I tabled in this way. I hope, if nothing else, it has been useful to the Secretary of State who, as we know from the Minister’s responses in the previous group, is soon to make her decision about who ought to chair this new regulator and who should be on the board. I hope that the points that noble Lords across the Committee have made will be taken back and inform her deliberations.

I take on board what the noble Baroness said and indeed the point that the noble Lord, Lord Londesborough, raised about the need to make sure we are paying enough to attract the calibre of person that is going to rise to the task ahead of them. On pay and salary, I am grateful as well to the Minister for what she said and was struck particularly by what she said about pay restraint. I know from my ministerial experience that, when public bodies want to push for pay rises above what would be normal in the private sector or across the economy more generally, then that comes to Ministers. If there is that sort of oversight and check and balance in the system to ensure that the regulator’s salary costs are not spiralling as quickly as we feared, then that would be a good thing. With gratitude to the Minister and to all who took part, I beg leave to withdraw my amendment.

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[Lord Parkinson of Whitley Bay (Con)]

I will briefly encapsulate some of what we have heard and respond to the point of the noble Baroness, Lady Fox of Buckley. She is right: it was a chastening experience to stand at the Dispatch Box as a Minister and repeatedly have to say that something was a matter for the independent Ofcom, the independent Arts Council, the independent board of the BBC, or the Betting and Gaming Council. There are good reasons why many of those organisations are independent of government, and that independence should be carefully guarded. However, given the additional role that Ministers in this House have, and in providing parliamentary scrutiny, the distinction that the noble Baroness, Lady Taylor, makes between the Executive and the legislature comes to the heart of it.

I am grateful to my noble friends on these Benches for expressing some of the concerns that they would raise if they were on a parliamentary committee overseeing the work of this regulator. As the noble Baroness, Lady Fox, reminded us, the concerns could go in all directions, and that is the beauty and importance of parliamentary accountability. This is an important regulator doing hotly anticipated and important work, and I am grateful for the consensus, which my noble friend Lord Markham points out, on the need to find a way to make sure that it can continue to be accountable to both Houses of Parliament.

[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Parkinson of Whitley Bay, for tabling these amendments, which relate to the transparency and accountability of the regulator. The discussion was interesting, and I found my noble friend Lady Taylor’s expertise on this matter particularly helpful to our debate. I look forward to discussing this further with her.

The noble Lord, Lord Goddard of Stockport, raised some interesting points. I stress that the Government recognise that it is vital that the regulator is transparent and able to be held accountable by Parliament and others. A number of provisions in the Bill already ensure this. The exercise of the regulator’s functions will be reviewed in the regulator’s annual report. The Secretary of State and Parliament will be able to scrutinise these reports, which will be laid before Parliament. The regulator’s chair and non-executive directors will be required to go through the public appointments process, as is appropriate given the weight of the role and responsibility for other appointments to the regulator. The chair of the regulator will already be subject to pre-appointment scrutiny with the relevant parliamentary Select Committee. However, as far as I am aware, there is no precedent for board members to be expected to go through such an extensive process as the chair is expected to, and neither has the relevant parliamentary Select Committee sought this. We therefore do not think that such a requirement is proportionate or necessary.

The regulator will be expected to work alongside the parliamentary process, which already allows committees to compel witnesses to attend. If a committee wished to invite a relevant member or the chief executive to appear before it, the Government would certainly expect them to fulfil this. These amendments would set an unprecedented and rigid approach to committee invitations that we do not feel is appropriate to place on the regulator. It would also not be appropriate for the Government to dictate to parliamentary committees who should appear before them—that is surely a matter for committee members themselves to determine.

Almost all of Amendment 123 dictates various actions in relation to parliamentary committees: who should appear before them, what they should scrutinise and when they should do so. I am sure the noble Lord agrees that parliamentary committees are quite able to take these decisions themselves and do not need the help of any legislation to do so. On the expert panel, the legislation already sets out a number of requirements to publish decisions and reasons for them. For these reasons, I am unable to accept the noble Lord’s amendments and ask that he withdraws Amendment 37.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the Minister for that response. I recognise many of the lines she uttered; I have uttered those and similar on previous Bills. For me, the most important contribution was that of the noble Baroness, Lady Taylor, who has given greater thought to this over a long time.

The Minister is right: it is not for the Government to tell parliamentary committees whom to call as a witness and how to do it. But there is a growing concern that there are so many ways in which the Government have devolved power to powerful regulators that can accrue—in the way that the Bill achieves—new powers or go in new directions through secondary legislation that does not get the sort of scrutiny that we are giving the Bill at the moment. Perhaps some broader mechanism needs to be found for looking at the work of not just this regulator but regulators in general. As I say, that was a feeling that gnawed at me when I stood at the Dispatch Box opposite. We will probably not crack the answer as we look forward to a well-earned dinner break, so, with gratitude to the Minister, I beg leave to withdraw the amendment.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Monday 2nd December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I thank the noble Lord. My noble friend Lord Hayward said that he did not much like it either, but it is helpful that my amendment has been grouped with the other amendments, which are seeking to give a bit more precision than the two short lines that are in the Bill. As I said in moving my amendment, my contention is that they do not go far enough to define what “sustainability” means in practice, which will be important for the regulator looking at it.

