Recommendations & Conclusions
5 items
6
Conclusion
Third Report - Impact of COVID-19 on DC…
Accepted in Part
The current football business model is not sustainable. The Covid-19 crisis has shone a stark light on the financial issues within football, specifically in the leagues below the Premier League. The Premier League is the main income generator of English football. If it does not step up to help the …
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The current football business model is not sustainable. The Covid-19 crisis has shone a stark light on the financial issues within football, specifically in the leagues below the Premier League. The Premier League is the main income generator of English football. If it does not step up to help the English Football League, many more clubs will follow in Bury FC’s footsteps. The EFL needs also to ensure it develops a more sustainable financial model.
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Government response AI summary
The government notes salary caps have been introduced in EFL One and Two and is in discussions for the Championship. It commits to a fan-led review of football governance, while reiterating that financial stability is primarily for the Premier League and EFL to consider.
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Department for Culture, Media and Sport
7
Recommendation
Third Report - Impact of COVID-19 on DC…
Accepted in Part
We firmly believe that football must use its response to the Covid-19 crisis to ‘reset’. The crisis has shone a light on the culture of unfair pay in football. The decision by some Premier League clubs to furlough non-playing staff was deplorable, and we welcomed its reversal. Parachute payments must …
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We firmly believe that football must use its response to the Covid-19 crisis to ‘reset’. The crisis has shone a light on the culture of unfair pay in football. The decision by some Premier League clubs to furlough non-playing staff was deplorable, and we welcomed its reversal. Parachute payments must become a thing of the past, and considerable work must be done to advance work on salary caps. DCMS should engage with the Premier League and the EFL to learn lessons from abroad on policies such as salary caps, which may seem radical to those inside UK football, but seem to work well elsewhere.
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Government response AI summary
The government notes that salary caps were introduced for English Football Leagues One and Two and discussions are ongoing for the Championship. It committed to a fan-led review of football governance, which will consider the Owners’ and Directors’ Test, but stated that the financial stability …
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Department for Culture, Media and Sport
15
Recommendation
Third Report - Impact of COVID-19 on DC…
Accepted in Part
To further combat the negative effects of closure, and to stimulate long-term recovery, the Government should introduce other fiscal measures. We recommend the cut in VAT on ticket sales for theatre and live music be extended beyond January 2021, for the next three years. The Government should increase Theatre Tax …
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To further combat the negative effects of closure, and to stimulate long-term recovery, the Government should introduce other fiscal measures. We recommend the cut in VAT on ticket sales for theatre and live music be extended beyond January 2021, for the next three years. The Government should increase Theatre Tax Relief to 50% for the next three years and broaden the definition of ‘core expenditure’ in line with the industry’s proposals. It should introduce a Music Tax Relief, modelled on existing reliefs such as the Orchestra Tax Relief. The Government should also develop a system to save ‘Assets of Cultural Value’ along the lines of the regime for ‘Assets of Community Value’. This would allow a moratorium on the sale of a building while stakeholders seek an alternative bidder to maintain the asset as a cultural business. The Government should also build on recent ‘Agent of Change’ planning reform to protect cultural assets by tightening planning regulations around change of use from venues or music studios to residential and other developments.
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Government response AI summary
The government extended the temporary VAT cut for tourism and hospitality until March 2021 (shorter than recommended) and stated that other tax reliefs are under review. It highlighted existing reforms to planning regulations, including the 'agent of change' principle and changes to the Use Classes …
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Department for Culture, Media and Sport
19
Recommendation
Third Report - Impact of COVID-19 on DC…
Accepted in Part
Government must address the urgent need for the UK’s cultural industries to be covered by adequate insurance. Without it, efforts to resume filming, touring and live performance are doomed to failure. Alongside working with the insurance industry to introduce a long-term pandemic reinsurance scheme, the Department for Digital, Culture, Media …
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Government must address the urgent need for the UK’s cultural industries to be covered by adequate insurance. Without it, efforts to resume filming, touring and live performance are doomed to failure. Alongside working with the insurance industry to introduce a long-term pandemic reinsurance scheme, the Department for Digital, Culture, Media and Sport should establish an emergency fund to guarantee coverage for TV and film productions, stage productions, concerts and tours interrupted or abandoned due to Covid-19. (Paragraph 79) Tourism
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Government response AI summary
The government announced a temporary £500 million Film and TV Production Restart Scheme to compensate for COVID-19 related delays or abandonment, partially addressing the call for an emergency fund for some cultural industries but not covering all sectors or a long-term reinsurance scheme.
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Department for Culture, Media and Sport
23
Recommendation
Third Report - Impact of COVID-19 on DC…
Accepted in Part
The capacity constraints that arise from the requirements of social distancing make yield management and smoothing out demand more important than ever. The Eat Out to Help Out programme will help shift some demand to trough days. Doubtless attractions, transport providers and lodgings will re-examine their own promotional programmes to …
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The capacity constraints that arise from the requirements of social distancing make yield management and smoothing out demand more important than ever. The Eat Out to Help Out programme will help shift some demand to trough days. Doubtless attractions, transport providers and lodgings will re-examine their own promotional programmes to maximise yield in these circumstances, and where relevant, attractions will look at their opening hours/days. DCMS needs to go further in supporting work to reduce the seasonality of the UK tourism industry. This will matter next year, as well as in 2020, due to the problem of booking deferrals and concomitant loss of income for a second year in a row. In its response to this report, DCMS should set out its plans for supporting an extension of the holiday season. As a matter of urgency, DCMS should introduce a Tourism Data Hub to assess visitor intention for 2021 so that the industry can plan ahead for next year.
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Government response AI summary
The government partially accepted, outlining existing measures like VAT cuts, business rates relief, and domestic campaigns to extend the holiday season. For the Tourism Data Hub, it committed to implementation and is actively seeking funding and support.
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Department for Culture, Media and Sport