Football Governance Bill [ Lords ] (Seventh sitting)

Lee Dillon Excerpts

Committee stage
Thursday 12th June 2025 Public Bill Committees

[Lincoln Jopp]

I wish to build on my hon. Friend’s themes. Football has the unfortunate concept of the friendly; frequently, they are not very friendly at all. When I read the Bill, it was clear to me that the drafters had in mind the prevention of another flyaway European super league, which we have debated.

I would like the Minister to look at look at the example of a one-off friendly match. Many of our teams tour in the far east and in America, in their off-season, to generate additional revenues and expand their fan base and brand. Let us envisage a set of circumstances in which a North Korean has somehow managed to purchase an English football team, and they have the bright idea that they would like to play a “friendly” match in North Korea. It is a one-off match, but the Government in North Korea decide that they want to make a big deal of it, so it becomes the Pyongyang cup—a one-off match between the English team and the North Korean team. In the Minister’s view, would the regulator be justified in considering whether such a one-off match was a competition and therefore within the purview of the regulator?

[Mr Lee Dillon (Newbury) (LD)]

It is a pleasure to serve under your chairmanship, Ms Butler. Pre-season friendlies constitute cup competitions all the time. There is the Audi cup; any major brand we could name will have sponsored friendly cups. When the Minister gives the hon. Gentleman assurance on the Pyongyang cup, perhaps she might also cover the friendly cups that actually exist.

[Lincoln Jopp]

The hon. Member makes a pertinent point. As I said, the word “competition” seems to refer to the sort of flyaway league we have discussed; are one-off friendlies competitions under the terms of the Bill?

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[Mr Betts]

The purpose of this group of amendments is to introduce a wider definition of a club’s home ground that includes the training ground, which is how the different amendments link together. Amendment 86 sets out the wider definition that is then used in the other amendments. In the end, in this day and age, most professional clubs cannot survive with just a home ground and need additional facilities. If those additional facilities are sold off, the club can become unviable. That is what some unscrupulous owners will seek to do, because sometimes the training ground is the most valuable asset in potential for development.

[Mr Dillon]

The hon. Gentleman’s amendments find support from the Liberal Democrats. He referenced training grounds, and Reading football club’s training ground, Bearwood Park, was actually in that exact position. The owner tried to sell it off because it was prime land for residential development. However, without that training facility, the club would clearly struggle to continue. There was even the potential to sell the training ground to rivals Wycombe Wanderers, so that they could then have an enhanced training ground. The hon. Gentleman will be aware that the Liberal Democrats have tabled new clause 11, which seeks to protect various assets of a football club, including the training ground, so he has our support.

[Mr Betts]

I hope the Minister can take this seriously; it is a worry that the Bill does not quite go far enough at present. The reality is that this legislation tries to deal with bad owners and anticipate how they might behave. The more restrictions that we can build around bad behaviour, and possibilities for controlling it, the better.

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[Stephanie Peacock]

I thank my hon. Friend for tabling the amendments. Home grounds are a vital asset for all clubs, so I do understand his intent.

Regarding changes to the ownership of a home ground, the potential adverse outcomes are entirely financial. We do not believe that they impact the heritage of the club, which is why clause 46 does not require any heritage consideration or fan engagement. Additionally, decisions about the financial arrangements of a home ground are commercial decisions and therefore we do not think it is appropriate to legislate on them. However, I will reassure my hon. Friend that if the sale of a club’s home ground would result in the relocation of the club, fans absolutely have to be consulted about that, as per clause 48, which we will discuss later. We know how much home grounds matter to fans and communities, but this clause is purely about protecting a club’s financial position.

[Mr Dillon]

I seek some clarity on the relocation of a ground. White Hart Lane was demolished and rebuilt on a similar, but bigger footprint. Obviously, at Old Trafford, Manchester United’s owners are talking about building on land next to the stadium. Personally, I would not class either of those moves as the relocation of a ground. However, in the Bill would they count as relocation, because those new stadia are not on the same footprint as the original stadium?

[Stephanie Peacock]

I will double-check that point, but I believe they would. I also refer to the points we discussed earlier in the Committee: clubs may want to move for a particular, legitimate reason—to improve their ground, or because they have to due to flooding in adverse weather, for example. We appreciate that these are not all bad actors and it is not all bad faith, but I will double-check that point and come back to the hon. Gentleman. We know how much home grounds matter to fans and communities; this clause, together with the owners and directors test, is about protecting the club’s financial position and its balance sheet from asset stripping by bad actors.