I am grateful to my noble friends, particularly my noble friend Lord Markham, whose Amendment 13 proposes a few tangible benchmarks through which sustainability can be measured. It suggests inserting criteria, including increasing TV viewership, increasing match attendance, improving international sporting competitiveness and increasing the overall income generated. They are all very tangible and specific. I hope that the noble Lord, Lord Watson, will prefer them and I look forward to hearing what the Minister has to say about them when she responds.

Criteria such as those would provide a far more accurate and reliable understanding of the sustainability of English football. As my noble friend Lord Markham said, we all want to make sure that we are helping to deliver that with this Bill and to give the regulator the clarity that it needs to uphold it. The Premier League’s television exports alone were worth £1.4 billion in 2019-20. If the Government are serious about growth and supporting the success of Great British success stories, the regulator must ensure that that growth trajectory goes only upwards. By basing the standards of sustainability on objective metrics, such as those that my noble friends Lord Markham and Lord Maude have tried to set out, football would surely benefit, and the regulator would have the clearer frames of reference that I think we are looking for.

As my noble friend Lord Hayward said, there is competition from a growing number of countries that are snapping at our heels. As the noble Lord, Lord Addington, reminded us, there is no divine right for football to continue to exist in the way that it does in this country. My noble friend Lord Hayward pointed out some of the sporting fixtures that have happened this weekend. I enjoyed the Qatar Grand Prix, although I thought that the 10-second penalty for Lando Norris was rather disproportionate, especially since no safety car and no virtual safety car were deployed. I mention that not to take us on to another sport but to point out the difficulties that happen when a regulator—in this case, the Fédération Internationale de l’Automobile—makes curious or contentious decisions.

Through the amendments in this group, we are seeking to give a clarity of purpose to the regulator, so that it can focus its important work on delivering the sustainability of English football in a way that matches what the Government have set out in their Explanatory Notes. For all the differences that have been expressed, I think that we are all united on that. But it is important that we give this extra precision and clarity, and I look forward to hearing what the Minister has to say.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

I thank the noble Lords, Lord Parkinson of Whitley Bay, Lord Maude of Horsham and Lord Markham, for tabling their amendments and for the thorough discussion we have had. I look forward to the ongoing discussion on many of the points raised as we debate the Bill.

We do not think that the Bill, which is largely the same as the previous Government’s version, is flawed, as the noble Lord, Lord Jackson of Peterborough, suggested; nor do we think it leaves a lot to be desired, as the noble Lord, Lord Maude, suggested. We also do not think that it is an overreaction of the nature that the noble Lord, Lord Hayward, suggested. Indeed, we think it is what fans are looking for and what will bring sustainability to the game. I will get on to the definition of “sustainability” shortly.

Amendment 7, tabled by the noble Lord, Lord Parkinson of Whitley Bay, adds further detail to the definition of the sustainability of English football. I am pleased that he noted the definition on page 2, which does indeed define sustainability in the Bill. All the aims of the amendments are laudable. However, I assure the noble Lords concerned that the detail that has been added, in particular by Amendment 7, is largely implicit in the current definition of the sustainability of English football. So, while the noble Lord might suggest that the definition is, in his words, short and unsubstantial, I would argue that it is sufficient. The wording is that which was adopted in the noble Lord’s Government’s iteration of the Bill.

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[Baroness Twycross (Lab)]

That is a matter that I am sure we will discuss at greater length when we come to a longer discussion on secondary legislation, but I am happy to talk to the noble Lord outside this Chamber at further length.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the Minister for her reply. There were two things that I scribbled down as she said them. The first was that the definition—the extra detail of sustainability—is implicit in the Bill. That really gets to the nub of the debate we have just had. We think leaving it implicit for the regulator causes some problems. If the wording—albeit not to the preference of the noble Lord, Lord Watson of Invergowrie—is something that the Government are happy to set out in the Explanatory Notes, why can we not make it a bit more explicit in the Bill to give the regulator more clarity? That is what the amendments in this group have sought to do, and the Bill would benefit from being made more explicit rather than left in the implicit way that the Minister set out.

The Minister also said that the regulator is being set up to deal with football’s sustainability problem, and that football has no growth problem, at least at present. Our concern is that seeking to address the former problem in the way the regulator goes about its work, particularly if it is left to do it implicitly, risks football’s continuing success in the growth category and in other ways. That is why we have given this such detailed scrutiny. However, I am grateful to her for her response, and I beg leave to withdraw my Amendment 7.

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[Lord Parkinson of Whitley Bay (Con)]

I will not prolong the discussion any further; it is important that we hear from the Minister instead. As we do so, I hope that we hear from her on the tension between the need for flexibility, which I understand, and the need for clarity so that the duties on the clubs, which are successful businesses, and on the regulator, which is a powerful new body, are also specified. We need that so that everybody, when they follow the Bill when it becomes an Act of Parliament, is clear on what they have to do, whether they are speaking to the fan group of the noble Lord, Lord Mann, or another about each of those duties.

