Football Governance Bill [Lords] Debate
Full Debate: Read Full DebateStuart Andrew
Main Page: Stuart Andrew (Conservative - Daventry)Department Debates - View all Stuart Andrew's debates with the Department for Digital, Culture, Media & Sport
(1 day, 15 hours ago)
Commons ChamberI beg to move an amendment, to leave out from “That” to the end of the Question and add:
“this House declines to give a Second Reading to the Football Governance Bill [Lords], because, notwithstanding the need for financial sustainability in the English football league pyramid, the Regulator proposed to be established by the Bill will damage the independence of English football, particularly given the Government’s proposed choice for the Chair and because the Bill will increase the regulatory burden and costs on all English football clubs—particularly lower league clubs—leading to increased ticket prices for fans and will in turn reduce the international competitiveness of, and increase the risks to, English football.”
Let me begin by offering my congratulations to Liverpool FC on winning the premiership yesterday and to those who have been promoted, and I feel I especially need to mention two of my former homes—namely, Leeds and Wrexham.
I think I speak for all Members when I say that football is a defining part of our national identity. With clubs bringing fans and communities together week in and week out, football has been a great unifier since its inception. It was a football match that famously brokered a momentary truce on the western front on Christmas day in 1914. Since the inaugural FIFA world cup in 1930, football has brought nations together around one central purpose—the love of a game—in friendly competition. Football is a multibillion-pound industry with a truly global footprint, and I know that Members across this House want to secure its future growth.
The collapse of clubs such as Bury and Macclesfield, the devastating impact of the pandemic and the failed attempt by some English clubs to join a breakaway European super league have all highlighted that the future of the clubs we love and of the beautiful game is far from guaranteed. For this reason, we introduced the original Football Governance Bill, aimed at securing the future of football clubs for the benefit of both communities and fans. This proposed legislation, as we have heard, followed the fan-led review that was brilliantly chaired by our former colleague, Dame Tracey Crouch, and extensive consultation with a wide range of stakeholders and experts. I, too, want to pay tribute to Dame Tracey, and to all those who participated in the process and contributed to shaping our Bill.
However, it is because of the importance of football, both to our national identity and economy, that we have had to take a decision regarding our stance on this particular legislation. When circumstances change, so too will our approach—and things have certainly changed. This is not a decision we have taken lightly, but after careful consideration of our responsibility to the game, the clubs at its core and the millions of fans who cherish it, we have reached the conclusion that we must vote against Labour’s version of the Football Governance Bill.
The Bill we are considering today is not the same as the one that we originally envisaged. It has been fundamentally altered to a point where it threatens to do far more harm than good. The Secretary of State says in one breath that it is same Bill, and in the next breath that she has changed it all, which is almost like saying that Manchester United and Manchester City are the same. The Government’s decision to appoint a Labour donor as chair of the independent regulator raises serious concerns about political interference in football governance.
First and foremost, and I will come on to this, is the fact that the regulator is no longer independent.
My right hon. Friend is making the key point. With the Secretary of State’s choice of chair, it is no longer an independent regulator. If a Conservative party donor was being presented by a Conservative Secretary of State, does my right hon. Friend think that the right hon. Member for Wigan (Lisa Nandy), as shadow Secretary of State, would support that stance? Is it not one rule for her and one rule for everyone else?
I will absolutely come on to that point. When the regulator is being set up and you look for people, you cast the net wide. Of course you do. You want to know who is interested and you want the best candidates. But I tell you something: if any donor of any political party had been put forward and recommended to me, I would have said no. That is the difference. The right hon. Lady said yes to a Labour crony. I would have said no.
I confess that when preparing and drafting our version of the Bill, I went through a whole host of conflicts in my mind—what to include, what not to include—but after months and months of consultation with a wide range of stakeholders, from fans and fan groups, the FA, the Premier League, the EFL, the National League, UEFA, FIFA and many, many roundtables with MPs from across the political divide, the Bill that we presented was, I believe, measured and proportionate, tightly scoped to ensure the financial stability of football clubs, the sustainability of the leagues and fans given a say over their clubs’ heritage. Two things stood out most to me throughout all my engagement: first, the consistent call for it not to be overburdensome and costly, particularly for lower clubs; secondly, that it must be independent, like all sports.
My right hon. Friend will be aware that the new chairman of the Labour football regulator gave £5,000 to the hon. Gentleman who has just chortled from his seat, the hon. Member for Bury North (Mr Frith), and another £70,000 to other Labour Members, and will be getting a return of £130,000 per year for a three-day week—half a million pounds of personal return on that £75,000 investment over this Parliament. If the Secretary of State was sitting on the Opposition Benches, she would be able to smell the hypocrisy and the stink of corruption. That is why we cannot accept this appointment: it does not ensure the independence that this position certainly requires.
I wholeheartedly agree with my right hon. Friend. He is absolutely right. This is not—[Interruption.] From a sedentary position, Labour Members are saying, “You shortlisted them.” Let me assure this House: I most certainly did not shortlist this gentleman. Even if he was presented to me, there is no way I would have appointed him, for precisely the reasons my right hon. Friend has set out.
