Football Governance Bill

Clive Betts Excerpts

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Lucy Frazer]

We believe that parachute payments have a role to play, although I know people have concerns about distortion. Under the Bill, if there is any issue relating to the finances of a particular club, particularly by reference to the parachute payments it might have received, the regulator has an ability to look at that within the licensing regime as a whole.

[Mr Clive Betts (Sheffield South East) (Lab)]

I have read the Bill, but I wonder whether the Secretary of State has read it. Under clause 55(2)(b), the regulator is not allowed to deal with

“revenue that the specified competition organiser distributes to a club by virtue of a team operated by the club being relegated from a competition organised by the specified competition organiser.”

In other words, parachute payments are deliberately excluded from the remit of the regulator. Why has that been done when it is one of the most distortive elements of the current arrangements?

[Lucy Frazer]

I have been very intimately involved in this Bill, having put together all the policy recommendations and had discussions with all the parties. I encourage the hon. Member to read all aspects of the Bill, not just the provisions in relation to the backstop, which he quoted. I know many Members feel that parachute payments are very important, so let me try to explain again.

I know that many stakeholders have concerns about the impact of parachute payments on financial stability, sustainability and resilience, and I know that parachute payments can play an important role in softening the financial blow of relegation at all levels of the football pyramid. Given the complexity of the issue, the regulator will need to undertake an holistic, evidence-based assessment of the system of financial distributions as part of its state of the game report, and this will include an assessment of parachute payments.

Parachute payments have been specifically excluded from the backstop mechanism to ensure that the two final proposals from the Premier League and the EFL are easily comparable. The impact of parachute payments on financial sustainability and resilience could be a relevant factor in both the decision to trigger the backstop and the final choice in relation to a proposal. More generally, the regulator can look at the impact of a parachute payment on a particular club when it comes to the licensing regime.

[Mr Betts]

Will the Secretary of State give way?

[Lucy Frazer]

I will press on, as I have now answered five times on parachute payments.

We will achieve our goal through the new licensing regime, under which all clubs in the top five tiers of English men’s football will need a licence to operate as professional football clubs. The regulator will have powers to monitor and enforce requirements on financial regulation, club ownership, fan engagement and club heritage protection, as well as setting a corporate governance code of practice and having the power to prohibit clubs from joining breakaway competitions.

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[Thangam Debbonaire]

My hon. Friend raises a really important point. It is so important that the state of the game report leads the way, and that the regulator is allowed to look at the evidence and have the scope to intervene where that is necessary. I fear that the Secretary of State may inadvertently have confused the issue in her earlier remarks, although I think she began to clarify it. I would be grateful if the Minister could further clarify it in his summing up, as there is some remaining confusion.

[Mr Betts]

I certainly think that if we do not sort this issue out today, we must at least have some time in Committee to try to untangle what clause 55 actually means. I thought the Secretary of State said that the parachute payments were in play in the discussions about distribution of funds within football until it gets to the backstop, when they are taken off the table. It is almost being said that if the Premier League does not reach an agreement with the EFL until the point of the backstop, the Premier League will in effect have a veto over parachute payments being changed. That is what is being said, and I think that position really needs to be changed when we are in Committee.

[Thangam Debbonaire]

I thank my hon. Friend for that intervention. Like other colleagues, he is so knowledgeable about the detail of this Bill. I urge the Government to consider what has been said in a constructive spirit. Everybody present wants to get to the bottom of this confusion. We want to make sure that football and the regulator have the tools they need to grow sustainability—a key word which the Government have themselves used. The confusion about parachute payments is worthy of further attention, because there is so much money involved. They also have the distorting effect that the Government’s White Paper rightly identified.

If we do not look at this issue, we risk distorted competition in the championship by encouraging greater financial risk taking by the clubs that do not receive those payments. We know that that can result in an over-reliance on owner funding, which again is simply not always sustainable. As my hon. Friends have mentioned, clause 55(2) excludes parachute payments from any order by the regulator on revenue distribution. I gently say to the Government that, as there seems to be some contradiction or possible confusion, we would like that cleared up. I would be grateful if the Minister could say more in his summing up about how the money currently used for parachute payments could make more impact and perhaps be shared more widely, whether he has examined that in detail and to what extent he feels the current terms of the Bill are satisfactory.

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[Mr Clive Betts (Sheffield South East) (Lab)]

First of all, we are here today because football has failed to regulate itself over many years. It is our job as parliamentarians to ensure that, in the end, we regulate on the behalf of football fans for now and for the future, and for the communities where our football clubs are based. That is our job. I will just begin by thanking those who have got us to this position: the hon. Member for Chatham and Aylesford (Dame Tracey Crouch), certainly; the Minister for sticking with it and bringing the Bill before the House today; and the EFL, the PFA, the Football Supporters’ Association and Fair Game for their advice. I even had a conversation with the Premier League, but let us say that that conversation did not lead to as much agreement as other conversations I have had with other football organisations.

This is not a Bill to destroy the Premier League, as some have tried to present it, including the Premier League itself. The Premier League has been a massively successful organisation. It has brought unimaginable wealth into football and into this country. The legislation is not here to destroy the Premier League, but to ensure that its great strength, its financial resources, can be used as a basis on which to strengthen the whole of the football pyramid. It is just a pity that the Premier League itself does not see it like that. It does not see its responsibility to the wider football game, but instead so often seems intent on narrowly focusing its attention on supporting the handful of clubs that are within the Premier League.

We just have to look at the other successful brand in English football: the pyramid. There is no other football pyramid like it in the world. The championship has the fifth-highest attendances of any league in Europe. Where else could you go on a Sunday afternoon to a second-tier relegation game and get 7,500 fans not in the home end but in the away end? Sheffield Wednesday did that at Blackburn on Sunday—and won, I hasten to add, giving ourselves hope of salvation. That is the strength there, but the incredible power of the Premier League’s resources is slowly beginning to corrode and erode the basis of the whole football pyramid. That is what we have to stop and what we have to act on.

In very simple figures, 25 clubs—not just the 20 clubs in the premier league, but the other five that are in and out of it on a regular basis—get 92% of the distributed resources within football. The other clubs in the EFL get 8%. That simply is not sustainable, and we have seen that gap grow and grow over the years. It is not just a static problem; it is an increasing problem that undermines the whole of the football pyramid.