[Baroness Twycross (Lab)]

I thank the noble Lords, Lord Parkinson of Whitley Bay, Lord Markham and Lord Addington, and my noble friend Lord Watson of Invergowrie for tabling these amendments and for the thorough discussion on this group. There is an amendment in a group specifically on clubs playing overseas, which I will come back to during a later stage in the Bill’s progress. I have been told by my noble friend the Chief Whip that I should not comment on gobstoppers, as tempting as it is to do so.

I am glad that we all agree on the importance of fans to the game. The Bill also recognises that importance. As noble Lords are aware, it is based on the fan-led review, so it should have fans at its heart. I suspect that we will never get full agreement on how we should define a fan or group of fans—we have seen that in the debate on this group. However, I welcome the point made by the noble Lord, Lord Birt, that—to paraphrase—there is quite a lot of agreement on this element, so noble Lords are at risk of debating something that, when it comes down to it, many of them will agree on.

The noble Lord, Lord Parkinson of Whitley Bay, tabled an amendment that would look to add further detail to the definition of the sustainability of English football. I reassure him that both prospective and current fans would be considered in the existing requirement. As he will be aware, this is in line with the Bill introduced by the previous Government in which he served. Football would not serve the interests of fans if the game were unattractive or unwelcoming to new fans. As the Explanatory Notes to this clause clarify, continuing to serve the interests of fans

“means meeting the needs of present fans without compromising the ability of future generations of fans to enjoy and benefit from the club”.

Amendment 9, in the name of the noble Lord, Lord Parkinson, looks to remove the specific reference to “local” communities from the definition of the sustainability of English football. One of the best things about football in this country is that it fosters community. I welcome the passionate defence of local fans made by the noble Lord, Lord Goddard of Stockport. This is something that noble Lords from across your Lordships’ House recognised and spoke passionately about at Second Reading, and we wish to protect it.

The local area surrounding clubs can often develop communities and economies dependent on the football club. It is important to recognise that not all communities are grounded in the local area. As noble Lords have mentioned, they can be online, far-reaching and even international. These communities are also important, as was highlighted by the noble Lords, Lord Goodman of Wycombe, Lord Maude of Horsham, Lord Hayward and Lord Moynihan of Chelsea.

The noble Baroness, Lady Brady, mentioned international flights. I understand that such is the Norwegian enthusiasm for football that weekend flights are scheduled to allow fans to travel to watch UK games. However, as communities become less rooted in the local area or directly related to the club itself, it would be harder for the regulator to control or even predict how its actions may influence their economic or social well-being. We do not want the regulator to be set up to fail because it cannot feasibly meet its statutory purpose. If the regulator were required to consider more detached and far-reaching communities, it might never be able to completely deliver a sustainable English football.

We should also remember that it is often the local communities that are most vulnerable and can suffer most directly from any crisis at a club. As my noble friend Lady Taylor of Bolton made clear, the locality matters. We have seen in places such as Bury and Macclesfield the hole that is left in the local community, including the economic impacts, social impacts and job losses. None the less, the regulator must of course consider the impact of its actions on the wider community of fans. That is why the Bill’s purpose, as drafted, includes English football serving the interests of fans, with no requirement that those fans are “local” to their club.

The noble Lord, Lord Parkinson of Whitley Bay, appeared to conflate how fans and communities are defined. I want to be very clear that, while Clause 1(3)(b) specifies “local communities”, Clause 1(3)(a) does not specify that it applies only to local fans. So, the noble Lord’s points on Manchester United fans in Weymouth would still be considered in this definition of “sustainability” as it pertains to fans.

On Amendment 17 in the name of the noble Lord, Lord Markham, I understand that its intention is to set in the Bill a definition of what makes someone a football fan. His amendment draws on the Explanatory Notes. I welcome the perspective of the noble Lord, Lord Finkelstein, as a member of the committee on the fan-led review. For a definition of a fan to be in primary legislation, there is a significant risk of unintended consequences that it will end up being either so loosely defined that it lacks precision or too narrow that important and passionate fans are excluded from engagement. I know that noble Lords from across the Committee would not wish to exclude any passionate fan from the engagement that the regulator intends clubs to carry out. This is because the make-up of a fan base will differ from club to club. It is this diversity that makes English football so special.

In our view, there is also likely to be the need for clubs to be able to consult different groups of fans on different issues. For example, on ticket prices, we would reasonably expect that clubs may wish to focus on consulting regular, match-going fans. However, on stadium relocations, we might expect them to consult a broader group of fans from across the community. From my engagement with Members from across your Lordships’ House, I know that there are many different views on the definition of a fan. Indeed, there are probably as many definitions as there are Members in this debate, if not many more. Therefore, although I understand the desire for more clarity, I am extremely reluctant for the Government to provide a specific definition that would be limiting.

The Government do not see themselves as the arbitrator of who counts as a football fan; instead, it is something that fans and clubs themselves will be in the best position to understand and discern. The regulator, once established, will be able to provide guidance for clubs on how to best consult fans, rather than be bound by an inflexible and potentially unhelpful definition. This will ensure that clubs have an appropriate framework in place that allows them to meet and consult fans regularly on key strategic matters and supporter interests, utilising pre-existing fan structures and other engagement mechanisms.

