Rating: UBR and Sports Clubs (Hansard, 26 March 1990)

§ The Parliamentary Under-Secretary of State, Department of the Environment (Lord Hesketh)
My Lords, in 1990–91 the average rate bills for sports grounds, sports stadia, playing fields and club houses in England will increase by 2.5 per cent.

§ Lord Dean of Beswick:
My Lords, is the Minister aware that I am rather surprised at the figure of 2–5 per cent.? The Question on the Order Paper is broadly based, and I hope that he and other noble Lords will understand if at this point I restrict myself to the part which refers to amateur sports. If one takes a broad base of amateur sports, including rugby union, association football, bowls, tennis and athletics, is the Minister aware that the increase is a minimum of 200 per cent. and in some cases over 300 per cent.? Bearing in mind that the Government appear to be rethinking some of the sums that must be paid by people under both the unified business rate and the poll tax, will he ask his right honourable friend the Secretary of State whether in reviewing the other areas of concern regarding the new financial arrangements he will take on board some of the discrepancies that appear to have occurred with regard to sporting clubs in general?

§ Lord Hesketh
My Lords, the most substantial percentage increase on broad groupings— it is difficult to describe a grouping— concerns golf courses, swimming pools and tennis facilities, whose bills will rise on average by 20–5 per cent. For leisure and sports centres, the average increase will be 30 per cert. However, it is important to remember that local authorities will continue to have discretion to grant up to 100 per cent. rate relief on property occupied by non-profit-making bodies.

§ Lord Mackie of Benshie
My Lords, is the Minister aware that the rates on sports clubs in Scotland have been very much higher than those in England for many years past? In the light of recent developments in government thinking, does he propose to do anything about that now?

§ Lord Hesketh
My Lords, there are many differences between England and Scotland, which include the rating of sports facilities. In addition, Scotland has a different poundage to that in England, 566 which automatically leads to different levels of rate payable. It is the Government's policy to harmonise the system of rating of sports facilities, bringing Scotland into line with England and Wales. Progress is being made, but it is a complex issue.

§ Lord Mulley
My Lords, I welcome the fact that the Minister's right honourable friend the Chancellor of the Exchequer is finding money for the improvement of sports grounds. However, does he not think it a little odd that that is being done by way of remitting tax to one body in order that it should give it to another? Will he at least ask his right honourable friend whether should the negotiations with the pools promoters fail, they will find other means of paying the grant that they have in mind to improve football grounds?

§ Lord Hesketh
My Lords, I am grateful to the noble Lord for pointing out the tremendous contribution that my right honourable friend the Chancellor of the Exchequer will make to the improvement of football grounds due to the changes that he suggested in the Budget. Many of the revaluations have taken place because, as noble Lords will be aware, many football grounds have introduced highly successful commercial boxes. It is only right and proper that that should be reflected in the revaluation.

§ Lord Stallard
My Lords, given that some clubs will be hard hit by any further increases in expenditure, how long will they have to appeal against those revaluations?

§ Lord Hesketh
My Lords, clubs are in exactly the same position as any other building which is liable for the UBR.

§ Lord Graham of Edmonton
My Lords, does the Minister accept that there was a general welcome for the way in which football clubs have been assisted in order to enable them to put their grounds in order following the Taylor Report? However, one does not want to give with one hand and take away with the other. Like my noble friend Lord Dean, I was pleasantly surprised to be told how minimal the addition is likely to be under the unified business rate by comparison with the old rating system. Will the Minister at least inquire of such representative bodies as the CCPR, the Sports Council and the Football Association whether they are as concerned as we are at the likely impact on their ability to improve and extend sport following the introduction of the unified business rate?

§ Lord Hesketh
My Lords, the noble Lord raises a good question. The average rate bill for football grounds, including inflation but before transition, will fall by 11 per cent., which I am sure, as a keen football follower, he will be pleased about. I thought that the noble Lord might raise that point this afternoon, and I am pleased to report to him that the Spurs will be looking at a reduction from £ 137,000 to £ 87,000 before transitional relief.

§ Lord Hatch of Lusby
My Lords, the noble Lord has given the figure of 2.5 per cent. However, he no doubt recognises as well as the rest of us that it is an overall figure. Is he aware that there are many amateur sporting clubs of various kinds which will be in grave danger of going out of business because of the difference between the rates which they now pay and the new business rate? Do the Government intend to give any help or relief to such sports clubs?

§ Lord Hesketh
My Lords, all sports clubs are in exactly the same position as other UBR-payers. They will be in receipt of transitional relief if there is an upward revaluation.

§ Lord Dean of Beswick
My Lords, does the Minister know that I too am aware that under the new arrangements the local authority can give discretionary grant? However, does he agree that it is only a discretionary grant and the local authority, if it is very hard put to it, may not be able to give any grant at all? Will the Minister ask the Secretary of State, in the general review of the new financial arrangements, to consider the adverse effects that the new financial arrangements are having on sport in general but mainly at this point in time on amateur clubs, which may well go out of existence?

§ Lord Hesketh
My Lords, I shall be more than happy to receive any information that the noble Lord cares to give me concerning particular cases and draw them to the attention of my right honourable friend.