Football Governance Bill [ Lords ] (Eighth sitting)

Lee Dillon Excerpts

Committee stage
Thursday 12th June 2025 Public Bill Committees

[Stephanie Peacock]

Clause 48 places a duty on clubs not to relocate from their home ground without approval from the regulator. As we just discussed, home grounds play an important role in the history of a club and are often the club’s most valuable asset. These grounds are where many thousands of fans watch their teams play every weekend. Relocating them to areas that have no connection to the heritage and history of a club can have a significant impact on those supporters and the local area, as we saw when Wimbledon moved to Milton Keynes, which my hon. Friend the Member for Sheffield South East just spoke about.

The impact of a home ground relocation on fans and the club is why we are legislating for the regulator to pre-approve any proposal in that regard. As subsection (4) of the clause sets out, the regulator must be satisfied that the proposed relocation would not “undermine the financial sustainability” and significantly harm the heritage of the club. This Government have added a requirement for the regulator to be satisfied that the club has taken

“reasonable steps to determine the views of… fans”

and taken those views into account.

The Government do not want to stifle development where it brings value and aligns with the heritage of the club. The clause makes the important and necessary recognition of the vital role that home grounds play in communities and adds an extra layer of protection to them while leaving room for clubs to evolve and continue to develop. I commend the clause to the Committee.

Question put and agreed to.

Clause 48 accordingly ordered to stand part of the Bill.

Clause 49

Duty not to change crest, home shirt colours or name without approval

[Mr Lee Dillon (Newbury) (LD)]

I beg to move amendment 140, in clause 49, page 40, line 31, at end insert—

“(1A) A regulated club must notify the IFR if it is considering making any material changes under subsection (1) and the IFR must monitor the reasonable steps taken to independently establish that the changes are supported by a majority of the club’s fans.”.

This amendment would require the IFR to take steps to independently oversee a club’s fan consultation process on the material changes specified.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 92, in clause 49, page 40, line 33, leave out

“approved by the Football Association”

and insert

“supported by a majority of the club’s fans domiciled in England and Wales.”.

Amendment 111, in clause 49, page 40, line 33, at end insert

“and a majority of the club’s fans”.

[Mr Dillon]

It is a pleasure to serve under your chairmanship, Ms Butler. Clause 49 is an important part of the Bill, particularly if we look at recent history. We saw Cardiff City unilaterally changing the colour of their kit and the Leeds United club badge redesigned using something similar to Microsoft Paint. All that was done without consultation or agreement with fans. Both those decisions were met with overwhelming negative reaction from football fans.

Our amendment would allow for fans to be properly consulted before such irresponsible and poorly supported changes even see the light of day. The regulator should be responsible for ensuring that the consultation of fans on such changes is independently observed in a fair and transparent process. In this morning’s debate, the hon. Member for Sheffield South East raised the point about what consultation and fan engagement mean. This amendment tries to get to that in some respect.

It would be all too easy for some clubs to hand-pick a small group of fans that they know will agree with them and make an announcement claiming overwhelming support for a change. If the regulator is able to observe the process, fans can be reassured in the knowledge that the proposals will be given proper scrutiny and challenging views will be heard and considered.

[Joe Robertson (Isle of Wight East) (Con)]

Can the hon. Member explain what the process the football regulator should go through would look like? The amendment does not specify any standards for what acceptable oversight of the consultation process would be.

[Mr Dillon]

We are happy to put the onus on the regulator to create a process by which it can reassure itself that a full consultation process has been undertaken. That consultation process could look different for different teams. A Premier League club has a country-wide fan base and a large amount of fans to engage with, whereas a smaller club might have a regional fan base and a smaller number of fans to engage with, so a different consultation method may be appropriate. We would be happy for the regulator to have that in its purview.

[Mr Betts]

I just want to ask a simple question: why has “the Football Association” suddenly appeared at this point in the Bill? It has not been part of the requirements on the regulator until now. If I am right, it was not in previous iterations of the Bill—I may be wrong. I would have thought that the view of fans is most important. The FA does excellent work on many issues in football, not least trying to engage with England fans, but in this respect, are the fans of the club not more important?