As Amendment 17A in the name of my noble friend Lord Watson of Invergowrie demonstrates, there are multiple ways in which others may define a “fan”, all of which would capture vastly different groups. At some clubs and on some issues, the definition as set out in the amendment may be sufficient, but for others there could be large numbers of dedicated fans, including the noble Baroness, Lady Jones of Moulsecoomb, who would not be captured if the club considered only season-ticket holders. I agree with the noble Baroness, Lady Brady, that this would be too narrow. For example, it would mean that those unable to attend matches as a season-ticket holder due to reasons of finance or health, or due just to their lack of luck in a ballot, would be excluded from the consultation. My noble friend Lord Mann noted the waiting list for season tickets. As a Labour Government who think that financial criteria should not exclude people of limited financial means, we feel strongly that the emotional commitment highlighted by the noble Lord, Lord Addington, should take precedence over any financial ones. This demonstrates the need for nuance and discretion in the definition, which clubs and the regulator are in the best position to arrive at.

On Amendment 26, the noble Lord, Lord Addington, is right that the regulator would have an important role in ensuring that clubs understand and meet the fan engagement requirements placed on them. The Government agree, and they expect that the regulator will need to produce guidance to provide more detail and information on who to engage with, and how, to meet these conditions. However, it is important to understand that, for the most part, individual clubs will be in the best position to understand the demographics of their fans, with significant variation between clubs. There is a risk that the amendment could inadvertently place a limit on fan engagement and limit clubs to meeting only those who are members of an official fan body. Many fans will not be part of a formally constituted body; that does not mean that they should not be represented. For example, if a club is seeking to move ground or make changes to home shirt colours, a wide range of fans should be consulted and not just a formally constituted body. The Government have designed the legislation to allow for a bespoke approach to fan engagement shaped by the regulator’s guidance, an approach that the previous Government also supported.

However, although many clubs will be best placed to discern who they should engage with, if it is felt that a club is misusing this to select only agreeable fans or to exclude another group, the regulator can and should intervene. As is made explicit in paragraph 272 of the Explanatory Notes, the regulator can take action in such instances and will be able to specify how any representative group of fans should be engaged or informed. As I said at the start of my response, I am delighted that there is so much support across your Lordships’ House for fans being at the heart of the Bill and the debate. It is a theme that we will no doubt return to on many occasions, and I look forward to future discussions. However, for the reasons outlined, I am unable to accept the amendments from my noble friend and the noble Lord and ask that they do not press them.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the noble Baroness for her response. In relation to my Amendment 8, I have been in her position of having to explain why, while agreeing with the spirit of an amendment, the Government are not minded to put it in a Bill. However, if she says that the Bill is about current and prospective fans, as my amendment seeks, why not say it in the Bill? I hope that between now and Report she might reflect a bit further on that.

Regarding my Amendment 9, the Minister said that I had conflated the issue with fans. After the slightly confusing debate that we had, it is not unreasonable that she thinks I might have done. Perhaps it was unhelpful to have grouped these amendments together and to have had one debate on them. However, I am clear that Clause 1(3)(b) relates to communities and not to fans. The question that I am asking is whether, as we work towards the sustainability of English football, we should limit our ambitions to the economic and social well-being of local communities that stand to benefit rather than our community more broadly? For the sake of clarity, I wanted to de-conflate those. I am not sure that we have quite cracked this matter but, for now, I beg leave to withdraw my amendment.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Monday 2nd December 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the noble Lord for his intervention and for mentioning that. The point remains that it would be beneficial for us to look at that report on the way in which the FCA is doing its work to see whether it is doing what Parliament asked it to do when it was set up and to see whether we agree with the points that the all-party group, of which he is a member, made in its recent report.

As a number of noble Lords from across the House have said in our debate on this group, the amendment simply requires the regulator to have regard to the risks inherent when regulating a large industry such as football. I am grateful to my noble friends Lord Moynihan and Lord Maude of Horsham for the benefit of their considerable expertise and to my noble friend Lord Hayward for going so forensically through the impact assessment published by the Minister’s department.

My noble friend Lord Jackson’s Amendment 16 represents another guardrail for the regulator to use to focus its attention when exercising its functions. It would complement some of the other amendments that I have tabled and which we have been looking at. Such simple insertions of text into the Bill may be criticised as unnecessary, but they are important. The language that we use when establishing in law new public bodies and new regulators is of supreme importance. It creates a starting point from which that body will grow or change and be investigated by all-party groups and Select Committees. What that starting point looks like and how it is clearly defined has the potential to shape its future trajectory. We are looking at a regulator we hope will do its work very successfully for generations to come. Surely, we want that trajectory to enable future growth and innovation—future visionaries—and to remain free from mission creep and expansion into areas which we do not want to see it moving in.

The proposed model of regulation in the Bill will require the frequent submission of reports and financial plans. These will, as per the licensing conditions and as per our debate on this group, all have to be approved before a regulated club is granted a licence and are a condition for it maintaining that licence. The monitoring and collection of that information will naturally require a large number of staff to help comply with the new regulation. Added to the costs of the levy, this could have damaging effects on regulated clubs—damaging effects, as my noble friend Lord Maude of Horsham and others powerfully set out, that would be felt most keenly by those at the lower end of the pyramid.