Does the Bill, as it stands, deal with that fundamental challenge? The process for a review of football finance is far too bureaucratic. Why not give the regulator the up-front power to come to a decision about the distribution of football’s resources that makes individual clubs sustainable, and competition within and between the leagues sustainable? That is a simple remit. Let them get on with it, rather than going through this process right the way through to a backstop, knowing that the leagues have already had a chance to reach an agreement which they have signally failed to do. The Premier League never made a single offer right through the process from the very beginning.

With the parachute payments excluded from the backstop, the Minister risks destroying his own Bill. If the Bill remains as it stands, we will not achieve a sensible and appropriate redistribution of revenue. I think that has been said right across the House and we simply have to change it. I am happy to table an amendment in Committee. I hope the Minister might think about how the Government might accept such an amendment, because it will be needed to strengthen the Bill.

Is the distribution of resources simply a matter for the EFL and the Premier League, or do the fans, players and grassroots not have a view? Should there not be a wider process, at least a consultation, so that the regulator has the up-front power and also consults those groups in reaching a final conclusion? It is just strange that something that began with a fan-led review does not mention fans in that very important part.

I welcome the general approach of the licensing system. As has been pointed out, we have had too many bad owners and directors in football, and we still have some around.

[James Daly]

I am very interested in what the hon. Gentleman says. There are some very important points regarding redistribution, but there is also a very important point about the competent management of football clubs. The Derby County situation is an example, because the owner had £400 million in cleared funds when the club was bought. What happened to Derby was a result of how badly it was managed after the initial test. That is a real challenge for this Bill.

[Mr Betts]

My understanding is that it will be a test of the licensing system. It is about ensuring sustainability, and not just when an owner comes along and says they want to buy a club. They need to show that they can actually sustain that ownership going forward. That is the difference between the current rules and the rules that are being proposed, which we can test further in Committee.

Can the regulator really regulate sovereign wealth funds that own clubs? I have asked the Minister about that before, and it is something else that we have to look at, because it is a challenge to the system. I welcome the fact that fans will have a veto over their club changing its colours or name, but there is nothing in the Bill that says that fans have to be consulted about a change of grounds. The regulator has to approve it, but there is no right for fans to be consulted. We need to have a look at that.

I come back to my own club, Sheffield Wednesday—I have mentioned them once, and I will mention them again. They welcome the proposals and the EFL’s approach to the review, and they recognise the need for a change in the distribution of resources. I am not sure that the owner will be that enthusiastic about the change to require him to consult the fans properly. Many owners are like that—they want to go through the motions. Are they really going to engage in a meaningful way? That will be a real challenge for the regulator at a number of clubs. I understand why the form of consultation is not specified, but it will still be a challenge going forward and we need to keep an eye on it.

Finally, I come back to the FA cup. The Minister said it is not our job to get involved in football competitions, but the fan-led review was triggered by some clubs wanting to change the competition they play in by going to the European super league. That involved a handful of rich clubs deciding that they could be better off there. We now have a handful of rich clubs deciding that European games are more important than FA cup replays—that is what is happening.

When Arsenal won the FA cup in 1979, they had five replays, four of which were against Sheffield Wednesday in one round. I remember it all these years later, because it was a great achievement. Three of those replays were at the old Filbert Street ground. We remember those things as football fans, and we should not take them away from the game. I say to the Minister that one of the requirements of the regulator is to ensure that the heritage of English football is safeguarded. Will the regulator have the power to do that under the Bill’s rules, and is the FA cup and its replays not part of the heritage?

--- Later in debate ---

[Stuart Andrew]

My hon. Friend raises an interesting point. I have had dozens of meetings with the Premier League, but as far as I can recall, I do not think that it has raised carving out international broadcast revenue in those discussions, which have always revolved around the net media revenues and the aggregate revenue received by both the Premier League and the EFL; she raises a very interesting point.

Some say that the regulator should be able to trigger the backstop right at the outset. Frankly, that would just be a frontstop, and it may hinder a deal being struck by football itself, but the Bill provides that if there is no deal because one has not been offered or one side cannot sign it because it is not a good deal, that side can ask the regulator to trigger the backstop.

Members have mentioned parachute payments, and I am always happy to meet colleagues to discuss and look at that matter further, particularly in Committee. I am also happy to organise a briefing, if that would be helpful, because it is quite a complex issue. Parachute payments play an important role in the sustainability of the system by softening the financial blow of relegation, and removing them could have adverse effects. Look at Bradford City: when they were relegated from the premier league in 2001, there were no parachute payments, and the following season they went into administration.

[Mr Betts]

Will the Minister give way?

[Stuart Andrew]

I literally have two minutes. I have offered a briefing, and we can have this debate afterwards.

We realise that parachute payments can have a distortive impact, particularly in the championship, which is why the regulator has the power to address any structural or systemic issues through its licensing regime. Any distortion created by parachute payments also has the potential to be addressed through distribution to non-parachute payment clubs; that is exactly what the regulator will be able to look at as part of the backstop. Leading experts have advised us to keep the backstop targeted and simple, which we have done, and to design it so that it may never need to be triggered, which we have also done. As such, we do not think it is appropriate to include parachute payments in the backstop, nor we do think it is necessary to do so, as we have ensured that the regulator will be able to address any distortive effects that they cause via the licensing regime.

I am running out of time to answer more questions. This is a landmark Bill for football. It has been carefully designed to celebrate the sport’s success and encourage investment, but it is about providing stability for clubs, sustaining the pyramid and putting fans at the heart. We recognise that there are many successes, but it is important that we tackle the issues. The IFR will be focused on football, focused on financial stability and focused on fans.

I close by playing on the iconic words of 1966. Too many fans have seen their club on the brink, and they think it’s all over. Well, it’s not now.

Question put and agreed to.

Bill accordingly read a Second time.

Football Governance Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)), That the following provisions shall apply to the Football Governance Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 6 June 2024.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Joy Morrissey.)

Question agreed to.

Football Governance Bill (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Football Governance Bill, it is expedient to authorise the payment out of money provided by Parliament of any expenditure incurred under or by virtue of the Act by the Secretary of State.—(Stuart Andrew.)

Question agreed to.