[Mr French]

Clause 49 introduces a duty on regulated clubs to safeguard key aspects of what the Bill defines as club heritage. This specifically relates to changes in a club’s name, its badge and its home shirt colours—things that may seem cosmetic to the outsider, but which football fans know are part of the heart and soul of a club.

Whether it is the famous black and white of Newcastle United or the immense history of Deepdale in Preston, these things mean more than just the colour of the top or where people watch football. They are integral parts of footballing communities. They symbolise membership of something bigger than oneself. The club colours, the club badge and the home ground are all ways in which fans identify themselves as being part of a footballing family. They must be protected.

This clause is an important recognition in statute that football clubs are not just commercial entities, but cultural institutions, symbols of community identity and civic pride. As such, changes to these heritage elements should not be made casually or without due regard to those whose lifelong support gives clubs their very meaning, often across generations.

We welcome the inclusion of clause 49, which we believe is essential, but we do not believe it goes far enough. That is why we tabled amendment 111.

[Mr Dillon]

Similar to the challenge to my amendment on what consultation looked like, this amendment is silent on how a majority of the club’s fans is worked out. I wonder whether the hon. Member could address that point.

[Mr French]

Yes, I am happy to and will come on to that point. Amendment 111 would require the majority of fans to approve any such changes to a club’s official name, its badge or its home shirt colours, not just to support them. “Support” can be vaguely defined. It can be skewed by a few loud voices or specific interest groups, rather than being a genuine exercise in democracy. While consultation is important, it is ultimately no substitute for consent.

Football clubs are, by their very nature, multi-generational institutions. Most are older than the companies or corporate vehicles that now own them and some are even older than the Labour party that now seeks to impose this regulator. They existed before many of their current directors were born and will, we hope, outlast all of us.

The badge on the shirt is not simply a badge: it is a symbol of place, of pride, of glory and heartbreak, of a historic past and a hopeful future. The name of a club is not simply branding: it is geography, history and memory all in one. And the home shirt, whether it is red, claret, blue or black and white, is more than a colour scheme—I apologise if I missed any; orange for Wolves, maybe, but I am sure hon. Members get the point. It is part of the club’s identity, part of the community’s fabric.

When clubs change these things, particularly when they do so without the blessing of their supporters, they do more than upset tradition. They erode trust and sever the cultural connection that keeps that team and the English game alive. Let us not forget that when Cardiff City’s owner unilaterally changed their home shirt from blue to red, the backlash was enormous, because it was not Cardiff’s colour. Cardiff’s owners, much like the electorate, came to regret switching from blue to red pretty darn quickly. Will the Minister confirm whether clause 49 would prevent what happened at Cardiff or whether such a change could still be pushed through after a period of consultation, however superficial?

The clause imposes a duty on clubs to consult fans before making changes to heritage elements. That is better than nothing, but is quite a low bar. We have all seen what consultation can look like in practice—a web form, a vague email or a one-off survey. Then the changes proceed regardless of overwhelming opposition, with clubs claiming that consultation has been completed.

I think most hon. Members would agree that that is not meaningful engagement and it certainly does not reflect the degree of ownership that supporters rightly feel over the identity of their home club. That is why we support the amendment to move the requirement from consultation to majority fan approval—that is, in other words, a vote, or a similarly binding expression of fan will, overseen through whatever supporter representation structure the club has in place. Will the Minister set out what the Bill actually means when it states,

“the club has taken reasonable steps to establish that the changes are supported by a majority of the club’s fans in England and Wales.”?

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[Stephanie Peacock]

As I said, the FA, with oversight of the levels of football, is in a good position to ensure that name changes do not have unintended implications for clubs that are outside the regulator’s scope. It has done that point on names well. That is why we want to leave it to do the good job it is doing.

[Mr Dillon]

I thank the Minister for her response. Although the Bill tackles financial sustainability, it has a real ability to rebuild trust between fans and football clubs. I feel that all three amendments are still worthy of being pressed to a vote, and I commend amendment 140 to the Committee.

Question put, That the amendment be made.

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[Mr French]

It is my pleasure to speak to amendment 133. Clause 53 introduces a duty on regulated clubs to pay a statutory levy to the Government’s new regulator—a mechanism intended to fund its operations and ensure its independence from Government and industry influence. The principle is not unreasonable. If clubs are to be regulated, one could argue that it is fair that they should contribute to the costs of said regulation.

