Amateur Sports Clubs (Hansard, 20 March 2002)

§ Baroness Anelay of St Johns
asked Her Majesty's Government:
Whether they intend to confer charitable status on amateur sports clubs.

§ The Minister of State, Department for Culture, Media and Sport (Baroness Blackstone)
My Lords, it is for the Charity Commission to decide whether amateur sports clubs may successfully apply for charitable status under the revised criteria that were announced last November.
1348 The Government's proper role is to ensure that clubs that may consider applying have access to clear guidance and advice. The Minister for Sport is working to that end with the Charity Commission, Sport England and other interested parties.

§ Baroness Anelay of St Johns
My Lords, I thank the Minister for that Answer. Is she aware that the vast majority of sports clubs would be dismayed at being able to go down only the charity route? Even the Charity Commission has made it clear that, in addition to the administrative burden, only about 5 per cent of clubs would qualify. Is the Minister also aware that the vast majority of clubs would much prefer the policy published by the Treasury last November; namely, a tax relief package, including 80 per cent mandatory rate relief? Will the Government reconsider that issue?

§ Baroness Blackstone
My Lords, the Government are aware that some amateur sports clubs would prefer a new tax regime to charitable status. However, if clubs seek charitable status and are designated as charities, they will benefit from 80 per cent mandatory business rate relief, as well as other smaller benefits. It would be a pity if amateur sports clubs did not take up that option, when it becomes available, and I would encourage them all to do so. The benefits would be substantial.

§ Lord Greenway
My Lords, does the Minister agree that charitable status is not a real option, in view of the complexities of the process? A great many yacht clubs could be involved in the process, and the adoption of the CASC tax relief scheme would discriminate against the larger clubs, which, arguably, are of more benefit to their local community. It would discourage them from growing and developing, in stark contrast to the encouragement given by the Ministers for health, education and sport.

§ Baroness Blackstone
My Lords, I do not know that there would be a particular problem for yachting clubs. To obtain charitable status, amateur sports clubs must have open membership, must be organised on a permanent, non-commercial basis and must have as their primary purpose the promotion of participation in an activity that promotes healthy recreation.
The procedure for obtaining charitable status will not be as difficult as has been suggested. My right honourable friend the Minister for Sport is working with the Charity Commissioners to devise a relatively simple procedure for amateur sports clubs that make an application. The Charity Commissioners are committed to trying to process applications quickly. Once that is done, the clubs concerned should have no difficulty in obtaining the benefits.

§ Lord Phillips of Sudbury
My Lords, in pursuing the answer that she has just given, can the Minister say whether it is likely that extra resources will be made available for that purpose? The number of community amateur sports clubs that may seek charitable status if 1349 they are forced down that route will run to tens of thousands. There is serious concern that the delay and obfuscation that might result from that deluge of applications could impede the registration process and, generally, be expensive and time-consuming for small clubs.

§ Baroness Blackstone
My Lords, extra resources will be provided, so that clear, simple guidance is available to the smaller amateur sports clubs that wish to seek charitable status on how to go about doing so.

§ Lord Moynihan
My Lords, pursuant to the Minister's Answer, do the Government agree with the policy objective of parity with charity for all voluntary sports organisations?

§ Baroness Blackstone
My Lords, I am not sure that I entirely understand the basis of that question, unless it is about whether clubs involved in activities for which the criterion of healthy recreation may be more difficult to demonstrate may be left out. That may be behind the noble Lord's question.
The Performance and Innovation Unit is considering the case for sport becoming a charitable purpose in its own right. That review will be completed before the summer. The PIU is addressing that central issue.

§ Lord Addington
My Lords, can the Minister assure the House that the ability of amateur sports clubs to work effectively and to function competitively, even if on a comparatively low level, will not be impeded by the introduction of any criteria attached to acquiring charitable status?

§ Baroness Blackstone
My Lords, yes, I can give the House that assurance.