Non-Domestic Rating (Lists) (No. 2) Bill

Debate between Lord Moynihan and Lord Addington

Report stage & Lords Hansard
Monday 1st March 2021 Lords Chamber

[Lord Addington (LD)]

My Lords, I return to the subject of support for amateur sports clubs which I raised in Committee. I, too—I might as well clarify it now—do not expect to divide the House at the end of this debate. Of course, the Minister might just manage to inspire me by his answer, but that is not normally his style. Let us see if we can be consistent about that.

The reason why I am raising this again is that, although the Minister gave me some answers, I want a bit more detail and thought about how the Government are planning for the future of sports clubs and sport itself. The Government have accepted their importance by giving them some support throughout the lockdown period, but the problems sports clubs have will, as in all sectors, not stop the minute they get back. Actually, the minute we start activity again, problems will be exposed and identified. All of them can be accentuated by finance. Business rates are part of that. That is where it comes from, so let us see if we can get some idea of whether the Government are prepared to go across department and across thinking to make sure that they accept that this group is worth keeping on.

Why are sports clubs worth keeping on? It is quite simple: in this country we have a tradition of sports clubs running themselves and being set up without government support, often with the help of employers—indeed, employers have set up sports clubs which have survived when the employer has gone. We have a tradition of self-help which has provided the infrastructure for sport to take place. At amateur level, sport is dependent on that structure. These clubs and centres depend, for example, on their bars and on renting out rooms for other functions to keep themselves going. They are small businesses and act in the business environment even with charitable status. They have a consistent relationship of raising their own funds. How the Government are thinking slightly longer term to make sure they can carry on doing that is vital.

Let us not kid ourselves: there is a major problem coming through here. I do not know how enforced inactivity has at the moment encouraged people to retire early from a club; for instance, retiring at 32 as opposed to 35. There has been a break in activity. To take a classic example, you will not get fit as easily as you did and you have started doing something else, so you ask yourself whether you want to go through the pain and discomfort of getting back into shape. It is one of the first considerations. Also, perhaps people think they should spend more time with something else. It is when that interaction stops that people stop going. We all know that; anybody who has been involved in this knows it. I do not know how rugby union is going to handle it, having had probably the biggest break. It is probably the biggest example of this model. It will have to restructure. I do not know how, but it will be something to come back to. The Government have said they value these clubs and all the activity outside, education and structure. Clubs are going to have a problem structuring how they take on their activity and how that relates to funding.

Rates is part of that, so I will be looking to get from the Government today an idea of how they think this bit of government fits in. The idea of getting an initial review and then a continuing one is very important. Let us face it: I am not an expert on rates. Having attended a couple of meetings with my colleagues, I decided that I probably do not want to become one. This is a complicated, difficult thing. Something that has no intellectual friends is probably business rates. There is probably someone hiding in a cupboard in Whitehall who quite likes them, but that is about where they are. Can we have a look at how this local taxation affects sports clubs? How are the Government taking this on? Sports clubs are important. We are hearing about social interaction and mental health problems. Sport is a great medium for that. It is the social connection that goes through. It is physical connection and support, and something that is tied into so many other bits of government that it is not true. I hope that when the Minister answers this amendment he will give us an idea of how his department is taking a lead or feeding in on this, because it is one of the links in the chain. If this link is strong and healthy, the rest of that chain may just survive. I beg to move.

[Lord Moynihan (Con)]

My Lords, I refer to my interests in sport as set out in the register. It is a pleasure and a privilege to follow my noble friend in sport, the noble Lord, Lord Addington, and support Amendment 2 in his name. During the passage of this Bill, the noble Lord and I have simply sought to point out that, at a critical time as we seek to emerge from Covid-19 in 2021, it is hoped that the Government will finally take the vital opportunity to initiate new policies. This includes the adoption of this new clause to give a new national impetus to sport, recreation and an active lifestyle, which was missed at the last opportunity created by the London 2012 Olympic and Paralympic Games.