Football Governance Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Football Governance Bill, it is expedient to authorise:

(1) the charging of a levy by the Independent Football Regulator in connection with the exercise of its functions under the Act; and

(2) the payment of sums into the Consolidated Fund.—(Stuart Andrew.)

Question agreed to.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 16th November 2023 Commons Chamber

[Stuart Andrew]

The hon. Lady raises an important point. Legacy is incredibly important to me. That is why we have been giving hundreds of millions of pounds to improve on and build new grassroots sports facilities, so that there are plenty of opportunities for people to enjoy the things they want to do that are inspired by tournaments just like Euro 2028.

[Mr Clive Betts (Sheffield South East) (Lab)]

This should be an opportunity for fans to celebrate and enjoy. I remember the 1996 Euros, when the Danish fans came to Sheffield and drank the city dry, without any problems or disorder whatsoever. Will the Minister give two commitments? First, will he engage with the Football Supporters’ Association in full planning for this? It needs to be involved because it has really good ideas and experience. Secondly, will he talk to the authorities about ticket pricing, so that those on low incomes, and particularly children, can get to the games and enjoy the events?

[Stuart Andrew]

I absolutely commit to engage with the Football Supporters’ Association. I also met fans ahead of the European championship finals in Istanbul this year. The hon. Gentleman is right, and there are lots of issues for us to discuss. We are in constant discussions with the likes of UEFA, for example, to which I will happily make those representations.

Football Regulation

Clive Betts Excerpts

Wednesday 8th November 2023 Commons Chamber

[Matt Rodda]

I thank the hon. Gentleman and I hope that the action the Government are proposing is brought forward and has the widest possible impact across the UK.

I take this opportunity to thank the thousands of local fans who have shown their support for a change of ownership of Reading FC, including the 1,400 people who joined a march from our town centre to the stadium a few days ago. It was an incredible show of support, and one that led to the unexpected closure of the A33 due to the huge numbers who took part. I thank all the drivers on the other side of the road—a two-lane trunk road—who hooted in support and cheered us on. I thank Reading FC legend Dave Kitson for leading the march and for his support for both the club and the campaign.

I thank our local council, including the council’s leader, Jason Brock, Councillor John Ennis, who has been a Reading fan since 1975, Councillor Adele Barnett-Ward and others. I thank John in particular, because he took part in a previous march in 1983 against Robert Maxwell’s ill-thought-through plan to merge Reading with Oxford United. I should add that John has been our lead councillor for transport for just four months and already he has shut a major road, which is not something that many councillors get to do.

I also thank my fellow Berkshire MPs, particularly the hon. Member for Bracknell (James Sunderland), the right hon. Member for Reading West (Sir Alok Sharma) and my hon. Friend the Member for Slough (Mr Dhesi). Sadly, the hon. Member for Bracknell cannot attend the debate due to illness, but he is a fan and hugely enjoyed the march. Despite the local political differences, he marched next to John and other seasoned campaigners and marchers from the Labour council—although, funnily enough, he seemed to feel more at home when the fans started chanting “Blue Army” as we walked down the road. I thank him, the Minister and colleagues from across the House for their support.

I turn now to the substance of the debate. It is clear to us all that there is an ownership problem in English football. I will use the debate to explain the terrible impact of that ownership problem on Reading and, by implication, on many clubs across the country, and to ask the Minister to reassure fans, players, staff and local communities. As I said earlier, I welcome the Government’s announcement that they plan to bring forward a Bill to regulate football. That is an important step.

I call on the Government to live up to that promise. Ministers must ensure that the Bill includes proper powers for the regulator and, crucially, that there is enough parliamentary time for the Bill in the last months before a general election. Above all, the Government need to show us that they have the determination to press forward with what they have promised. I know my hon. Friend the shadow Minister is willing to work with them, as are we MPs, fans and the whole football community. I hope the Minister will confirm that the Government are serious and will commit to them taking this vital work forward as a matter of urgency.

I will turn now to Reading football club. To put it clearly and simply, as loyal fans did on the march last week, we want our Reading back. The story of what is happening to our wonderful club is quite simply heartbreaking. It is terrible, and I could use much less parliamentary language—as was occasionally heard as we marched down the A33. The situation we face stands in stark contrast to the history and traditions of our great club.

Reading was founded in 1871, and it is one of the oldest clubs in English football. The fans, the players of the men’s and women’s teams, and the staff have all been badly let down. In men’s football, Reading has been a championship club, knocking on the doors of the premier league. It has enjoyed three seasons in the top flight. In fact, we were one place outside getting into Europe at the end of our first premier league season, in 2006-07. Fans have vivid memories of the nineties, the noughties and our most recent time in the premier league 10 years ago—the proudest possession of one of my children is a ball signed by the whole team from that heady time—under the wise leadership of brilliant managers such as Steve Coppell, who guided gifted players, many of whom were local and came up through the club’s academy, and the committed support of the then owner, Sir John Madejski, whom I thank for his wise stewardship of the club.

The club and the wider football community used to talk about “the Reading way”: developing and motivating players at a local family club, and achieving far more than others would have thought possible. That includes—I particularly like saying this—beating Watford 4-1 to win the Simod cup at Wembley; winning the championship a number of times, most recently in 2011; knocking on the door of the premier league in successive play-offs; and great FA cup runs, including sadly losing to Arsenal in the semi-final in 2015.

Crucially, the women’s team were also punching above their weight, and were a real success story. Until recently, they were playing in the women’s super league thanks to brilliant players and management, and were on the brink of doing something amazing. Sadly, that run of success has now ended.

The club was sold in 2013, and a succession of owners have presided over a worsening situation. Unfortunately, our men’s team is now languishing at the bottom of league one, through no fault of their own—16 points have been deducted from the club in the last few months for an array of financial mismanagement by the current owner, Chinese businessman Dai Yongge, not for anything that has happened on the pitch. That financial mismanagement includes Mr Yongge failing to pay wages and national insurance. His Majesty’s Revenue and Customs had lodged winding-up petitions before the NI was paid. Mr Yongge’s term as owner started well, with investment in players and the training ground, but sadly he seemed to lose interest. This may be a familiar story to others who follow the history of many of our clubs.

