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Written Evidence Submitted by the Sport and Recreation Alliance

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Written Evidence Submitted by the Sport and Recreation Alliance Written evidence submitted by the Sport and Recreation Alliance 1. Introduction 1.1 – The Sport and Recreation Alliance The Sport and Recreation Alliance is the umbrella organisation for the governing and representative bodies of sport and recreation. We have a diverse membership of more than 300 national and local organisations across the sector.1 As the voice of the sector, the Alliance works with government, policy makers and the media to make sure grassroots sport and recreation grows and thrives. Having an active nation is important as it delivers huge benefits to society and the millions of participants, volunteers, staff and spectators who participate in it. The Committee’s inquiry covers three areas and we will be looking to comment on all three. However, given the nature of the Alliance and its membership the bulk of our comments will focus on the current state of grassroots sport and physical activity and what the future is likely to be for our clubs up and down the country. The Alliance is working on pulling together more full evidence on the future of sport and physical activity and would appreciate the chance to furnish the committee in an oral evidence session. 1.2 - Summary of Key Points Grassroots sport and physical activity faces huge challenges as a result of the pandemic. Clubs are facing huge shortfalls in their finances and a consequent drop off in activity has seen grassroots sport in many cases looking at a crisis of existence. Furthermore, facilities being closed has led to far few people being physically active, which poses a threat to long-term participation and subsequently to both the mental and physical health of people across the UK. The government must facilitate a scenario in which the sport and physical activity sector can survive and build back better. This would be best done through a Sports Recovery Fund akin to that created through the Culture Recovery Fund. This would include money to ensure that facilities can open and continue operationally in the coming months and protect those elements of grassroots community sport at risk of permanent loss. In addition to a dedicated Sports Recovery Fund, government should look at using a range of broader policy levers to support the sector including: VAT reduction to 5% in line with that awarded to the hospitality sector Introduction of a mechanism to ensure a fair return to sport from gambling Reforms to tax and giving rules and the CASC scheme to broaden its appeal and impact. Further reforms to the system of Business Rates to support community clubs. 1 A full list of our members is included in Appendix A. 2. Are current sports governance models fit for purpose? While we recognise that there remains room for improvement in sports governance, we believe significant steps have been taken in recent years to address many of the most pressing problems. The introduction of the Code for Sports Governance has been a significant factor. Following the Code’s introduction in 2016, all funded governing bodies are compliant meaning the board is the ultimate decision-making body, directors have term limits, the board size must be restricted to a maximum of 12, all organisations have at least 30% of each gender on the board and at least 25% of directors must be independent. Likewise, the Alliance’s own Principles of Good Governance and provision of tailored support to the sector continues to drive improvement, particularly amongst the broader community of sport and recreation organisations which do not benefit from public funding and which are therefore not required to comply with the Code for Sports Governance.2 The Alliance’s study of the impact of both the Code and the Principles demonstrates that the sector has embraced the governance challenge and is now on a much more sustainable path.3 However, we recognise there is still much to be done – particularly with respect to equality, diversity and inclusion – and welcome the recent announcement by Sport and England and UK Sport to further review the requirements of Code in these areas.4 3. What are the biggest risks to the long-term viability of grassroots sport? While the sector was able to re-open slowly from late May, not all facilities have done so and participation remains lower than pre-pandemic levels. Figures from Sport England reveal that the number of adults doing five days per week of exercise has fallen by 9% since March from 33% to 24%.5 These drops in activity are particularly prevalent among women, black, Asian and minority ethnic people, those from lower socio-economic backgrounds and disabled people. While we are still in the middle of the current lockdown, it is hard to tell what the precise long-term effect on the sector’s finances and participation will be but the complete cessation of grassroots sport and physical activity again in November will likely have a profound effect beyond what can be evidenced here. However, following on from our evidence in the Spring, we have included some updates on the current status of the sector: The sector is effectively unable to operate at present and in view of the likelihood of ongoing restrictions, the government should be clearer about the trade-offs between suppressing the virus and keeping venues open and people active. 2 Sport and Recreation Alliance 3 Sport and Recreation Alliance, Committing to Good Governance, - http://sramedia.s3.amazonaws.com/media/documents/49e5977e-1ce2-4653-897c-5ecbcd9a2e77.pdf - 12/11/2020 4 https://www.sportengland.org/news/joint-review-code-sports-governance 5 Sport England - Source Following the Spring lockdown the sector was able to reopen slowly from May with outdoor sports like golf and tennis being among the first activities permitted again. Some areas of the sector however, were harder hit with gyms, leisure centres and swimming pools remaining closed into July. Indeed, some 200 swimming pools were unable to reopen at all between the spring lockdown and the November lockdown and remain closed6. Those that were able to reopen had to do so with social distancing and other extra Covid-19 protocols in place and the changing nature of the virus and of the government’s response to it means that sports organisations have had to adapt often at short notice and with increased expense in order to make venues and activities COVID secure. It is likely that these additional COVID-related costs are likely to persist until such time as the virus is able to be controlled through other means e.g. vaccination. Communicating and understanding these changes has proved difficult and the tiered approach in particular created confusion, notably where sports facilities in some Tier 3 areas were allowed to remain open while in other Tier 3 areas they were forced to close. The November lockdown has seen the sector shutdown completely at the grassroots level again. This is despite campaigns from sports including golf and tennis to stay open as they felt they could operate in a COVID secure way. Given the likelihood of continued restrictions for some time to come and the possibility that some venues and organisations may cease to operate completely, the government must be clearer about how it is trading off measures to suppress the virus against the short- and long-term impact on organisations within the sector and the health and wellbeing of the population more broadly. The financial impact of the current restrictions remains severe and is being felt at all levels of the sporting pyramid As sport was slowly allowed to return, the increased costs of making venues COVID secure and the drop off in revenue caused by a lack of normal capacity due to social distancing in many cases entrenched the financial difficulties already faced from three months of closure. Many organisations and clubs were not able to replenish revenues fully and, in some cases, did not have the finances to be able to open securely. The impact on elite sport means that less money will be available for reinvestment into the lower pyramid of sport. Some of the country’s largest governing bodies reinvest over 30% of their net broadcast income into the grassroots under the Alliance’s Voluntary Code on Broadcasting.7 In the most recent year, reinvestment under the Code totalled £163m.8 While we have subsequently seen broadcast elite sport return, the financial impact in terms of reduced broadcast, ticketing and commercial income has been severe and it is clear that maintaining reinvestment at these levels will almost certainly not be possible in the coming years. 6 Swim England, ‘New Community Sport Inquiry, but financial support is ‘swiftly needed.’’ - https://www.swimming.org/swimengland/new-inquiry-welcomed/ - 12/11/2020. 7 https://www.sportandrecreation.org.uk/policy/campaigns-initiatives/broadcasting-of-major-sporting-events-the- vol 8 https://www.sportandrecreation.org.uk/news/grassroots/uk-sports-bodies-reinvest-163m-from-broadcast Finally, from a workforce perspective the sector supports almost 100,000 self-employed workers, many of whom coach, teach and instruct and whose livelihoods are now in jeopardy.9 With reduced capacity, participation and the lack of available venues, many have been unable to earn a regular income and research by CIMSPA shows that 60% have no financial reserves and face substantial losses.10 These impacts will be exacerbated given that government support for the self-employed is limited. In the wider workforce too, 39% staff were furloughed at some point with a further 20% having their hours reduced.11 A number of major sports governing bodies have already announced plans to reduce staff and restructure their operations which will have long-term implications for their respective sports.
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