However, we have two initial concerns. First, as the initial costs incurred are to be borne by the taxpayer, that does not ensure independence from Government—quite the opposite; it creates a reliance on the Government for funding and therefore for direction and sponsorship of activities. According to the Government’s own impact assessment, the regulator will cost taxpayers around £106 million until the levy provided for by the clause is up and running.

To put that in context, that money could fund the Lionesses futures fund, which the Government have scrapped, more than three times over. In what should be a fantastic and inspirational year for women’s sport, the Government are choosing to spend money on regulating men’s football instead of investing in the growth of the women’s game. I make that comparison with quite a lot of regret because I believe that it is the wrong decision by the Government, but I will stick to the Bill.

Secondly, many clubs have not asked to be regulated, and they might ask why they should pay for a regulator that seeks to stifle their operations or interfere with their performance and make them uncompetitive in the competitive world of sport. I have asked the question the Minister in previous sittings what would happen if a club chose not to apply for a licence. I am a bit unclear how that would look. According to the Government’s own impact assessment, the yearly cost to all regulated clubs in the English football pyramid will be up to around £142 million, with up to £1.2 million in one-off familiarisation costs, ongoing compliance costs of up to £35.8 million every year following the first year, and operational costs, which will be incurred every year. As I mentioned earlier, the operational costs will be funded initially by the taxpayer, before an industry levy is introduced.

That is an extraordinary amount of money to be leaving the game, especially as the Minister has recognised that money leaving the game in agents’ fees, for example, is detrimental to the sustainability of English football. The costs that the Government are imposing on clubs through the regulator clearly threaten the sustainability of some clubs, as a stand-alone issue. Moreover, as the Minister’s own impact assessment states, the costs are not expected to fall equally on each club; proportionately, they will be greater, and felt more greatly, further down the pyramid.

The impact assessment also states that factors such as

“existing levels of compliance impact the level of activity required”

by the regulator. We all know that that means more work and higher costs for lower-level clubs over the wealthiest. They will have more catching up to do than the big clubs in most instances, leaving them to bear the brunt of the Government’s regulator. It is vital that, as Opposition Members have said throughout this Committee, the regulator is not captured either financially or politically by any one interest group. However, that will now prove difficult with the appointment that the Government have made.

Although we support the broad purpose of clause 53, we must interrogate its fairness, proportionality and impact on smaller clubs. That is why I tabled amendment 133, which would exempt clubs with fewer than 10 full-time equivalent employees from the statutory levy. Regulators do not run on good will alone, and this one certainly will be no different. They need staff systems and legal support, but costs must be borne fairly and in a way that does not threaten the institutions that the Bill seeks to protect.

Clause 53 allows the regulator to determine how much is paid, by whom and how often, subject to regulations approved by the Secretary of State. It is a wide power and an open-ended one. As it is drafted, the Bill does not place any cap on the amount or impose any statutory criteria on proportionality. Will the Minister confirm whether the Government intend to introduce guidance or a statutory cap on the total amount that might be levied by the regulator, either per club or across the sector?

Given that the proposed appointee to the role of chair donated to the Secretary of State, can the Minister confirm that the Secretary of State will not make any decision on how much money can be levied in the future? As it stands, the clause effectively allows the Secretary of State to write a blank cheque to a regulator run by a person who donated directly to her leadership campaign. That alone creates the perception of a conflict of interest, for which the current Secretary of State, as we all know, is under independent investigation.

Although some Premier League clubs might be able to absorb the costs, the same cannot be said for smaller, lower-league or community-based clubs such as Barnsley, Bromley or Wigan. My amendment would create a simple, fair exemption. Any club with fewer than 10 full-time equivalent employees would not be required to pay the levy. That is not just an administrative fix; it is a recognition of football’s diversity and, in true footballing spirit, would champion the underdogs by allowing them to focus on their squads or stadium improvements that would benefit fans. A club with eight employees is not in the same universe, financially or structurally, as a Premier League club with a commercial team, global brand and multimillion-pound payroll.

[Mr Dillon]

Is the shadow Minister aware of how many clubs within the scope of the Bill currently have fewer than 10 full-time employees? Players are club employees, so they would need to be excluded from that number.