The effect of those points deductions has been absolutely appalling. Reading’s men’s team was relegated from the championship to league one at the end of last season, and further points deductions have left us at the very bottom of that league. To make matters worse, it now looks as if the club will be relegated again at the end of this season. That would leave us playing in league two. The owner has also pulled the funding for the women’s team, which made them unsustainable as a professional outfit—sadly, the players are no longer fully professional—and they too have been relegated.

Let me say a brief word about players, staff and fans. Quite simply, they are doing a determined job to remain positive in an extremely difficult and challenging situation that is not of their making. We are all extremely proud of them, and I pay tribute to them all. Young, less experienced players—the men’s team are the youngest in the league—who in some cases should still be in the academy or on the bench, are playing with grit and determination despite everything that has been thrown against them. Fans with families and busy jobs have come together to fight for our club in a community campaign that has made the national news. We are all very proud of them, and I want to say: “Come on you R’s!”

[Mr Clive Betts (Sheffield South East) (Lab)]

I apologise for being late to the debate—I was caught out by the earlier start. My hon. Friend is making a good point about the way in which football is often run by individuals who can, in the end, bring a whole club and its community down because of the way the club is managed. At Sheffield Wednesday, Dejphon Chansiri has put a lot of money into the club—great—but he has been saying recently that he may stop the funding, which is obviously a considerable threat. In the end, clubs are not just about the person who owns them, or the chairmen; they are about fans. Clubs belong to them, and they should have the right to be consulted right the way through on all those issues. We hope that the regulator, when it comes in, will have the powers to do precisely that.

[Matt Rodda]

My hon. Friend makes an excellent point, which I will address later in my speech. I hope the Minister will offer further detail about what he proposes, and I urge him to use his speech to give us some hope, some cheer, some optimism, and some fire in our bellies to help fight for the future of our beloved club.

The Government have announced a Bill to introduce a football regulator, which is welcome. That Bill has the potential to lead to real change in English football, but sadly it is not clear how far the Government will respond to fans’ concerns, and indeed to those of the football authorities. We are all concerned about owners, such as Dai Yongge, who seem to swoop in, hope to make money, and then lose interest if they are not successful. We are at a very early stage with the Bill, so I hope the Minister will be able to reassure us about the thrust of that Bill. I ask him to provide some detail on a number of key points.

For example, can the Minister spell out what the Government hope the Bill will achieve? Can he be clear about the powers he is considering for the regulator, and will he reassure fans that they will actually have a say? Will he also put an end to clubs being punished for the actions of irresponsible owners? In short, will he commit to doing what it takes to make sure that no more clubs and no more fans have to suffer what we have had to suffer?

Dai Yongge has announced that he plans to sell Reading. He made that announcement in October, and so far there appear to be three bidders who have shown an interest in the club. That means that the sale could go through before the Bill is passed, so is the Minister able to reassure me about the club’s immediate future? If the sale does go ahead, will he commit to Reading becoming a pilot for new regulation to protect the club, and indeed to other measures that may be necessary to offer support?

Mr Deputy Speaker, I thank you once again for allowing me to have this debate tonight, and I thank Members who have intervened on me. Most of all, I thank Reading fans and our whole community. I look forward to the Minister’s response.

[The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)]

I start by congratulating the hon. Member for Reading East (Matt Rodda) on securing this debate. As he mentioned at the start of his remarks, it was the intention of the Minister for Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), to respond to the debate, but he has had to return to his constituency urgently for reasons that I think colleagues will fully understand.

In his remarks, the hon. Gentleman highlighted the deep concern that he and many of the fans he represents have expressed regarding football ownership. I pay tribute to his commitment, and to theirs; having listened to his description, we understand how difficult it must have been for those fans over the past few years. We are very much aware of the passion and interest that many hon. Members feel about the long-term sustainability and governance of English football, and their commitment to their local clubs. I thank the hon. Members for City of Chester (Samantha Dixon), for Strangford (Jim Shannon) and for Sheffield South East (Mr Betts) and my hon. Friend the Member for Southend West (Anna Firth) for their contributions to this debate. In particular, as a Member of Parliament for Essex, I am very much aware of the difficulties faced by Southend United, and my hon. Friend has been a fantastic champion for the fans of that club.

The presence of those hon. Members in this debate demonstrates how important football clubs are to the lives of people in this country. In 2011, when I chaired the Culture, Media and Sport Committee—quite a considerable time ago now—we conducted an inquiry into football governance. It is somewhat depressing that, 12 years later, we are still debating many of the same issues. However, I hope that the inclusion of the football governance Bill in the King’s Speech yesterday will reassure the hon. Member for Reading East and others that this Government are intent on delivering and safeguarding the future of football clubs for the benefit of communities and fans.

The hon. Gentleman has talked about his own local club, steeped in the fabric of its community. It has been relegated, suffered sporting sanctions and faced financial penalties because of reckless decisions made by owners and terrible mismanagement. We have also heard about poor and non-existent governance practices, with fans being prevented from influencing key decisions that affect them and having to petition local councils, in some cases to protect stadiums. All such incidents threaten the long-term health and sustainability of all clubs, not just Reading.

We have heard about how English football clubs make significant contributions, and also about what happens when the community is let down by irresponsible owners in charge of football clubs. No employee, be they a player or, indeed, someone in the club shop, should fear not being paid. It is the local communities and fans that are the lifeblood of these clubs, and they bear the brunt and fallout of bad ownership decisions. They see where the structures are not working for the good of the game, and they can articulate most clearly how these are set right.

My colleagues in the ministerial team have prioritised engaging with fans and listening to their concerns, and I would like to pay tribute to my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) for leading the fan-led review of football governance. This has been of immense value in developing the White Paper and during the period of the consultation we held earlier this year. I would like to thank the Football Supporters Association for its support; its contribution has been extremely valuable.

Too many clubs have been brought to the brink with unsuitable owners taking over, stripping them of their assets and refusing to fund them any more. We are committed to breaking this cycle of inappropriate ownership, financial instability and poor governance practices. That is why the inclusion of the Bill in yesterday’s King’s Speech is so important. The Bill will establish an independent football regulator, which will put fans back at the heart of football and help to deliver a sustainable future for all clubs. It will strengthen the governance and financial resilience of football clubs to protect the national game and clubs linked with communities and fans. Crucially, the regulator will address systemic financial issues in football, while providing the certainty and sustainability required to drive future investment and growth. This will ensure that English football remains the global success story and tackles the harms that exist.