Labour’s expanded remit for the IFR significantly increases the regulatory burden on clubs. Make no mistake: it will be the smallest clubs—the beating hearts of their communities—that will be hit the hardest. The Government’s own impact assessment estimates that the cost of compliance could reach a staggering £47.3 million, and make no mistake: that will push ticket prices up.
At the FSAs’ 2023 annual general meeting, the shadow Minister said:
“Despite the phenomenal success of football at home and abroad, we have seen too many examples of the devastating impact the failure of a beloved club can have on a local community.”
My local club in Gateshead was nearly wound up in 2019. Is he really content to maintain the grotesque status quo, which allows too many of us to lose our clubs, to score political points on this matter?
I say to the hon. Gentleman that his party is actually going to be adding cost to those clubs. I have just mentioned the £47.3 million, but with the football regulator’s remit now considerably expanded, operational costs could rise to £150 million, which clubs like his will have to fund through the levy.
Baroness Brady, someone with deep knowledge of the football industry as vice-chairman—[Laughter.] Labour Members mock, but the Sports Minister, the hon. Member for Barnsley South (Stephanie Peacock), had to retract similar comments, which she did graciously, I have to say. Baroness Brady has raised serious and well-founded concerns about these costs and the disproportionate impact they will have on clubs, as all this comes against the backdrop of Labour’s wider economic mismanagement, which is already undermining the financial stability of our football clubs. Labour’s new national insurance job tax will hit clubs’ finances hard, with the Premier League saying it will amount to £50 million a year and £250 million over the life of this Parliament, compounding the pressures of increased regulation.
At the same time, football stadiums are facing higher business rates under Labour’s watch. To give a few examples, Wembley stadium is set to pay £829,000 more, while the Etihad stadium will see a rise of £564,000. These are not abstract figures; these are real costs that will trickle down to fans through higher ticket prices, reduced investment on or off the pitch, or even clubs having to close.
Against this backdrop, we now have very real concerns about the impact of these changes on smaller clubs. Indeed, Mark Ives, the former general manager of the National League, highlighted the financial strain that increased regulation will place on lower league clubs, calling it, quite rightly, “a huge concern.”
However, and most egregiously of all, the Government have fatally undermined the IFR’s independence. The fan-led review into football governance was unequivocal that a credible regulator must be fully independent, free from political influence, and certainly free from Government interference. It stated clearly:
“Independence means operations and decision making are independent from the government”.
That is a critical element for me personally. That point was made over and over again in almost every discussion I had, and quite right too.
This is not a Labour-leaning businessperson who is generally independent but decided to support Labour; this is someone who was a director of LabourList until just a few weeks ago. This is someone who is absolutely embedded in the Labour establishment, who funded Labour Members including the Chancellor, now being given this half-a-million-pound boondoggle for the next four or five years. Does my right hon. Friend agree that the regulator clearly is not independent and that Labour needs to think again?
It feels like my right hon. Friend has already read my speech, because those are the points that I want to make. When I had those extensive meetings, that question of independence was absolutely raised time and again by fans who were worried that they did not want party politics or Government interference in the game they love, by clubs and leagues, who time and again wanted reassurances that a regulator would be truly independent, and by UEFA and FIFA in particular, who have strong statutes about political and Government interference in football, as indeed most international sports governing bodies do. I pledged and promised to all of them that independence meant just that. I fully understood the possible consequences if the regulator were seen as anything other than independent. That is why independence matters, and why I always held it dear.
There are not only political concerns about independence but concerns from the EFL about the regulator’s previous links with the Premier League. Does my right hon. Friend agree that when trying to make a digital decision when, for example, we come to the backstop and choosing one side over the other—the EFL or the Premier League—which is in effect what the legislation does, there would be a conflict of interest if the regulator had worked for the Premier League?
My hon. Friend makes really important points. This appointment is really important to the future of the regulator. What have the Labour Government done? They have announced the appointment of David Kogan, a key Labour donor and political insider, to lead the football regulator. It is deeply troubling—[Interruption.] No, I am sorry, but I feel really strongly on this.
Let me be clear: Mr Kogan is no impartial figure. He is a long-standing member of Labour’s inner circle, having donated thousands of pounds to the party and having spent five years on the board of LabourList, the party’s propaganda outlet, resigning only this month, as my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) said. This appointment is not about qualifications or about merit; it is about rewarding a political ally. At the same time, Labour have totally thrown out any credible claims that the regulator is independent and free from political interference. Football fans deserve better, the British public deserve better, and our national game deserves protection from political meddling.
The right hon. Gentleman must have been upset when the previous Government appointed Richard Sharp as chairman of the BBC as he was not only a former donor to the Conservative party, but a member of a think-tank. Did he express similar views to his Government back then when they made that appointment?
The hon. Gentleman has just highlighted the fact that Labour Members went mad about that, but now they are doing so because this is one of theirs.
