Sport Sector: Financial Support

Gavin Newlands Excerpts

Thursday 19th November 2020 Commons Chamber

[Nigel Huddleston]

I thank the Chair of the Select Committee for his comments and look forward to working with him over the coming weeks. In terms of the allocation of money, it is in the name: this is a winter survival package. It is not meant to be a full pound-for-pound compensation for lost revenue. The focus is from the point at which we were unable to open sports stadiums on 1 October through to spring. Therefore, while there may be hopes of and aspirations for a greater package, we needed to focus on what was needed to ensure that sports clubs can survive, and that is the focus of this effort. We are confident the package will do that. It is a substantial sum of £300 million and will make a huge effort in that direction.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I thank the Minister for advance sight of his statement. I have spoken many times in this place about the power of sport and the crucial role that sports clubs, be they amateur, semi-pro or professional, play in our local communities. The Minister was absolutely right to lead with that point.

I am disappointed that the Government have decided to go down the loans route, rather than having 100% grant funding. While I welcome his commitment to the national league and to women’s football, the continuing omission of support for the senior professional men’s game is disappointing. Scottish football does not have the megabucks TV deal that the English game enjoys and is almost three times more reliant than most European football on ticket sales as a share of revenue, with gate receipts making up nearly half of all revenue. Does the Minister recognise that even if a small number of fans can return to stadiums, financial support is still needed for these clubs?

If the Government pursue a reopening strategy at any future point allowing the return of fans in low infection areas, what provision will be made to devolved nations that have different lockdown rules and permissions for fan return? Will the other UK nations be forced to follow in England’s footsteps, or will support for the industry from the UK Government respect devolved decision making?

In September, I asked the Minister to commit to full engagement with the Scottish Minister for sport, Joe FitzPatrick. Will the Minister confirm that he has spoken to his counterpart in Edinburgh to explain the ramifications of this announcement for the Scottish Government’s finances? The Minister will be aware that the Scottish Government have still not received clarity on the Barnett consequentials from previous announcements. He should also be aware that the Scottish Government do not have the powers to borrow to finance a similar loan scheme in Scotland—an aberration that the Treasury could and should fix.

To conclude, will the Minister please provide clarity to this House and to Scottish Ministers about what Barnett consequentials will flow from today’s announcements, so that the Scottish Government can provide similar support in Scotland and Scottish sport is not disadvantaged?

[Nigel Huddleston]

The mix of loans and grants will of course be driven by need and the ability to repay. Of the £300 million package, we estimate at this moment that £250 million will be loans and £50 million will be grants. However, the loans will be on preferential terms and will therefore have features of a grant in the early stages, such as payment holidays, so immediate repayment will not necessarily be expected. We all have skin in the game here, and the incentive is to get sport back up and running and on its feet and paying back some of those loans, because then we all benefit.

I can confirm that there are Barnett consequentials to this, as there are for other support packages. I cannot provide the hon. Gentleman with the details at the moment. I actually talked to Minister FitzPatrick this week, and I am sure we will do so again. How the money is spent is a decision for the devolved Administrations; sport is a devolved matter.