The Bill will give fans more of a voice in the running of their clubs by setting a minimum standard of fan engagement. Clubs will need to meet this, and will be required to comply with the FA on its new rules for club heritage. It will give fans a veto over changes to the badge and home shirt colours, in addition to the strong existing protections for club names. Most clubs have a strong relationship with their fans and consciously engage them in decisions about club heritage, but not all do. For instance, fans of Cardiff City and Hull City will understand the importance of these measures after they recently had to battle to bring back or to keep their club’s colours and badge. Likewise, the new system will create strengthened owners and directors tests to make sure a club’s custodians—their owners and directors—are suitable.

[Mr Betts]

I think the consultation with fans is absolutely at the heart of this. It was at the heart of the fan-led review, and I pay tribute to the hon. Member for Chatham and Aylesford (Tracey Crouch) for that. For the fans, it will be really important that the legislation specifies how fans groups will be appointed as part of the consultation, and it should not be left to the owners of clubs to decide which fans they want to talk to and which they do not, because that is at the heart of the current problems in many clubs.

[Sir John Whittingdale]

rose—

Oral Answers to Questions

Clive Betts Excerpts

Thursday 1st December 2022 Commons Chamber

[Michelle Donelan]

I would be delighted to meet my right hon. Friend. The Bill will ensure that children do not see content that promotes self-harm or glorifies eating disorders. Of course, the Bill will now be strengthened by a provision ensuring that adults will no longer see content promoting self-harm. I will invite the Minister of State, Ministry of Justice, the right hon. Member for Charnwood (Edward Argar), who has responsibility for victims, to join that meeting, to explain the clauses that we have added.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Minister quite rightly wore the armband in Qatar. Does he agree that it is completely disgraceful that FIFA stopped Harry Kane and other captains from wearing the armband as a demonstration of solidarity? Will he encourage our Football Association to work with other, like-minded FAs to ensure that FIFA changes its approach to the awarding and running of World cups?

[Stuart Andrew]

That was one of the reasons why I wore the armband. It was totally unacceptable that both the Welsh and English teams, at the 11th hour, were faced with an impossible decision. I thank those teams for wanting to wear the armband; it means a lot to all of us. I have already spoken to the FA about where we go from here. We cannot, at the end of this tournament, just let the matter come to an end. We need to talk about the future.

BBC Local Radio: Proposed Reduction in Provision

Clive Betts Excerpts

Tuesday 1st November 2022 Commons Chamber

[Julia Lopez]

I hope that the BBC listens carefully to all the points that hon. Members are raising today. As a public service broadcaster, the BBC is there to serve all demographics, but particularly those who are poorly served by other means. I am grateful to my hon. Friend for highlighting the charity work that her local radio station, BBC Radio Essex, has been so excellent in pursuing.

[Mr Clive Betts (Sheffield South East) (Lab)]

I echo the comments made by my hon. Friends already about the excellent services provided by Radio Sheffield—local news, local motoring and local football. The key is the word “local”. People in Sheffield and south Yorkshire want to know what is happening in their immediate communities: frankly, they are not desperately interested in what is happening in Leeds and west Yorkshire. I suspect the reverse is also true. While we seem to be promised that the local morning news will be protected, it appears that excellent programmes such as those on Radio Sheffield in the afternoon will be scrapped and merged into some amorphous regional offering. Will the Minister tell the director-general that that simply should not be allowed to happen and is not what local people want?

[Julia Lopez]

The hon. Member’s point goes to the fundamental question of at what point local news ceases to be local. I shall ask the director-general that very question.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 20th October 2022 Commons Chamber

[Michelle Donelan]

I would be more than delighted to meet my hon. Friend.

[Mr Clive Betts (Sheffield South East) (Lab)]

I want to push the Minister a little bit further, as he might appreciate. There is widespread support for the fan-led review. Okay, have the discussions about how it is going to be done, but can we have a commitment from the Front-Bench team that they are going to implement the principles of the review—an independent regulator, fairer distribution of funding, and an end to parachute payments?

[Stuart Andrew]

The hon. Gentleman is very good at pushing me on points, but I am sure he would accept that it is only right that I check all the details before making commitments. I assure him, though, that we will be publishing the White Paper very soon.

Statutory Gambling Levy

Clive Betts Excerpts

Tuesday 7th June 2022 Westminster Hall

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

I am just observing how many hon. Members want to speak in the debate. There are five. That means a guideline of about seven minutes for each Member before we come to the winding-up speeches.

--- Later in debate ---

[Craig Whittaker]

The one area where we already have a levy is the horse-racing sector, which has a strong link with gambling and betting. What does my hon. Friend feel that an additional levy on that sector will do to those jobs and on horse-racing?

[Mr Clive Betts (in the Chair)]

Order. I remind hon. Members that seven minutes was the guideline.

[Scott Benton]

Time is short, so I will not directly respond to the points made by my hon. Friend the Member for Calder Valley (Craig Whittaker), but I suspect he knows my feelings about an additional statutory levy, which is essentially a tax. It could create problems for horse-racing at a time when we are already considering other prohibitive measures that would affect sponsorship, and other elements of the debate that could have a further impact on horse-racing and, indeed, all sports.

Third sector charities are already effective and are making real progress. In contrast, a statutory levy looks like a retrospective solution to a problem that simply does not exist at the level that anti-gamblers want policymakers to believe. Is it really designed to help research, education and treatment, and the wider public as a whole, or is it a punitive measure to placate the anti-gambling lobby? A statutory levy will not boost funding for RET. The money is already in the system, and there is a bigger, broader commitment for the future. The Government need to tread carefully if they are to avoid hurting businesses and putting thousands of jobs at risk.

--- Later in debate ---

[Paul Blomfield]

As I said in an intervention on my hon. Friend the Member for Swansea East, from my experience of tackling the payday lending industry on a cross-party basis, the argument that it came up with to defend its own profits was, “Be afraid of illegal loan sharks, so do nothing about us and the misery that we are causing, because there is that threat out there.” We need to tackle both. That strategy needs to be developed and funded by a statutory levy.