Media outlets are now reporting that even some EFL clubs are deeply worried about this political appointment. If they are worried, we should be worried and we should listen. Members will recall that this is not the first time that alarm bells have been sounded about political interference in football governance. Well before this deeply questionable appointment, UEFA raised serious concerns that England risked exclusion from the European championship due to concerns that a Government-backed football regulator could lead to unacceptable political interference. We understand that in a letter from UEFA, which is still being withheld from Members by this Government, the general secretary said:
“One particular area of concern stems from one of UEFA’s fundamental requirements, which is that there should be no government interference in the running of football. We have specific rules that guard against this in order to guarantee the autonomy of sport and fairness of sporting competition; the ultimate sanction for which would be excluding the federation from UEFA and teams from competition.”
And that was written before the Government sought to install a Labour crony at the helm of the football regulator.
We began this debate by recognising football for what it truly is: not just a sport but a pillar of our national identity; something that unites communities, carries our shared history and inspires future generations. It is because we care so deeply about this game and everything it represents that we cannot, in good conscience, support a Bill that risks compromising its very foundations and its independence.
The shadow Secretary of State says that he cares deeply about football and the communities that it unites. My patch is just down the road from Reading, where we have seen truly horrific scenes as a bad owner has ripped the heart out of the football club and driven it almost to the point of extinction. Reading fans back this Bill, and they do so because they know that the Bill will make it far harder for what has happened to Reading ever to happen again. So I ask the right hon. Gentleman: why will he not back this Bill?
I have just been explaining why: it is because this Government have made an independent regulator a party political regulator. I am ashamed that they have done this.
I ask the Minister to answer this question in her summing up: does she not appreciate that the appointment of David Kogan drives a coach and horses through the independence of the football regulator? Does she not understand that the appointment of Mr Kogan only exacerbates the risk that the introduction of the regulator could lead to England being excluded from European competitions? Will she publish all correspondence received from UEFA so that Members and fans can be better informed of that risk? Given that there have been so many donations to Members of Parliament, including the £5,000 that was given to the Chancellor, will she publish all correspondence regarding the IFR from No. 10 and No. 11? Will she also explain how smaller clubs will be expected to cope with the increased regulatory burden she has brought in?
It truly pains me to see what this Government have done regarding this issue, playing fast and loose with the independence of the regulator. They have turned this into a Labour Government regulator, increasing burdens on clubs when the Treasury is already hammering them with its taxes. It is beyond disappointing and I am genuinely furious—[Laughter.] Labour Members may laugh, but when I met those stakeholders, I made it really clear that independence was sacrosanct. The Government have destroyed that in one appointment. They have put their crony before clubs and their friends before fans. They have put their donations ahead of football. That is why we have no confidence in this Government’s ability to bring in a truly independent football regulator that will not raise more questions than it solves.
I would first like to thank the Secretary of State for Culture, Media and Sport, and the Under-Secretary of State for Culture, Media and Sport, my hon. Friend the Member for Barnsley South (Stephanie Peacock), for bringing the Bill before the House today. I have it written down here somewhere that I should thank the right hon. Member for Daventry (Stuart Andrew) for gallantly coming forward on this issue before the election, when he supported the Bill, but I am flabbergasted; to think that I came in here this afternoon to thank him, when he has changed his mind completely! What will Dame Tracey Crouch be thinking, watching this on her television? She will be utterly ashamed, appalled and disgusted. She did an incredible amount of work to bring this Bill to the Chamber. She spoke to the Football Supporters Association and to every organisation she could to try to get to people’s true feelings in her work on the Football Governance Bill.
I would love the right hon. Member for Daventry to explain what he said about this chap who is being appointed as regulator. The Conservatives want to kill the Bill because of that. That is absolute nonsense, man, and the Tories and the Government understand that. They just say what they do for the sake of opposing a fantastic Bill.
Surely the hon. Gentleman understands that across all sports, political interference is frowned on, and has consequences for teams across the nation. Surely he agrees that the independence of the regulator is paramount.
I think I agree with that, but from what I have heard from my hon. and right hon. Friends, the proposed independent regulator was on a list that they received from the Tory Government. This bloke who everyone on the Tory Benches has hammered was on a list proposed by the Tories—
Of course he was. He was on the list, and there were other people on the list who were Tory donors. This fantastic Bill, which will give a lot of comfort to football supporters, is being opposed by the official Opposition because of one individual being appointed. He is obviously the best man for the job. The way I measure it is this: the louder the Tories scream and the more opposition they give to anything we say, the better it is, so I congratulate the right hon. Gentleman. The louder he shouts, the better. This was the best the Labour Government could do. Let us hope that this individual is welcomed with open arms. He has a hell of a job to do to make sure that football supporters in this country are actually listened to—and it is the football supporters’ game.
Not so very many years ago, the rich and the elite tried to steal the working man’s game in Europe. They tried to take it abroad, without any consultation with the fans who pay for season tickets. Football supporters absolutely love the clubs, and they are greatly insulted by the rich and the elite who are trying to take away their traditions, their culture, and their history, because that is what that is. Football is not just a religion, as my hon. Friend the Member for Carlisle (Ms Minns) said; it is much more than that. This Bill goes a long way to support fans up and down the country and give them that bit of reassurance that the Government have their back.