The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)

My Lords, I am very pleased to respond to this QSD. I thank my noble friend Lord Mann for securing this debate and opening it—because it gives me an opportunity to talk about football, which is never a bad thing as far as I am concerned, but also because it is an important issue. I thank all noble Lords for their contributions. My noble friend Lord Mann raises an interesting Question. Sports clubs have not been given special enterprise zone status. Enterprise zones were not designed as a designation for individual organisations; rather, they were place-based interventions, intended to support economic growth and regeneration within defined geographic areas. However, my noble friend’s Question raises a broader and important issue: the contribution that sporting institutions can make to economic growth, regeneration and community development, and I do not think we should ever underestimate that. According to DCMS’s Sport Satellite Account, published in September 2024, the sports sector contributed an estimated £53.6 billion direct to the UK economy in 2021, equivalent to 2.6% of total UK gross value added. That is a fantastic contribution which demonstrates the significance of the role that sport plays as an economic sector in its own right. Professional football has a particularly strong relationship with place. Unlike many other major economic sectors, football clubs and stadiums are distributed across cities and towns across the country. Clubs can support employment, local businesses, visitor spending and investment, while stadiums can provide a focal point for wider regeneration. That sits at the heart of what my noble friend Lord Mann is discussing. That important contribution is here, both for the opportunities it provides and for volunteering, participation and community cohesion. Sport makes that important contribution right across the United Kingdom. I have seen this close at hand in my own area. My noble friend Lord Bassam has already kindly mentioned my own football team. If he made himself Lord Bassam of Brighton and Hove Albion, that would be probably a first in your Lordships’ House. I am lucky enough that my team and my town share the same name, so I can have both designations in my title. My football club makes an enormous contribution to our community, across all ages, from youth football to walking football, and across our community, through social events. It has opened a nursery, and recently an all-weather training facility. During Covid, our club played an absolutely key role at the heart of our community. The first-team players took lunches to our older residents, which brightened people’s days so much. It plays a key role. The government position today is that sports clubs have an important role to play in supporting growth, but the most effective approach is to integrate sporting assets within broader plans for regeneration and local economic development. The Government are already acting on the opportunity presented by stadium-led regeneration. The Prime Minister has reaffirmed his commitment to a stadium regeneration accelerator, through which the Minister for Growth and the Minister for Sport will work with mayors to help major sports-led projects bring jobs, investment and housing to local areas. The accelerator is bringing together government departments, local leaders, sporting bodies and investors around viable projects, helping to identify and address barriers to delivery. It is not a capital fund for stadium construction; stadium redevelopment is led and funded by clubs and private investors, while the Government use their convening role to help realise the wider benefits for places. As the noble Lord, Lord Mann, pointed out, Leeds illustrates the scale of the opportunity here. The expansion of Elland Road is being taken forward by Leeds United, while the Government and local and regional partners are working to support the wider regeneration potential around the stadium. This approach recognises that major sporting assets can act as anchors for regeneration and place-making. It also reflects the Government’s wider local growth agenda, which seeks to empower local leaders and support regeneration that responds to the needs and ambitions of individual places. In some places, mayoral development corporations can complement this work by co-ordinating planning, land assembly and infrastructure delivery across complex regeneration areas. The appropriate model will depend on local circumstances and must support a broader plan for the place, rather than simply the commercial interests of an individual club. That does not mean that football clubs and other stakeholders are not key players with mayors and local councillors in driving that regeneration forward. Alongside support for regeneration and growth—I know that the noble Lord, Lord Addington, is particularly interested in grass-roots sport—the Government continue to invest in grass-roots sport and community facilities. At least £400 million will be invested in new and upgraded grass-roots sports facilities over the next four years, while Sport England invests more than £250 million each year through Exchequer and National Lottery funding to support participation and to tackle inactivity in communities across the country. There are also forms of support available to many community sports organisations through existing tax, business rates and funding arrangements. Community amateur sports clubs that meet the relevant eligibility criteria can benefit from charitable rate relief providing 80% relief on their business rates bill, and sports clubs may be eligible for the lower retail, hospitality and leisure multipliers where they are open to visiting members of the public—this probably answers the question from the noble Baroness, Lady Bloomfield. I know that the noble Baroness will not expect me to comment specifically on any Budget proposals that are coming forward—she would not have done that when she was a Minister either—but we are already undertaking a lot to support sport, including the new, permanently lower multiplier for eligible retail, hospitality and leisure properties, and the wider support package with a budget of £4.3 million. The small business retail, hospitality and leisure multiplier is set at 38.2p in 2026-27, 5p below the national small business multiplier, and the standard RHL multiplier is set at 43p, 5p below the national standard multiplier. They are also eligible for the other benefits that I spoke about earlier. I also wish to challenge the issue around NICs again, as I have had to do many times. The NICs rise does not apply to young people. Businesses, whether sport businesses or others, do not need to pay the additional charges on NICs for young people who are employed. The noble Baroness, Lady Bloomfield, and the noble Lords, Lord Mann and Lord Addington, referred to the lessons the Government have learned from previous enterprise zones and how these have informed current local growth policies. It is important to say that the experience of enterprise zones has directly informed what we are doing in government around newer special economic zone programmes. The noble Lord, Lord Bassam, mentioned freeports and investment zones; they have all been informed by the enterprise zone experience. Officials identified five factors as critical to success in any such zone: a clear strategic sector focus; a compelling value proposition for investors, including infrastructure and skills; strong local governance; genuine integration with the surrounding local economy; and co-ordinated investment promotion. These were all built into the freeports model. To address displacement directly, freeport tax reliefs apply only to new investment, and business rates relief can be subject to a displacement test—a direct response to the evidence from enterprise zones. It was felt that enterprise zones were often just moving people locally, not bringing in investment from outside. Freeports and investment zones have been brought together as industrial strategy zones now, offering potential investors a more streamlined and coherent package. I hope that answers Members’ questions. Mayoral development corporations are developing all the time, and they can enable mayors to use significant private sector investment in world-class sports facilities to unlock that wider regeneration potential, including housing, jobs and facilities for local residents and communities, utilising powers such as planning, CPO and infrastructure provision. I probably should not mention Manchester at the moment—I think Manchester United is having a bit of a tough time, so I will not step on any toes there—but there is a big project in Manchester, and the Old Trafford Regeneration Mayoral Development Corporation is acting as a driving force. The noble Lord, Lord Bassam, referred to planning. The steps we have taken both through the revised NPPF and the Planning and Infrastructure Act—which we recently took through the House to introduce a clearer, rules-based process for planning—will help with some of this regeneration, whether it is for football grounds or any other sports facility. In closing, I thank everyone in the Committee for their very important contributions to this debate. Our thinking is emerging on this, so I have listened with interest to what all noble Peers have had to say.