--- Later in debate ---

[Mr Dillon]

I appreciate the shadow Minister’s response to my previous intervention, but he did not answer how many clubs currently within scope of the Bill have fewer than 10 employees. Just out of interest, does he know how many would benefit from his amendment?

[Mr French]

To be completely up front, I do not have that answer in front of me, but I will find out—the team has drafted this amendment.

Without this amendment, clubs in both the Premier League and League Two could find themselves subject to the same regulatory levy. This risks creating a two-tier burden, where the most vulnerable clubs are saddled with costs that they cannot pay for a regulator that many of them do not want.

Why have the Government chosen not to introduce an automatic exemption for the very smallest clubs, and has an exemption based on staffing levels or turnover been considered? We already accept differential treatment in other areas of public policy—for example, small businesses are treated differently from large corporations, and community amateur sports clubs benefit from separate tax and regulatory frameworks. We believe that the same logic could apply here.

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[Max Wilkinson]

It is a pleasure to serve under your chairship, Ms Butler. Earlier in our deliberations—I cannot remember how many sittings ago—the Liberal Democrats made the case for extending the Bill’s scope to the sixth tier, the National Leagues. Effectively, we feel that helping those clubs up the pyramid would be useful, and on a cross-party basis, we have discussed support for the National League’s 3UP campaign, which we can take forward after Committee as a group of Members who are interested in football.

This amendment is quite simple, as it is about extending the Bill’s scope to the sixth tier. It would give clubs in National League North and National League South the opportunity to apply for an exemption from the levy, were it to be extended to that level. Clubs at that level may well not have the capacity to take on the administration associated with regulation. Such increased financial protections for lower-league clubs—those in the National League and National Leagues North and South—would align with the principles of the Bill.

[Mr Dillon]

It is a privilege to serve under your chairship, Ms Butler. New clause 24, tabled in my name, seeks to introduce a fair and transparent exemption procedure for football clubs in administration. When a football club enters administration, it is not merely a financial event; it is often a crisis that rocks the entire community, as we saw in Bury. Supporters, many of whom have been lifelong followers, are left facing uncertainty and fear for the future of their club, which is often the heartbeat of their town or city.

New clause 24 seeks to strike a vital balance by maintaining the integrity of the levy while allowing compassionate and evidence-based interventions when a club is on its knees. It would ensure that exemptions are not handed out indiscriminately, and that the regulator must assess each case on its merits and satisfy itself that the club’s financial difficulties are not a calculated move to evade its levy responsibilities. Most importantly, the new clause would give clubs a chance.

[Stephanie Peacock]

I thank the shadow Minister for his amendment, and I thank the hon. Members for Cheltenham and for Newbury for their new clauses. I acknowledge the intent behind them.

We will shortly discuss the levy in more detail when I speak to clauses 53 and 54, but in short, the Bill gives the regulator the power to collect a levy to recover its running costs from football clubs that hold an operating licence. I will outline why the Government intend to resist this amendment and these new clauses before directly answering some of the specific points that hon. Members have put to me.

The levy arrangement follows the precedent of other regulators, such as the Financial Conduct Authority, the Competition and Markets Authority and Ofcom. As the regulator is designed to improve the financial sustainability of English football, it is vital that the associated costs do not burden clubs, especially those further down the pyramid.

Amendment 133 and new clause 5 seek to address similar issues relating to ensuring that small or lower-league clubs are not burdened by unaffordable costs as a result of this regulation. I assure the Committee that the Bill is already designed with National League clubs in mind. The regulator will be tasked with improving the financial sustainability of football, and placing an undue burden on small clubs would be completely contradictory to that aim.

Clause 53(10) introduces a statutory requirement for the regulator to have regard to each club’s individual financial circumstances, and the league in which it plays, when setting the levy. Given that requirement, we expect that the levy will be proportionate, with the Premier League—specifically the six clubs with the highest revenues—covering the majority of the cost. That solidarity will reduce the burden on clubs lower down the pyramid. No club should be charged more than it can afford.

Through its levy rules, the regulator will also have the power to exempt clubs from paying the levy. That power, provided by clause 53(8), ensures that there is a mechanism to avoid burdening clubs. If certain conditions set by the regulator through rules are met, the regulator has the discretion to exempt clubs from paying the levy—that answers the shadow Minister’s question. The power will work in conjunction with the requirement on the regulator to consider each individual club’s financial resources, and the competition in which it plays, when setting the levy, as well as the requirement to consult all regulated clubs on its levy rules.

