Source · Select Committees · Culture, Media and Sport Committee
Recommendation 5
5
Paragraph: 22
With no clear messaging from the Government about when spectators can expect to return to...
Recommendation
With no clear messaging from the Government about when spectators can expect to return to sporting events, we support calls from elite sports organisations for the Government to extend its financial assistance for those organisations that are unable to generate revenue until mass gatherings are permitted. We recommend that DCMS works with HM Treasury to identify organisations within the professional sport sector that remain unable to generate revenue until mass gatherings are permitted again, and to ensure that the systems that have helped them survive the crisis thus far, such as the Coronavirus Job Retention Scheme and the VAT and PAYE deferral period, are extended beyond the current cut-off dates, and backdated where they have already come to an end (such as the VAT payments deferral scheme).
Paragraph Reference:
22
Government Response
Acknowledged
HM Government
Acknowledged
. The Covid-19 pandemic has presented a significant challenge to many of DCMS’ sectors including sport and we understand that pausing the planned 1 October changes for a return of socially distanced crowds at sporting events will be disappointing for fans and sports alike. This decision has been taken due to the sharp upward trajectory of Covid-19 cases and as set out in the roadmap, the reopening of sports stadiums can only happen if it is safe. 4 Impact of Covid-19 on DCMS sectors: Government Response We know that the decision not to reopen stadiums to spectators on 1 October will have major consequences for sports and clubs across the country who relied on those fans for income. Specifically, we know the largest and most urgent concerns are around the major winter spectator sports: football, rugby union and horse racing. On football, the Government recognised the immediate pressure National League clubs were under, so provided assurance of financial support so they could start their season this weekend. We are in the process of finalising a grant package given the impact of essential revenue lost from having to play games behind closed doors due to the Coronavirus. The source of local history, identity and pride so we are committed to play resuming in these historic leagues in a viable way. Constructive discussions are happening between the PL and EFL on support for clubs within the pyramid. loan support to protect both the Rugby Football Union and professional clubs, and are continuing to work with the British Horseracing Authority on how best to support horse racing. The Government requested data on the financial position of major sports, and we are now working through the initial returns from all the remaining sports and are engaging with them at pace to fully assess how much they need to survive this period with no spectators. thinking that might allow spectators to return. This includes the creation of a new Sports Technology Innovation Working Group of sporting bodies and health experts to analyse new technologies which might support this. In addition to the £210 million Emergency Sport Funding Package made available via Sport England (7,569 awards to date), many sporting organisations have benefited from the unprecedented support for business and workers to protect them against the economic emergency including: • The Coronavirus Job Retention Scheme.1 68% of sport businesses able to apply have received this support. • £330 billion worth of government backed and guaranteed loans to support businesses. 18% of sports businesses have received a bounce back loan and 6% have received a loan through the Coronavirus Business Interruption Loan Scheme. • The Self-Employed Income Support Scheme—72% of self employed individuals in sport have received support. Delivering his Summer Economic Update in Parliament, the Chancellor announced a package of measures to support jobs in every part of the country, give businesses the confidence to retain and hire, and provide people with the tools they need to get better jobs. This will include: • A job retention bonus (one off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021) 1 All data taken from the 2nd Wave of the DCMS Business Survey which ran from 17 August to 8 September. Impact of Covid-19 on DCMS sectors: Government Response 5 • A new £2 billion Kickstart Scheme to create hundreds of thousands of new, fully subsidised jobs for young people across the country