Let me return to Jack’s case and the conclusions that were raised at his inquest by the coroner, who insisted that, despite small changes in regulation and treatment since Jack’s death, significantly more needs to be done by the state to protect people. Crucially, Jack did not know his addiction was not his fault. Liz and Charles think that if his addiction had been recognised as a health problem and treated more effectively—if he had been given the correct information and the doctors had been better informed—he could still be alive today, and so would many others.

Medical experts agree. Dr Matt Gaskell, who leads the NHS Northern Gambling Clinic, explained to the inquest that the treatment Jack received was insufficient, and he spoke about the impact gambling has on the brain, causing major changes as addiction develops quickly. He underlined that the whole public are at risk, not just a vulnerable few, and I know that that is also the view of the Minister responsible, the Under-Secretary of State for Digital, Culture, Media and Sport, the hon. Member for Croydon South (Chris Philp), who has previously said that gambling harm could affect any of us.

Obviously, a new approach is needed—one that promotes harm prevention and information about risk, as well as treatment and provision for early diagnosis. We have the skills and knowledge in our NHS, but we need the investment to make those services available to all who might need them. The hon. Member for Blackpool South said the NHS should be doing much more, and he is right, but the big flaw in his argument is that that should not be at the cost of other NHS services. It should be based on the “polluter pays” principle: those who do the harm should cover the cost of addressing it.

On the intervention made by the hon. Member for Shipley (Philip Davies), the levy should be set at the rate necessary to cover the costs of mitigating the harm and providing the treatment. If the problem gets worse, the levy may have to go higher; if it is reduced as a consequence of effective treatment, the levy may go lower. The levy should be responsive and based on the “polluter pays” principle. However, I am conscious of the time and of the fact that you are glaring at me, Mr Betts, so I will finish on that point. I hope that the Government recognise the power of these arguments.

[Mr Clive Betts (in the Chair)]

The guideline is now that speeches should be six minutes. Can we try to stick to that, to make sure all colleagues get in?

--- Later in debate ---

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Betts. I thank my hon. Friend the Member for Swansea East (Carolyn Harris) and congratulate her on securing the debate and on the passionate way she outlined the case for the Government to act faster to introduce a statutory levy.

Gambling-related harm is an issue that many, including myself, care deeply about, not least because of the detrimental impact it has on society as a whole, but also because it is far closer to home. Gambling-related harm runs through my constituency. Its impact is felt by people with lived experience of gambling harm and their family and friends. Faced with the real-life stories of my constituents, I simply cannot understand how anyone does not support reform. The mere fact that gambling harm is happening every day is proof enough that our current gambling regulatory system is failing us.

The voluntary system, which relies on the goodwill of the industry, has been woefully inadequate. The current system has no integration of NHS services, as we have heard, and also no consistency on funding decisions and no co-ordinated oversight of research into harms. What is more, there are serious questions to be asked about the independence of the voluntary system from the influence of the gambling industry.

We can see that the scale of the problem is huge, and yet there is so much to uncover. A mandatory levy in statute is an essential step for generating funding towards research, prevention and treatment services. Researching and growing our knowledge base will allow us to better understand the extent of the issue and, importantly, tackle it effectively, driving support and funds towards NHS treatment and support networks. Most importantly, that would be free from the influence of the industry that is perpetuating the harm that we are trying to treat.

The time has come for the onus to be placed on the betting industry to address gambling harms. It must be held to account for the damage it has inflicted through dangerous marketing and customer practices. The asks that myself and my colleagues have outlined today are rooted in a desire to help build a society where the risk of real harm from gambling is no longer accepted. The time for that is now long overdue, and the Government must take action. With the publishing of the White Paper, and everything that comes with it, there is an opportunity to take action. To keep to your time limit, Mr Betts, I will conclude by saying that I look forward to the Minister’s response. I hope he can reassure us that the Government are listening and will take the appropriate action.

[Mr Clive Betts (in the Chair)]

Last but not least, I call Jim Shannon. If the hon. Member can finish before half-past 10, that will allow time for the winding-up speeches.

[Jim Shannon (Strangford) (DUP)]

I will keep to your timeframe, Mr Betts. I congratulate my hon. Friend—she certainly is my hon. Friend—the Member for Swansea East (Carolyn Harris) on securing the debate. There are very few debates that she secures that I am not here to support, but this one is of particular interest to me, and I will explain why. I should also declare an interest as a member of the all-party parliamentary group for gambling related harm.

There have been some incredible speeches from Opposition Members, and also from the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who put forward in a very succinct and helpful way what is very much my own line of thought. This is not about being anti-gambling; it is about how we can use the levy in a way that addresses the issue of addiction, while hopefully giving some of the money to the NHS, as the hon. Member for Swansea East said.

It is clear that gambling addiction is a significant public health issue: it ruins families, marriages and communities, and in extreme circumstances it can lead to suicide. The hon. Member for Sheffield Central (Paul Blomfield) referred to one of his constituents who had been affected, and there are families in the Public Gallery today who have also been affected. I am ever mindful of Peter and Sadie Keogh from County Fermanagh—they are not my constituents, but they came to my attention some time ago because of the issue of addiction and gambling. I have examples from my constituency of people who have been addicted to gambling, and although it did not lead to suicide, they found themselves under incredible pressure that affected their families. Gambling can lead to financial pressures in the house, arguments and ultimately the break-up of marriages.

Peter and Sadie Keogh lost their son Lewis. Their story is mirrored by the stories of those who are here today and by the stories of addiction told by others. Lewis found himself gambling and did not realise how deep the problem was getting. His mum and dad were probably not aware of everything that was happening, but they were when Lewis unfortunately took his own life. That came about because his debts had overcome him. His ability to respond and to discuss matters in their totality with his parents and friends led him to think there was only one way out. I am here today for Lewis, Peter and Sadie Keogh from Fermanagh in Northern Ireland, and for all the others in Northern Ireland who have succumbed to suicide because of gambling addiction.

The harms of gambling addiction are an indisputable fact, and yet we have limited protections in place to support the most vulnerable in society. Chronic under-investment in the gambling treatment system has led to a situation where treatment is unregulated and lacks consistency, transparency and accountability. Between only 2% and 3% of people with gambling problems enter the treatment system, and nearly all of them enter through self-referral—we need to look at that. The gambling industry is hugely well resourced, and it could and should be doing so much more to identify and protect vulnerable people.