Birmingham Commonwealth Games Bill [HL]

Debate between Lord Moynihan and Lord Addington

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 25th February 2020 Lords Chamber

[Lord Addington (LD)]

This is an interesting group of amendments about the funding of the Games. My initial reaction was that it is an interesting idea, but how does it affect these Games? My initial response to the amendment tabled by the noble Lord, Lord Hunt, was that it is an interesting idea but not here and now because the Government told me they have underwritten the Games. We will probably have a little more transparency and more of an idea about how that underwriting takes place in a few minutes’ time, but making these Games a success is the priority in these discussions. We will not solve local government finance in a Bill with this Long Title. It was suggested to me that the department wants us to pass this amendment so that it can fight with the Treasury. I know where my money would be on that one—it would not go beyond three rounds.

What are we going to do about this? We are going to make sure we know what is happening so we can get on and do the Games and do them well. If we get it wrong—remember it is a Bill about the Games—we will lose something that we have built up a huge amount of credit for. We can do these big events well. We have a track record. We are coming in late so we cannot have the schemes and imaginative discussions we had on the Olympic Games. We are the white knights, the rescuers, coming in to make sure the wonderful, second-biggest multi-games event on the planet functions again. We are doing a good thing. If we try and Christmas-tree too many things on it, we will get into trouble. If the Government are making very clear that they are underwriting the Games and Birmingham City Council knows what the relationship is—whether it is a loan or a gift—then we are in good shape. However, we have to know.

My amendment is designed to know what packages can be done. My noble friend described it as imaginative. It is not. It simply uses examples of what we have done before. We used the National Lottery for the Olympics. Do we use some form of lottery now? Do we use something based around it? If we place a series of handcuffs on or stumbling blocks in front of the organising committee, we risk throwing the baby out with the bath water. Let us get on with it. We have come in late. We are doing a good thing. It will not be perfect. We will not have the indulgence of discussing and preparing things like we had for the Olympics, where the Bill was there before we won the bid.

Using tried and tested ideas might be the better way forward. I suggest in future that local government should know what contributions it can make, how much it can raise and what responsibilities it has. Doing a study now will help it in the future because we do not want this to be the last thing to be put on. We do not want something getting in the way of us winning hosting, for example, the soccer World Cup. Let us make sure we have clarity. I hope at the end of this discussion we will have a little more of it.

[Lord Moynihan (Con)]

My Lords, I will speak to Amendments 5, 19 and 20 in the first group. In so doing, I echo what the noble Lord, Lord Hunt, said: all of us are united in believing that the Games will be great. We already have an outstanding organising committee and there is both political and popular will to ensure that they will be memorable and enjoyable.

I thank the noble Lord, Lord Foster of Bath, for introducing my amendment so well. I need hardly say anything more, save to underline the fact that the original reporting provision required the first report to be submitted to the Secretary of State as soon as was reasonably practical after 31 March this year. Because of the delay in the legislation, that was put back a full year until after 31 March next year, which is very close to when the Games are going to be held the following year.

In the context of being transparent and accountable, not only to the people of Birmingham but to other taxpayers, it is important that there is a more regular reporting structure to and timetable for your Lordships’ House. That is why I have proposed the amendment that there should be a report, starting on 15 July 2020 and then every six months until the end of the year of the Games, 31 December 2022.

Transparency is critical. Transparency about any overruns on financing will carry the public with us. It will allow all of us to know the exact underwriting procedure, how it will be dealt with, the precise budget, the current expenditure on the Games at any given six months, and the provisions for drawing down on the contingency, which are unclear to me. I do not know if they are clear to the rest of the Committee. It would be helpful if the Minister could outline on what basis the contingency will be drawn down, particularly given that the Games are underwritten by the Government.

With those comments now on the record, clearly the amendment that I tabled about the budget and revenue sources for all Games events, including shooting and archery, has been overtaken by last night’s decision. However, I look forward to the debate that we will undoubtedly have on the second group, when we will look at some of the detail of what was announced yesterday and the consequences for the Games.