That is also particularly evident in the provisions in the Bill that require clubs which are no longer regulated, by virtue of their relegation, to continue to comply with the duties set out. Part 5, for instance, states that some of these duties will be applicable for up to 10 years after the club has been regulated. This ratchet effect means that clubs could still be required to submit a whole host of information to the regulator, even when they have diminished resources because they have dropped below the lower limit of the regulatory ambit envisaged by the Bill. I hope that we can all see the potential for harms here and the risks of those harms growing.

I am grateful to the noble Baroness, Lady Taylor of Bolton, for drawing the Committee’s attention to her Amendment 72. We should all take a careful look at it in light of the debate that we have had. We will touch on it when we come to that group later on, but I appreciate that it is an attempt to make that sort of regulatory burden easier on clubs. When we come to it, I will ask her more on how her amendment envisages the regulator potentially paying some money to clubs. I will be interested to hear her set that out, but that is for another group.

Football is not only an extremely popular pastime but a vital part of our economy, and the financial health of clubs has to be protected, as my noble friend Lord Jackson’s Amendment 16 seeks to do. By mandating a thorough assessment of the financial implications of the new regulator’s regulatory actions, his amendment would guarantee that clubs’ sustainability would never be overlooked in the pursuit of regulation or reform.

The requirement for regular reports to be submitted to the Secretary of State and laid before Parliament would add to the Bill’s parliamentary oversight, which it currently lacks. It would enhance the transparency of the new regime that we will be bringing in through this law and allow for prompt corrective action, if needed. That is an approach which aligns perfectly with Conservative values, but one which I hope would garner support from every corner of your Lordships’ House. As my noble friend Lady Brady has reminded us, the Prime Minister has recently spoken, to my mind encouragingly, about the risks of overregulation and the need for growth. I hope that these points will resonate with the Benches opposite and with the Minister too.

My noble friend’s amendment seeks to safeguard the future of football while maintaining accountability to Parliament. I know that he would have tabled an amendment such as this if we were still in the last Parliament. If I had found myself at the Dispatch Box opposite, I would have been responding to it. I must say that I would have looked very favourably on it. I think it seeks to strike the right balance between regulation and the economic vitality and viability of football clubs. I hope the Minister will look favourably on it as well.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

I thank the noble Lord, Lord Jackson of Peterborough, for tabling this amendment. I also particularly welcomed the personal account of the noble Lord, Lord Moynihan. I thank all those who contributed, including the noble Lord, Lord Maude of Horsham, who has considerable expertise in regulation. The description from the noble Lord, Lord Birt, of the benefits of regulation, including a strong board and what advantage that might bring, was particularly helpful.

In response to the noble Lord, Lord Goodman, we will cover the scope of specified competition in the next group, so your Lordships’ Committee will come to that shortly.

The amendment seeks to add an explicit requirement for the regulator to have “due regard” to the potential economic harms of overregulation and to report on this. It is an important point to be aired, and I welcome the opportunity to respond to the concerns the noble Lord has. I absolutely agree that overregulation is something to be avoided. It is why the regulator’s general duties and regulatory principles provide sufficient safeguards to prevent this.

The regulation ensures that the regime is proportionate. In particular, Clauses 7 and 8 emphasise the need for the regulator to act in a way that avoids, as far as reasonably possible, adverse effects on investment and competitiveness, and that it should act proportionately.

The noble Lord, Lord Jackson, asked about overregulation and was echoed by the noble Baroness, Lady Brady. The regulator’s general duties require it to have regard to how regulation might affect, among other things, financial investment in English football. Its regulatory principles clearly state the importance of advocacy and the need for the regulator to engage with stakeholders. It must act, as I said, in a proportionate manner. All these measures provide a safeguard against overregulation.

The noble Lords, Lord Hayward and Lord Maude, asked about burdens or potential costs on small clubs and the risk of disproportionate burdens. In addition to the explicit regulatory principle guiding the regulator to be proportionate, the entire system has been designed with this proportionality in mind. For example, the licence conditions placed on clubs will vary depending on their unique circumstances. Where clubs are smaller or lower-risk, the regulator’s requirements will reflect this. This means that the regulator will not impose unnecessary burdens on smaller or already well-run clubs.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

Before the Minister comes on to that important point, could she say a bit more about what circumstances would need to change for the National League North and the National League South to be brought into scope in the Government’s view? The noble Lord, Lord Bassam, made a powerful case about the size of many of the clubs there and the very valid point, which I meant to echo in my contribution, that those are precisely the sort of teams the Government and their predecessors were both very concerned about in the thinking that led to the Bill—the sort of teams that play such an important role in their communities, that are sometimes more precarious than those at the top of the pyramid, and that, if they went under, would leave such a hole in their communities.

[Baroness Twycross (Lab)]

I am slightly confused because the noble Lord is going from being proportionate to now appearing to want us to bring in further—

--- Later in debate ---

[Baroness Twycross (Lab)]

The primary reason, as I understand it—and it was clearly the previous Government who drafted the iteration of the Bill and the stage of the Bill that we are now at in our discussions is identical to the previous Government’s Bill—was that naming the leagues would mean that, if there was any change in the names of the leagues, there would be an issue in terms of the legislation, as I have outlined previously. I am happy to write to noble Lords on this point.