On new clause 24, I agree wholeheartedly that the regulator should not place an undue burden on a club that has already entered administration. I reassure the hon. Member for Newbury that the regulator will set out its levy methodology, including the discretion to set the levy according to a club’s individual circumstances, and to exempt a club completely if specified conditions are met.

The regulator has a core objective of improving the financial sustainability of English football, and I am confident that it will be cognisant of the impact that the levy could have on any club, and especially a club in administration or other financial distress. The Bill’s provisions, such as the regulator’s discretion to exempt certain clubs from the levy, if necessary, account for that core objective.

In response to the shadow Minister, I note that there is no cap, but the regulator can set costs related only to its functions. As I have just outlined, under the powers granted to the regulator by the Bill, it could exempt small clubs from the levy, if that is deemed necessary. However, we do not think that mandating a complete exemption in legislation is appropriate. Exempting a whole league before an assessment has been made of whether clubs in that league can afford the levy would be disproportionate.

[Stephanie Peacock]

There is no cap. However, I draw the hon. Gentleman’s attention to the regulatory principles we addressed earlier in the Bill. Obviously, the regulator needs to be proportionate and reasonable. The regulator will guide its operations according to those principles.

[Mr Dillon]

On the allocation of the levy, the Minister said that the top six teams would cover the majority. Can she point to where that is in the Bill? Is it the top six financially or in league positions?

[Stephanie Peacock]

I am grateful to the hon. Gentleman for taking the words out of my mouth, because I was going to conclude by drawing the Committee’s attention to a letter placed in the Libraries of both Houses when the Bill was in the other place. The letter, dated 6 March, was sent by Baroness Twycross, who took the Bill through the Lords. I will not detain the Committee by reading out the letter—Members can look at it—but it breaks down the proportions. Obviously, costs are based on the impact assessment and are indicative, so they are not meant to be prescriptive; it is meant to be an indicator. The letter may be helpful if the Committee would like more detail.

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[Mr Dillon]

On a point of order, Ms Butler. I do not think we have withdrawn or taken a decision on the new clauses. I am happy to withdraw mine, but this is just for formality.

[The Chair]

Decisions on the new clauses will be made at the end of the Committee’s considerations.

Football Governance Bill [ Lords ] (Sixth sitting)

Lee Dillon Excerpts

Committee stage
Tuesday 10th June 2025 Public Bill Committees

[Mr French]

I beg to move amendment 131, in schedule 5, page 103, line 16, at end insert—

“Agents fees

11A (1) An agents fees condition is a condition requiring a club employing an agent to cap their fees.

(2) The agents fee cap will be set by Regulations subject to approval by both Houses.”

My amendment proposes that clubs regulated by the Government’s new regulator should be required to cap the fees paid to agents, because, as many fans know, an ever-increasing amount of money is leaving the football pyramid to agents. The level of the proposed cap would be set through regulations, subject to the approval of both Houses of Parliament, and determined following consultation with clubs and leagues.

Let me set out why we believe the measure is necessary—not as an attack on agents or their role in the game, but as a proportionate, reasonable step towards a more sustainable, transparent and responsible football ecosystem. If we are serious about football reform and safeguarding the long-term financial health of clubs up and down the pyramid, we must be prepared to tackle the excesses and distortions that have taken root in the sport.

Few are more obvious or pressing than the spiralling sums paid to agents. According to the Football Association, in the year from February 2024 to February 2025, Premier League clubs alone paid more than £409 million in agent fees and intermediaries. That is more than the total broadcast revenue of a number of Championship clubs in 2022-23; or more than double the commercial revenue of several clubs for that season; or almost three times the matchday revenue of a number of Championship clubs in the same season.

This is not wages or transfer fees, nor is it investment in the matchday experience for fans—it is money paid out purely for representation costs, often for work done on both sides of a deal. To put that into context, it is more than the entire annual income of many Championship clubs combined, and this is not just a Premier League problem. Although the sums are relatively smaller further down the pyramid, the pressures are arguably even more acute for clubs with less budget.

My amendment seeks to introduce a straightforward principle—that there should be a fair and proportionate limit on the fees that clubs can pay to agents, and that the limit should be set by regulations made by the Secretary of State subject to affirmative procedure. This would help to ensure full parliamentary oversight and allow future Governments to adjust the cap based on changing market conditions, evidence from the Government’s regulator and broader economic factors in football.

