Chancellor Rachel Reeves risks cutting off the UK’s pipeline of sporting talent with reform of business rates in the Autumn Budget, industry leaders have told City AM.
In a wide-ranging survey of governing bodies and other stakeholders across the sector, expected changes to business rates due to be announced by Reeves tomorrow and take effect in April are among the main concerns.
The Sport and Recreation Alliance, which represents dozens of national governing bodies including the Rugby Football Union and Lawn Tennis Association, warned that any additional financial burden on sports organisations could effectively price out the next generation.
“Reforms to business rates could have a substantial financial impact across the sport and recreation sector, from grassroots clubs to larger sporting facilities,” said CEO Lisa Wainwright.
“We’re calling on the Chancellor to provide the maximum relief for Retail, Hospitality and Leisure properties with a rateable value under £500,000 and, crucially, to exempt sport and recreation facilities from the new higher-rate multiplier.
“These facilities deliver significant economic and social value and help foster the future stars of British sport. But many are already operating under tight margins. Adding further costs will inevitably reduce access and limit opportunities for people to be active.”
How business rates may affect sports clubs
Economic modelling shows that expected changes in the Budget could increase costs for community sports organisations by 50 per cent, meaning hundreds of pounds of extra costs a year for small facilities and tens of thousands for larger ones such as stadiums. Adjustments to rateable values in April next year could mean bills rise by even more.
Glamorgan Cricket chairman Mark Rhydderch-Roberts also highlighted the dangers to grassroots sport caused by changes to business rates.
“For many clubs, business rates are one of the largest fixed costs. Extending or enhancing relief would free up funds that can immediately be reinvested into coaching and facilities,” he said.
“Many clubs rely on local-authority partnerships for facilities, grounds maintenance, or joint programmes. If councils face further constraints, it often translates into higher pitch-hire costs or reduced access.”
Business rates are high on the agenda in professional football too, with Lincoln City chief executive Liam Scully adding: “Measures that disproportionately affect employers or increase venue-related costs, such as changes to business rates, energy levies or employer tax burdens, limit our ability to invest in areas that matter within our sport: player development, infrastructure and community programmes.”