§ I now turn to football. The tragedies at Bradford and Hillsborough football grounds shocked us all. The report by Lord Justice Taylor made recommendations to improve comfort and safety in our football league grounds over the next 10 years.
§ Implementing the programme of work envisaged in the Taylor report will place a significant burden on football clubs, which many of them will find extremely hard to bear. For many are in a weak financial position, and only a handful are profitable. I recognise this problem, but I believe there is an acceptable way to overcome it. The first priority is to ensure that vital improvements in safety and comfort can be made, and the second is to avert what would otherwise be the closure of many of our grounds. If we help football now, I am confident that football will itself contribute to the improvements in facilities that are necessary.
§ Let me say first that much of the expenditure required to meet the Taylor recommendations is eligible for capital allowances or for full offset against tax. I know that there has been some confusion about this, and I have asked the Inland Revenue to provide urgent guidance to clarify the tax position.
§ However, tax allowances cannot help where there is no profit to set costs against. This is the case with many clubs. I have therefore reviewed the rate of pool betting duty—the tax which is paid by the pools companies on the stakes they receive. This currently stands at 42.5 per cent. I propose to reduce it to 40 per cent., on the clear understanding that the full amount saved is passed by the pools promoters to the Football Trust, and is used by it to improve the safety and comfort of fans at English and Scottish football league grounds.
§ I am confident that such an arrangement can be negotiated with the pools promoters and the football authorities. Provided that we do so, the duty will be reduced, in the first instance for five years. At the end of that period we shall review the position again. [HON. MEMBERS: "You will not."] At the end of that period, I will review the position again.
§ This reduction will yield around £100 million for football over five years. This is in addition to the £75 1022 million that the Football Trust has already said will be available over the next 10 years. These sums represent very large contributions towards making sure that football league clubs can implement the Taylor recommendations and bring their grounds up to the safety standards both we—and they—want to see. Millions of people watch football every year. With better and safer grounds, I hope that many more will join them.