WITHIN THE BUDGET

How will the autumn budget impact on the sport and physical activity sector? We asked sector leaders for their comments

Lisa Wainwright MBE

Chancellor Rachel Reeves revealed her Autumn Budget on Wednesday 26 November. The emphasis was on economic recovery, focusing on raising tax revenue to create “fiscal headroom”. While the headlines were dominated by the budget’s combination of tax freezes and spending commitments – such as removing the two-child limit on Universal Credit – there were some items that will have a direct effect on sports and physical activity. The main one was the confirmation that the government will commit more than £900m directly in sport, of which half will be spent on grassroots facilities, while the other half will be invested in developing major international events (like the UEFA EURO 2028 and Tour de France Grand Départs in 2027). Elsewhere, there was a commitment to spend £20m on constructing a “sports quarter” in Peterborough and allocating £18 million over two years to improve up to 200 playgrounds across England. There could also be an indirect impact on sports sponsorship, as the sports betting duty will rise from 15 per cent to 25 per cent and online gaming duty from 21 per cent to 40 per cent. Curiously, horse racing, however, has been spared any tax increases.

There wasn’t, however, much to go on when it comes to the physical activity sector’s long-term goal of playing a key role in the government’s plans to create a preventative healthcare system. We asked sports industry leaders for their views on the budget and its impact – or lack of – on the sector.

Higher bills threaten clubs’ viability and could reduce access to sport and recreation

Lisa Wainwright MBE

CEO, Sports and Recreation Alliance

We are disappointed that the Chancellor has not heeded our call for sport and recreation premises to be exempt from the new higher-rate multiplier. We are concerned this will add further cost to sport and recreation facilities at a time when margins are already tight. This is something we have consistently raised with the Government in the lead up to today’s announcement.

We are also concerned about the potential impact of new higher property valuations on bills for smaller grassroot sport and recreation clubs and facilities. Higher bills threaten clubs’ viability and could reduce access to sport and recreation.

However, we welcome the Chancellor’s commitment to introduce support to help organisations transition to the new arrangements, something the Sport and Recreation Alliance also called for in advance of the Budget.

Sport and recreation has a huge role to play in helping the Government meets it stated missions. We will continue to work with Government and our members to ensure the tax regime works to support grassroots sport and recreation and the enormous economic and social value it delivers.

Ali Oliver MBE

CEO, Youth Sport Trust

At a time when young people are increasingly sedentary and have fewer opportunities for play, we are pleased the Government is providing investment to support 200 playgrounds across England. Giving children places and spaces in their communities where they can play and have fun is vital to help more children achieve the recommended 60 minutes a day of PE, sport and play, enabling them to unlock the benefits associated with an active start in life. “With a generation of children and young people facing a myriad of challenges, targeted action to improve skills, opportunities and readiness for the workplace is welcome. The Set for Success programme demonstrates how key life skills including confidence, communication and resilience can be developed through sport, and we encourage the Chancellor and her colleagues to take onboard learnings from programmes delivering impact, especially in reaching those young people otherwise at risk of not achieving their full potential, when developing a vision for this generation’s futures.

We know many will have concerns about the future of the Primary PE and Sport Premium

“Meanwhile in our sector, whilst there is much positivity about the future PE and School Sport Partnerships Network announced by the Prime Minister earlier in the year, we know many will have concerns about the future of the Primary PE and Sport Premium, and funding for the School Games Organisers Network. Whilst further information was not expected in the announcement, we hope the Government will continue working closely with key organisations to bring clarity and build on momentum from the Government’s response to the Curriculum and Assessment Review to deliver a new era where every child can access the life- changing benefits of play and sport.

Huw Edwards

CEO, ukactive

In her budget, the Chancellor repeated the Government’s ambitions to take pressure off the NHS and grow the economy, but to achieve these it must go further in supporting the physical activity sector to play its fullest role. Ahead of the Budget, ukactive urged the Chancellor not to pile further pressure on our sector and damage its growth by increasing taxes on our members. We therefore welcome the response to reform business rates with a permanently lower multiplier for leisure, retail and hospitality, as well as the decision not to introduce other major tax rises.

However, the cost increases announced across employment, pensions and smaller taxes will be detrimental for many organisations already enduring high operating costs in an ever increasingly complex tax system. This is particularly concerning given the high number of young people employed by our sector and the role our services play in reducing health inequalities.

The Budget represents an overall missed opportunity

This Budget falls short of backing our sector and recognising its important role in achieving the Government’s stated ambitions of cutting NHS waiting lists and growing the economy.

Given the importance of physical activity for our national health and economic renewal, the Budget represents an overall missed opportunity to provide a clear plan with pro-growth measures that leverage the expertise and influence of our members to help deliver results.

The Government must now work with ukactive and our members to co-create the sector plan for investment, growth and renewal that our nation deserves.

Racing has been part of the British way of life for hundreds of years

Brant Dunshea

Acting CEO, British Horseracing Association

Racing’s betting tax rate remaining at 15% is a welcome outcome and demonstrates that the Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset – culturally, socially and economically. Betting on racing is an integral part of the enjoyment of our sport, and maintaining the rate of horserace betting duties is an important step by the Government to help preserve revenue streams and protect the 85,000 jobs supported by racing across the country.

Racing has been part of the British way of life for hundreds of years. It binds our communities together in shared experience, it brings joy to millions. It puts the country on the world stage. It is right that the Government has understood this and acted accordingly. At the same time, we recognise that the increase in general taxation on the betting industry may have trickle-down effects on racing. We will work with our partners in the betting industry to understand the implications of this, and how we can work together to ensure that British horseracing continues to thrive.