Contribution
I thank the noble Lords, Lord Parkinson of Whitley Bay, Lord Markham and Lord Holmes of Richmond, for tabling the amendments in this group. I agree with the noble Lord, Lord Addington. We do not believe the amendments are required either.
Amendments 68, 72 and 73, tabled by the noble Lords, Lord Parkinson and Lord Markham, are intended to require parliamentary approval before financial assistance under Clause 25 can be given in relation to sporting events. This Government completely agree that scrutiny and transparency when it comes to public spending are vital. However, we do not believe that these amendments are necessary. First, for the avoidance of doubt, the funding power is not intended to lead to spending above and beyond what would have been provided anyway. Rather, it is a legal mechanism intended to ensure that any funding provided to sporting events has a clear statutory underpinning. This is in line with the principles set out in Managing Public Money.
Secondly, I want to be clear that this funding power is in line with established precedent for similar funding powers. Parliament already has responsibility to authorise government expenditure in this area through the supply estimates process, such as allocations for bidding for and staging major sporting events and legacy programmes.
These amendments, however, would go much further, effectively requiring the Government or devolved authorities to seek the approval of the relevant legislature every time they rely on this funding power, be it to fund a smaller-scale, grass-roots event or arts and culture programmes affiliated to sporting events. This has the potential to require parliamentary approval numerous times over the course of each year. To put this in perspective, over the past decade alone the UK secured and delivered almost 150 major sporting events, many with the support of government investment, and that is even before you count related activities. Once we add funding for domestic sporting events to the mix, the potential number of funding cases within scope goes up significantly.
I hope noble Lords understand therefore why the Government’s view is that these amendments are disproportionate and would place an unsustainable burden on Parliament. However, I assure noble Lords that, where financial assistance is provided by relying on this power, it will rightly remain subject to the same existing processes and ministerial accountability as any other spending of public money. Departments are required to produce robust business cases when spending public funds, in line with public Treasury guidance. Where funding needs are significant, this will also require a departmental spending review bid to His Majesty’s Treasury to be subject to even further scrutiny. There are a number of existing mechanisms which provide Parliament with additional ability to scrutinise such funding, including the Public Accounts Committee and the Culture, Media and Sport Committee, as well as committees in your Lordships’ House.
Amendment 71, tabled by the noble Lord, Lord Holmes of Richmond, would require organisers of major sporting events to publish, and commit to comply with, an environmental, social and governance impact compliance plan before funding can be provided where it exceeds £1 million in aggregate to a single recipient. As I hope I have already made clear, the Government are in full agreement with the point being made by the noble Lord, Lord Holmes that, where public money is given in support of a major sporting event, it should be used responsibly, secure value for money for the public purse, and ensure that benefits are shared with local communities. This is something the Government will be thinking about even before we consider funding a major sporting event.
As already noted, the Gold Framework is clear that, where event organisers are seeking government investment, they must demonstrate the social value of these events, including with regard to many of the criteria the noble Lord sets out. Among other expectations, it outlines that event organisers must have meaningful plans in place to generate this positive social impact even before the event has started. Where the Government do decide to support a major sporting event, this requires a robust business case proportionate to the expenditure, in alignment with Green Book and Managing Public Money guidance. These frameworks expect departments to consider environmental, social and distributional impacts, including those set out by the noble Lord, such as through the public sector equality duty and environmental principles policy statement assessments.
Finally, as has already been made clear, Clause 25 already sets out that event funding can be given where needed, subject to conditions. This could absolutely include conditions related to all these areas, where warranted. Furthermore, international federations and event owners often specify their own expectations and requirements with regard to the social and environmental impacts that prospective bidders would be required to meet. For instance, UK bids for World Athletics events are required to comprehensively integrate sustainability to align with the governing body’s mandatory Athletics for a Better World standard, with the Glasgow 2024 World Indoor Athletics Championships having secured a platinum rating, which is the highest rating possible under the standard. For these reasons, I ask the noble Lord, Lord Parkinson, to withdraw his amendment.