A 1% smart levy on the industry’s revenues would provide £130 million—an increase of over £100 million on what we currently receive. What the hon. Member for Swansea East and most of us here today are saying is that that is not a big amount for the sector, but it will make a big difference. If the DCMS introduces a smart statutory levy on the gambling industry—that is already within the power of the Secretary of State—it can take control of the funding for research, education and, ultimately, treatment back from the bookies, set up a long-term funding commitment, allow clinicians and academics to commit to projects and programmes properly and safeguard the independence of research and education to ensure that the gambling industry can no longer mark its own homework. If such a levy were based on the “polluter pays” principle, it would not punish the bingo halls and the high street arcades that support local high street communities across the UK, but instead would force gambling operators who are all too often based offshore to pay for the harm that they undoubtedly fuel.

Compared with the other regions of the United Kingdom, the level of participation in gambling in Northern Ireland is higher. In England, the rate is 62%, and in Wales, it is 61.3%, but the rate in Northern Ireland, which is similar to the most recent recorded participation rate in Scotland, is 67.8%. Compared with the other regions of the United Kingdom, the proportion of the population in Northern Ireland found to be problem gamblers is also higher, at 2.3%. In Wales, it is 1.1%, in Scotland, it is 0.7%, and in England, it is 0.5%. We have a serious gambling problem in Northern Ireland, and our numbers outstrip those in the other three countries put together.

I always look forward to seeing the Minister, who is always incredibly helpful. He looks to help and reassure. I ask him what discussions he has had with his counterpart in Northern Ireland about gambling addiction and the fact that the rate in Northern Ireland are higher than in the rest of the United Kingdom put together. What steps can be taken to assist, help or advise the Northern Ireland Assembly Ministers?

The report on participation in gambling identified the four most common types of gambling in Northern Ireland as the national lottery; scratchcards or instant win; betting on an event or sport; and other lotteries, raffles and ballots. Sometimes, when I am in the garages back home getting petrol or diesel, I see people buying scratchcards, and I sometimes feel quite moved. That scratchcard is their hope of getting money to help with whatever it may be—to pay the bills—but that scratchcard is a gambler’s chance. It is very unusual for it to lead to any income.

Some types of gambling cannot be regulated in a meaningful way, but some can, and I believe that the levy is an essential tool in regulation. I encourage the Government and the Minister to see where the problem lies and to tackle it at the root. The purpose of a gambling statutory levy is to generate moneys to help those with addictions and to assist their families, and to help the NHS. It is right that the gambling sector should pay more. In my opinion, and that of many others, the publication of a White Paper cannot come soon enough. I urge the Minister and his colleagues in Government to take the opportunity to deliver meaningful change where the industry quite clearly has not yet done so.

[Mr Clive Betts (in the Chair)]

We move on to the Front Bench spokespeople, who have 10 minutes each. After that, there will be a short time for the mover to wind up at the end. I call Ronnie Cowan for the SNP.

--- Later in debate ---

[Jeff Smith (Manchester, Withington) (Lab)]

It is always a pleasure to see you in the Chair, Mr Betts. I pass on the apologies of the shadow Minister, my hon. Friend the Member for Pontypridd (Alex Davies-Jones), who is in Committee, as indeed is the Under-Secretary of State for Digital, Culture, Media and Sport, the hon. Member for Croydon South (Chris Philp) —although it is always a pleasure to see the Minister across the Chamber.

I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) on securing this debate and on her, as always, excellent and comprehensive speech. I congratulate all hon. Members who have taken part, including my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones). My hon. Friend the Member for Sheffield Central (Paul Blomfield) spoke powerfully about his constituent Jack, and importantly identified the shortfall in diagnosis and treatment, and the lack of specialist gambling support across the country. I have had a number of meetings with former gambling addicts, and they have often identified that it is really hard to get treatment where they want, as there is a bit of a postcode lottery. Anybody who suggests that an increase in funding is not necessary for the support and treatment of gambling addicts is completely wrong. We have a decided lack of specialist treatment, and we really need to get extra funding into it. That is the heart of the issue.

The right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) was absolutely correct when he said that the people speaking in this debate are not anti-gambling; we are anti-gambling harm. We need to make that important distinction.

As I said when we most recently debated gambling in this place, reform is long overdue and the Government have been dragging their feet. Many forms of gambling are a pastime that lots of people enjoy. They are a source of employment and economic activity for communities in towns and cities across the country. Nobody sensible wants to send gambling to the underground or the black market, but we have to recognise that it can also be a highly addictive activity that damages families and communities. That is why we need action, not more words, from the Government. Time and time again, as we have heard, we have been promised legislation only for it not to materialise.

As we have heard from a number of hon. Members— I have heard this graphically from the relatives of people who have died by suicide and from former gambling addicts—the business models of some gambling companies, and some gambling products, add to significant harms, leading to high levels of problem gambling, mental health issues and, sadly, suicides. Regulation is long overdue, particularly since the huge growth in online and mobile gambling. Smartphones give opportunities to gamble pretty much anywhere, anytime, and the unregulated online spaces fail to protect users.

As we have heard, the Gambling Act 2005 is the basis for the regulation of gambling in Great Britain, but it has not been updated since it was passed and it is not fit for the digital age. The key Conservative manifesto pledge in 2019 was to review gambling laws in response to mounting concerns about how this £14 billion-a-year industry is regulated. The White Paper was originally due to be published before the end of 2021. Labour has been calling on the Government to bring forward gambling legislation for a long time. In 2019, we also committed to introducing a gambling Act.

The delay in tackling this issue is costing money as well as lives. The Public Health England review found that the annual economic burden of harmful gambling is £1.27 billion. That is £647 million in direct costs to the Government and £619 million of wider societal costs associated with suicides. It is about not just lives but money, and we need to address that issue.

Will the Minister confirm when exactly we will see the White Paper? We definitely need to see it in the coming weeks. I agree with the hon. Member for Inverclyde (Ronnie Cowan) that we need to see it long before the summer so we can start discussing these issues. It needs to build on the consensus across the House that we need to bring this regulation into the digital age.

The all-party parliamentary group for gambling related harm, chaired by my hon. Friend the Member for Swansea East, who has campaigned magnificently on this issue, recommended a mandatory levy on the gambling industry to fund research, protection, treatment and education, and address gambling-related harms, including to consider the links between gambling and suicide. At the moment, as we have heard, gambling firms have no mandatory requirement to fund addiction research and treatment services. Many do so through the voluntary scheme, but it is variable and uncertain. That uncertainty makes it difficult to plan long-term projects.

