Source · Select Committees · Public Accounts Committee
Recommendation 29
29
Accepted
Sport England told us that lots of sports facilities providers had used their organisational reserves...
Conclusion
Sport England told us that lots of sports facilities providers had used their organisational reserves to stay afloat during the pandemic and were now in a precarious financial position. The Department also recognised that “many clubs are coming out of a really difficult period and many clubs are struggling”.51 We received written evidence from the Local Government Association, which told us that the total energy bill for the leisure sector had risen from £500 million in 2019 to between £1–1.2 billion for 2022.52 We also 45 Q 48; C&AG’s report, para 2.23, Figure 11 46 Q 42 47 Correspondence to the chair submitted by Sport England, 14 November 2022 48 Qq 56, 61; C&AG‘s report, para 1 49 Q 48 50 Q 56 51 Qq 54, 56 52 GPA0003, Local Government Association, Grassroots participation in sport and physical activity, 1 November 2022 18 Grassroots participation in sport and physical activity received written evidence from the District Councils Network, which reported that 70% of councils were considering scaling back their leisure services amid financial pressures.53 In addition to this, the leisure facilities estate is ageing—many types of sporting facilities have an average age of more than 30 years—and are in poor condition. For example, written evidence received from the Lawn Tennis Association told us that 45% of public park tennis courts are categorised as being in poor, very poor or unplayable condition.54
Government Response Summary
The government agreed to review the condition of leisure facilities, working with other departments, and take action to ensure their financial sustainability, aiming to provide an update by June 2023; they also mentioned providing support through the Energy Bills Discount Scheme and the Swimming Pool Support Fund.
Government Response
Accepted
HM Government
Accepted
7. PAC conclusion: The Department does not know if leisure facilities are financially sustainable or are delivering the sports facilities that communities need. 7. PAC recommendation: The Department should urgently review the condition of leisure facilities and, working with the Department for Levelling Up, Housing & Communities and other government departments, take action to ensure their financial sustainability. The Department should write to us with an update on this review by June 2023. 7.1 The government agrees with the Committee’s recommendation. Target implementation date: before Summer 2023 7.2 The government recognises the positive impact that leisure facilities, gyms and sports clubs can have on individuals' physical and mental wellbeing. They also provide vital social spaces and community hubs. 7.3 The government also recognises that the recent rises in cost of living and energy costs is of concern for many clubs and local authorities. In response to this, DCMS have provided support via two schemes which leisure facilities were eligible for. 7.4 In September 2022, the government announced the Energy Bill Relief Scheme (EBRS) which provided £18 billion worth of support for all businesses and other non-domestic energy users. This will then be replaced with the Energy Bills Discount Scheme (EBDS) which will support businesses between April 2023 and March 2024. In addition to these schemes in March 2023 the government announced the £63m Swimming Pool Support Fund (SPSF) that will provide targeted support to leisure centres with swimming pools to help mitigate short term pressures and deliver longer term sustainability through capital investments. 7.5 Through the SPSF, the government will continue to review the condition and financial suitability of the sector and provide targeted support as necessary. DCMS will be able to provide an update on the progress of this work in June 2023. DCMS is also working on the creation of facilities strategy which will outline the government’s vision for the future of these vital assets including to provide guidance to the sector and local partners on the role of this provision, reinforcing the need to join up with the health sector, and encouraging investment in sustainable facilities.