HC Deb 10 May 2001 vol 368 cc256-8
9. Mr. Brian White (Milton Keynes, North-East)

When he will introduce VAT relief for community sports clubs. [159885]

11. Mr. Andrew Reed (Loughborough)

What estimate he has made of the benefit to community and amateur sports clubs of his Budget proposals for tax relief. [159888]

The Paymaster General (Dawn Primarolo)

The Government announced in the 2001 Budget their intention to consult on possible support through the tax system for community amateur sports clubs, which we recognise play a positive role in promoting health and cohesion in their communities. We intend over coming months to consult key organisations from the sports and voluntary sector, and to draw up a detailed proposal, which will be published for final consultation this year before the Government take it forward.

Mr. White

I thank my hon. Friend for that response, but will she take into account during the consultation the fact that many clubs have had to take up the slack as a result of the Tories flogging off school playing fields, and have had to spend more on providing sports facilities for young people?

Dawn Primarolo

The answer is yes. That issue will be taken into account, because we recognise the valuable contribution that such organisations make.

Mr. Reed

I am delighted that the Government have taken up my ten-minute Bill and I hope that, as soon as possible, I shall be able to see it proceed through its final stages in the next Parliament.

Does my hon. Friend agree that it is vital for sports clubs to benefit from the relief because they offer young people the opportunity to participate? The issue is not just about sport; it is about health, education and crime. The proposal is a prime example of joined-up thinking. It will ensure that people benefit from Government policy and shows the important role that sport plays.

Dawn Primarolo

I congratulate my hon. Friend on his ten-minute Bill and on his ability to influence the Government and to represent his constituents so well in the House—long may that continue. He will know that the Treasury and Customs and Excise are working with the Department for Culture, Media and Sport for precisely the reasons that he identified. Unfortunately, this is a complicated area of the tax system because of the various structures of sports clubs. However, we intend to take the measure forward and I hope that, when he sees the final proposals, he will be encouraged to continue to press the Government on such matters.

Mr. Graham Brady (Altrincham and Sale, West)

Does the Paymaster General not understand that hundreds of thousands of pensioners will take a dim view if the Government extend relief for VAT to community sports clubs at the same time as they impose a new stealth tax of VAT on pensioners living in care homes? The Chancellor is so ashamed of that stealth tax that he would not reply to the question that my right hon. Friend the Member for Wokingham (Mr. Redwood) asked about it.

Dawn Primarolo

It is a shame that the hon. Gentleman seems to be declaring that the Conservative party will oppose the Government when we introduce any reliefs for community and amateur sports clubs. On his allegation about VAT changes with regard to pensioners, I point out that there are no VAT changes—and I hope that he heard that. There will be no change in the proposals that are currently operational with regard to these services.

Mr. Bob Russell (Colchester)

Although the Paymaster General's announcement is to be welcomed, does she agree that there is still a long way to go before the Government put back into sport and community organisations the large amount of tax that they take from them?

Dawn Primarolo

No, I do not agree with the hon. Gentleman. The Government have a fine record in supporting sports and community activities. The review that was carried out on the taxation of charities showed our commitment to supporting voluntary and charitable organisations. Clearly, the review of reliefs for amateur sports and community clubs adds to the contribution. He was quite wrong in his assertion.