[Lord Parkinson of Whitley Bay (Con)]

I am sorry; I know this is frustrating. But this is a really important issue for the Bill and I think there is some confusion. During the debate on this, the noble Baroness very helpfully nodded to give a sense to the question—

[Baroness Twycross (Lab)]

It was hybrid—

[Lord Parkinson of Whitley Bay (Con)]

Let me just ask the question and then the Minister can clarify. Did she nod to agree to the suggestion that, if we had put the names of the leagues—which I seek to do in my amendment or which the noble Baroness and the noble Lord, Lord Bassam, seek to do in their Amendment 21—on the face of the Bill, this would make it a hybrid Bill, and the reason they are not in the Bill is to stop it being a hybrid Bill? That is what I think we think she was nodding to agree to earlier.

In the speech she has just given, she dismissed my amendment on the grounds that sometimes the names of the Premier League and the EFL and the National League change and that is the reason for doing it. That is a rather different answer from refusing to put it on the face of the Bill because it would make it a hybrid Bill. If allowing those leagues, those clubs, to have access to Parliament to make the arguments about the effects on their private interests and their business is the reason that it is not on the face of the Bill, I think they and this Committee need to know that.

[Baroness Twycross (Lab)]

I apologise hugely if my nodding at one point during the noble Lord’s comments meant that other things were inferred. It has reminded me of the dangers of nodding, whether you are nodding to indicate that you understand a point, or that you agree with a point. I was nodding was because in the explanation of this group of amendments that I received from officials earlier today, they made it clear that following the tabling of Amendments 19 and 21, issues have been raised about hybridity. That was the point at which hybridity was raised with me. I hope noble Lords will accept my writing to them to clear up any other issues that might have been raised. I know they want to work constructively on the Bill to make sure that we put in place as soon as possible an effective and proportionate regulator that safeguards the future of our national game, which was a manifesto commitment by the three main parties. I look forward to discussing these amendments further, ahead of Report.

[Baroness Twycross (Lab)]

Yes.

[Lord Parkinson of Whitley Bay (Con)]

With respect to the noble Baroness, Lady Taylor, that point is by the by. I had not appreciated the hybridity question until my Amendment 19 was tabled and the clerks advised me about it, as I am sure she had not in relation to her Amendment 21. It raises some fundamental questions. It is unfortunate that we have come to debate them at this late hour, and I am grateful to the Minister for undertaking to write to the Committee about this; I hope she will be able to do that before our next meeting.

We need to understand this point, because it is a further instance of democracy being denied—the limiting effect it has not just on the ability of both Houses of Parliament to scrutinise legislation, but on private citizens making representations to Parliament about the direct effect on their companies, businesses, clubs and organisations. I asked the Minister about Clause 91, which seeks to deny the right to use the hybrid powers so that they can make their views known directly. If we are going to go down the route that seeks to close this off not just in the Bill—in primary legislation—but in secondary legislation too, we need clarity on this before we go much further.

[Baroness Twycross (Lab)]

As I said, I will write to noble Lords on this point, noting that I know they want to work constructively on the Bill. I have a few more points to cover, so if I could continue without interruption, I will reply to anybody in writing if we need to.

On Amendment 25 in the name of the noble Lord, Lord Parkinson, I understand that delegated decisions of such importance as the scope of regulation should be made only after proper consideration and in consultation with all key stakeholders. This is exactly what has been done over several years of development of the Bill. It was carried out by the previous Government, in which, as has been noted, the noble Lord served, although I accept that we are bringing forward this legislation, so it is the Labour Government’s Bill now.

The initial intended scope of the Bill is built on a strong evidence base and extensive consultation with the industry, including a White Paper. Therefore, the Government do not feel it is necessary to require additional consultation before the first regulations are specified in scope in secondary regulation. This would impose unnecessary burdens on the industry and the Government and risk significantly delaying the regulator being able to implement its regime.

On the question that Clause 2 stand part of the Bill, I thank the noble Lord, Lord Moynihan, for giving notice of his intention to oppose this. As is standard procedure, the Bill sets out the key definitions used in this legislation. These are required to ensure that there is legal clarity throughout the Bill and to prevent confusion when looking to practically implement this legislation.

Football Governance Bill [HL]

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Committee stage
Wednesday 27th November 2024 Lords Chamber

[Baroness Twycross (Lab)]

I draw the noble Lord’s attention, and other noble Lords’ attention, to the first line on page 2. Even if it does not have the word “definition”, it is quite clearly a definition. It says:

“For the purposes of this section, English football is sustainable if it … continues to serve the interests of fans of regulated clubs, and … continues to contribute to the economic or social well-being of the local communities with which regulated clubs are associated”.

[Lord Parkinson of Whitley Bay (Con)]

I am very grateful to the noble Baroness for her remarks and I agree with my noble friend Lord Hayward that she has covered a wide-ranging debate very reasonably. It was useful to get some of the thinking in the Government’s mind behind the way that Clause 1 is set out, and she was right to draw attention, as she did at the end, to the way Clause 2 tries to expand on this. As she knows, we have amendments down to look at that a bit further.