The five big gambling companies have committed to paying 1% of their gross yields towards safer gambling initiatives by 2023, but the variation between online products and their donations is a real issue. The legal power to impose a levy on the gambling industry has existed since 2005, but it has never been used due to the Government’s insistence that the industry should support harm-reduction work on a voluntary basis. I think that the highest figure was last year, with £35 million coming through voluntary donations. It has been estimated that a statutory levy would increase that to around £140 million, but we must put that in perspective: the gambling industry spends £1.5 billion a year just on advertising. That is the scale of the issue. The Government must take this proposal seriously.

My hon. Friend the Member for Swansea East made the important point that a levy should be smart or differentiated to tackle the most dangerous forms of gambling without harming, for example, bingo halls. I should be grateful if the Minister would outline what consideration the Government have given the proposal. We need clarity about what will be in the White Paper and how a statutory levy might work. We absolutely need to tackle gambling harm across the board, so that the families of those who have been immeasurably harmed by gambling can have confidence that what has happened to their loved ones will not happen to others.

[Mr Clive Betts (in the Chair)]

May I ask the Minister to ensure that there are a couple of minutes left for the mover to reply?

English Football League Governance: Derby County FC

Clive Betts Excerpts

Tuesday 18th January 2022 Commons Chamber

[Chris Philp]

The Treasury, or Her Majesty’s Revenue and Customs I should say, as an unsecured creditor, is like any other unsecured creditor, and the administrator will treat it fairly and even-handedly, as it would treat any creditor in this situation. I do not think the existence of that debt, among other debts, is the obstacle to completion of the transaction; other issues to do with outstanding legal proceedings and matters that the EFL is responsible for are more immediate obstacles. That is why I repeat my call for the EFL and those other clubs, such as Middlesbrough, pragmatically to get this situation resolved as quickly as possible.

[Mr Clive Betts (Sheffield South East) (Lab)]

I think we can all, as football fans, feel for the fans of Derby County. We can imagine what it would be like if our club were in such a position, with all that history and our fathers and grandfathers—and grandmothers—having supported a club that is about to disappear. We have to feel for them. It is unthinkable that Derby should go out of existence, but it was unthinkable that Bury should go out of existence, and look what happened.

This is really just another example of the complete mess that is football finance. Why are the rules about administration in place? It is because a few years ago Leicester City deliberately went into administration to get rid of its debts to enable it to be promoted to the premiership at the expense of Sheffield United. It is a complete mess. There are two issues that arise: get the Crouch fan-led review in place as quickly as possible to sort out football finances; and in the meantime get the EFL—I have some sympathy for it because of the difficulties it faces—to give a proportionate and proper response to Derby to make sure that club survives.

[Chris Philp]

We all agree, without question, that the steps to ensure Derby County’s survival must be taken as quickly as possible. On the wider points made about football finance and the situation the hon. Member mentioned a few years ago, I would just point again to the fan-led review, led by my hon. Friend the Member for Chatham and Aylesford. It is precisely to deal with the issues that he quite rightly raises that the review was initiated and why my hon. Friend the Sports Minister will be acting on it.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 6th January 2022 Commons Chamber

[Ms Dorries]

I am sure my hon. Friend is aware that we have paid a huge amount of attention to local football clubs, particularly over the past year, not least as a result of the fan-led review that has been undertaken by my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), who is here today.

We continue to provide considerable support for hospitality businesses this year. That is part of around £400 billion of direct support for the economy, which has helped to safeguard jobs, businesses and public services. We have also provided an unprecedented £1 billion to ensure the survival of grassroots professional support and leisure sectors. I am happy to meet my hon. Friend to discuss this further.

[Mr Clive Betts (Sheffield South East) (Lab)]

The current Secretary of State for Levelling Up, Housing and Communities is the fourth to promise this House a White Paper on devolution initially and then a White Paper on levelling up. Indeed, we were absolutely promised that the levelling-up White Paper was coming before Christmas. I will not ask the Secretary of State to gaze into the future and predict whether we are actually going to get the White Paper this year, but given that she has answered a question about the levelling-up agenda, could she explain to the House precisely what it is?

[Ms Dorries]

It is about levelling up—I am very sure. Equality and opportunity for all is probably the best way to describe it. It is certainly an ethos that is overlaid as a filter on every policy in my Department: equality and opportunity for all. I am very sure that the paper he is looking for will be here shortly, too.

Independent Fan-led Review of Football Governance

Clive Betts Excerpts

Thursday 25th November 2021 Commons Chamber

[Nigel Huddleston]

I thank my hon. Friend as well for his commitment, interest and insight into football and, indeed, into sport in general over many years and I appreciate what he is saying. Yes, I can say that, of course, we could not have an effective regulator without also having adequate powers, and the elements that he has considered will, of course, be part of that package. When I say that we accept in principle and are therefore considering moving forward with legislation that includes not only the regulator itself, but the powers that the regulator may have.

[Mr Clive Betts (Sheffield South East) (Lab)]

I thank my honourable football friend, the hon. Member for Chatham and Aylesford (Tracey Crouch), for the report that she has produced. We look forward to further discussions with her at the football group meeting next week. Richard Caborn, a previous Sports Minister, convened a group of football parties in Sheffield, and we put forward a submission to the review, promoting the independent regulator, the golden share, and important elements of the review that have now been published and supported by the hon. Lady. That is really welcome. Does the Minister accept that, at the end of the day, the regulator must have real powers to redistribute the funding of football to do away with the cliff edge between the premiership and the championship and the cliff edge within the championship that is caused by parachute payments?

[Nigel Huddleston]

Again, I thank the hon. Gentleman. We have had many discussions about football and I know of his interest. In fact, most people in the House today have shown great passion and enthusiasm for football over many, many years and have all contributed to the review. He is right to point out that the regulator needs adequate powers. That is exactly the kind of thing that we are looking at and he will be well aware as well that, in the report, there are recommendations about flow of finance. I do not believe that we can completely divorce governance from financial flows, so, in our response—and I cannot pre-empt the response today—those will be exactly the kind of things we will be considering.