I am sorry that she repeated the points about amnesia. The reason I rose again to speak at some length before her concluding remarks was to reiterate the cross-party gestation that the Bill has had and the interest that is there. She mentioned that her notes gave her little to say on the points that my noble friend Lady Evans of Bowes Park raised about growth. After a debate of this length, there was time to get a few additional notes, so I hope she might be able to write to my noble friend and the rest of the Committee on that. But I am grateful for what she said. I will go back through the official record and look at the points that noble Lords have raised in relation to Clause 1. With that, I beg leave to withdraw my amendment.

--- Later in debate ---

[Baroness Twycross (Lab)]

I genuinely welcome these amendments and appreciate the sincerity of the concerns noble Lords may have about the possible ramifications were the regulator to operate outside of governing body rules, including the potential ramifications for domestic teams playing in international competitions. The noble Lord, Lord Parkinson, noted that this threat might be alarming to fans. It behoves us all in your Lordships’ Committee not to spread unwarranted alarm and I hope it will be useful if I am able, in response to this debate, to reassure noble Lords—and, through the debate, fans—that we do not believe that there is any risk from the Bill as it stands to our domestic teams playing in international competitions. I reassure the noble Baroness, Lady Fox, that we definitely have the interests of fans at heart, and I say to my noble friend Lord Watson that I welcome his comments; I am not confused and nor should noble Lords be.

On Amendments 5 and 6, I assure the noble Lords, Lord Moynihan and Lord Maude of Horsham, and my noble friend Lord Watson that there is no intention that the regulator will fall foul of UEFA’s, FIFA’s or the International Olympic Committee’s rules, or that the regulator will take any action that would lead to English club or international sides being unable to play in certain competitions, such as the European Championships.

The Government have worked closely and consulted with UEFA, FIFA and, in particular, the FA throughout the development of the Bill, and will continue to work with them as it progresses through Parliament. The noble Baroness, Lady Evans, raised remarks I made at Second Reading. I can confirm that the Minister for Sport recently held a very positive and constructive meeting with UEFA, in which she reiterated that we will continue to work with it as the Bill progresses. We have listened to previous concerns and have responded by removing a clause from the previous Bill which required government foreign and trade policy to be considered when approving takeovers. In response to the noble Lord, Lord Birt, I hope I can provide assurance, in that my understanding is very clear that they have confirmed that they do not now have concerns about the Bill as it stands.

[Lord Parkinson of Whitley Bay (Con)]

Noble Lords are listening carefully to the Minister’s words, and she says it is her “understanding”. Is it the Government’s clear view that UEFA and FIFA are happy? She said also that it is not the intention of the Bill that this would take English football into areas that might cause conflict, but I think noble Lords were probing not the intention but the risk that it might do so. Perhaps she is able provide something further in writing, but noble Lords are seeking certainty and precision in her response.

[Baroness Twycross (Lab)]

There is nothing in the Bill that conflicts with English clubs or the English national side competing in international games, as the rules of the international bodies stand currently.

--- Later in debate ---

[Baroness Twycross (Lab)]

The noble Baroness refers to my point about this not being alarming. I do not want fans to be alarmed by our discussion. It was a private letter from UEFA; there is no intention for it to be published. I assure noble Lords that this Government will not do anything to jeopardise the FA’s membership of UEFA or the participation of English teams in UEFA competitions.

[Lord Parkinson of Whitley Bay (Con)]

I am a little disappointed by the Minister’s reply to my noble friend. An important point to bear in mind is that we are not probing just the Government’s intentions, and the Minister has been very clear that it is not the Government’s intention to put in peril English clubs’ participation in international tournaments. However, the risk is that the independent regulator—ironically, as it is more independent from Government and able to do things—could take us into areas that do jeopardise that. The Government have made some changes to the Bill to try and satisfy concerns raised about its independence from Government, and we will touch on those, but I know that they are trying to help. Can she address the distinction between the Government’s intentions and actions, and what the Bill does in bringing about an independent regulator that can, through its actions, inadvertently lead to some of the jeopardy raised by noble Lords?

National Youth Strategy

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Wednesday 20th November 2024 Lords Chamber

[Baroness Twycross (Lab)]

For the purposes of brevity, I shall just say yes.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, as there are a few moments left, may I ask the Minister about something that her right honourable friend the Secretary of State for Science, Innovation and Technology said which has been reported in the papers today? He said that he was open-minded about a ban on under 16 year-olds being on social media. His statement made a big play about the injurious effects of social media on young people, saying that they are at the sharp end of a revolution in social media. Is that under active consideration by the Government? How does the Minister think that tallies with their commitment to give 16 year-olds the vote? Will they be able to exercise their democratic rights at 16 if they have not had the opportunity to engage with political debate and political discourse on social media, as they presently can?

[Baroness Twycross (Lab)]

The noble Lord makes an interesting point, particularly about votes at 16. I neglected to respond to the noble Baroness’s point on that subject. We anticipate, and plan to introduce, votes at 16 before the next election, when parliamentary time allows. We are exploring all the issues in relation to social media and so forth, and I will write to him with a fuller response on that.

Budget: Arts, Heritage and Cultural Organisations

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Thursday 14th November 2024 Lords Chamber

[Baroness Twycross (Lab)]

Okay—I will carry on until I am cut off.

The right reverend Prelate the Bishop of St Albans, the noble Baroness, Lady Fleet, and the noble Lord, Lord Parkinson, among others, raised the issue of national insurance contributions. I know that the announcement of an increase in the rate of employers’ national insurance contributions has caused some concern across these sectors. Officials from my department have spoken with a number of major cultural organisations to understand how it will impact them.

Regarding the cuts to the levelling-up funding for cultural projects, mentioned by the noble Baroness, Lady Sater, and the noble Lord, Lord Parkinson, the Chancellor has set out the state of the UK’s spending inheritance from the previous Government—a forecasted overspend of £21.9 billion above limits set by the Treasury in the spring. The MHCLG will consult with potential funding recipients, including funding to some projects related to DCMS-sponsored cultural bodies, before a final decision is made. Recipients will have until mid-December to respond.

This Government are absolutely committed to culture, as we believe is demonstrated by the positive settlement achieved for DCMS at the Autumn Budget. However, to repair the public finances and help raise the revenue required to increase funding for public services, the Government had to take some difficult decisions, including increasing the rate of employers’ national insurance.

On the impact to charities in particular, our tax regime, including business rates exemptions, is among the most generous anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

The noble Earl, Lord Clancarty, raised the issue of support for the Welsh National Opera, and I am happy to pick that up with him separately outside this debate.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I sympathise entirely with the Minister; I know what it is like to watch the Clock when there are lots of questions to answer. She kindly offered to write. Will she commit to going through the Official Report and picking up some of the detailed and technical questions that noble Lords raised? I know that we would be grateful.

[Baroness Twycross (Lab)]

Absolutely—I would be happy to. We are almost out of time, so I again thank the noble Baroness, Lady Sater, for raising the issue and securing this debate. A number of these one-hour debates on Thursday afternoons could be considerably longer. I look forward both to working closely with the sectors and to continuing to provide the support they need.

Olympic and Paralympic Games: Team GB

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Monday 4th November 2024 Lords Chamber

[Baroness Twycross (Lab)]

I have the privilege of giving the House a demonstration of how I have moved around the country: I now live near Stoke Mandeville, and Buckinghamshire is the home of the Paralympics. Nobody in your Lordships’ House can be in any doubt of the acute crisis facing the NHS. I recognise the issue that the noble Baroness raises and will speak to my noble friend Lady Merron about it.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the whole Commonwealth is grateful to Glasgow for stepping in to host the next Commonwealth Games in 2026 and we wish Glasgow every success, as it had in 2014. However, many sporting bodies around the world have expressed concern at the reduction in the number of sports being included—seven fewer than the last time Glasgow played host. Among those that have been cut are diving, part of every Commonwealth Games since 1930; badminton, squash and table tennis, meaning there will be no racquet sports; cricket; hockey; the triathlon, and more. With the Games already billed as low-cost and smaller-scale, how are the Government supporting Glasgow to ensure that the Games are a success and that they too inspire new generations of people in a wide range of sports?

[Baroness Twycross (Lab)]

The Commonwealth Games are a clear and key part of the elite pathway in many sports. They are a really important event, which is why the Government have agreed to provide up to £2.3 million of contingency funding to support the safety and security required. We anticipate that Glasgow 2026 will deliver over £100 million of inward investment to the city through the Games. That will support economic and social benefits for Glasgow but also be an inspiration for future generations to come.

Young People: Government Policy

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Thursday 31st October 2024 Lords Chamber

[Baroness Twycross (Lab)]

The noble Lord correctly identifies that one of the reasons young people do not engage with traditional politics is that we do not engage with them. I will feed back the points he raises but I assume that, as the national youth strategy is going to be co-produced with young people, how politicians communicate with young people, including what resources we need online, will be part of the development of that strategy.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am delighted that the noble Baroness and the Government are helping to ensure that people of all ages can play their full part in our democratic processes, but how does she square that with the Government’s proposals to remove people from one of our Houses of Parliament based solely on their age?

[Baroness Twycross (Lab)]

The noble Lord might have to wait until that comes up through the legislative process to have a further debate on that point.

Olympics and Paralympics: Competitors in Female Categories

Debate between Lord Parkinson of Whitley Bay and Baroness Twycross

Tuesday 29th October 2024 Lords Chamber

[Baroness Twycross (Lab)]

I do not believe I have said anything to suggest that we would go against the IOC on this one. In relation to the international governance of boxing, a new international federation, World Boxing, was established in 2022. It now has 42 member national federations, including England, Scotland, Wales and a number of others from our like-minded coalition on the sports issues relating to Russia and Belarus.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the International Olympic Committee has been very clear that all the women who competed in the female boxing category at this year’s Olympic Games were born as women, lived their whole lives as women and,

“comply with the competition’s eligibility and entry regulations”.

This is not, therefore, a question about trans athletes’ participation in competitive sport. I welcome the approach the Minister has taken. Does she agree that this is, rather, an example of an international governing body regulating its sport independently? Will she join me in sending congratulations to all the men and women who represented their countries at the Olympic Games this summer?

[Baroness Twycross (Lab)]

Absolutely. I wholeheartedly join the noble Lord in congratulating all those who were successful in their respective sports during the summer.