There is already a strong precedent for this kind of intervention. For example, FIFA’s agent regulations now attempt to impose limits on the commissions payable to clubs and players alike, but those rules remain subject to legal challenge and uneven enforcement across jurisdictions. In the absence of effective international enforcement, there is an opportunity for this to be included in the scope of the Government’s regulator as a core part of the financial sustainability of English football.

[Mr Lee Dillon (Newbury) (LD)]

It is a pleasure to serve under your chairship, Mr Turner. I have sympathy with what the amendment is trying to achieve, but can the shadow Minister reflect on what it could do to transfers coming into the country? An agent working with Ronaldo could sell him either to an English club, where the fees are capped, or to an Italian, French or Spanish club, where the fees are not capped. Is there a concern that this would limit good players coming into the country?

[Mr French]

I discussed that consideration with a number of people in the game before we tabled the amendment. The hon. Gentleman mentioned the French, who already cap agents’ fees at 10%. With this amendment, we are not seeking to say what the level should be—that should be determined by the game in consultation—but we are looking for the game to help to set the cap at a level that does not have the impact that he talks about. But it is a fair challenge.

We must remember that the Bill is fundamentally about sustainability. Financial discipline is not just a boardroom concern, but a matter of public trust. Football clubs are more than private enterprises, as we have discussed. They are community institutions. They are the social glue in towns such as Bury, Scunthorpe and Southend, all of which have suffered financial distress in recent years. The idea that hundreds of millions of pounds can leave the game each year in opaque payments to third-party agents while clubs struggle to pay wages, maintain facilities or invest in their academies is becoming increasingly indefensible.

Let us be clear: no one is saying that agents do not have a role. Many provide important professional services, such as legal advice, contract negotiation and logistical support, but the current system lacks transparency, consistency and limits. There are countless examples of agents receiving commissions from both buying and selling clubs on the same deal—a structure that would raise red flags in other regulated industries as a clear conflict of interest. Without a cap, there is little to stop the agents’ arms race escalating even further.

Clubs are forced to pay inflated fees just to stay competitive in the transfer market. In some cases, they are backed into a corner by players who will not sign unless their representative is paid what they demand. That imbalance needs to be addressed, not with heavy-handed bans, but with clear, enforceable limits that ensure agent fees are grounded in reality and tied to the financial position of the English football pyramid. My amendment would allow for the cap to adapt over time, either up or down, depending on the financial context of the day.

This debate also has a clear moral dimension. Football fans—the lifeblood of the game—see money flooding out of the system into offshore accounts while ticket prices rise, lower-league clubs fall into administration, as we have heard, and local facilities are left to deteriorate without needed investment. What message are we sending to those communities if we continue to turn a blind eye to this major issue?

The problem is not new. Lord Sugar famously described agents as “ten percenters” during his time as chairman of Tottenham Hotspur. However, in recent years, that 10% has crept up; we now see cases in which agents walk away with fees amounting to 15% or even 20% of a transfer value, and in some instances with fixed payments that are totally unrelated to the value or complexity of the deal. That is not healthy, efficient or sustainable, and it is not a good use of fans’ hard-earned money.

This amendment is about putting the interests of clubs, fans and the wider game first. In fact, we believe that clubs in the lower leagues would stand to benefit the most. Although some clubs in the top flight can absorb these costs through commercial revenues or broadcast income, those further down the pyramid often spend a disproportionate amount of their limited budgets on agents. That creates a vicious cycle: less money for youth development, community outreach and infrastructure, and more dependence on short-term deals brokered by intermediaries. By capping agent fees, we would take a meaningful step towards ending that cycle. We could help clubs plan more prudently, negotiate more confidently and operate on a fairer playing field. In doing so, we would strengthen the whole system, from the grassroots to the elite.

Let us not forget that the purpose of the Government’s regulator is not to micro-manage football, but to restore public confidence and ensure long-term stability. Agent fees are a glaring blind spot in the current model. If we are willing to regulate ownership tests, financial reporting and fan engagement, surely we must also be willing to act on a financial outflow that directly threatens the viability of many clubs.

This is a proportionate, sensible and timely amendment. It allows the Government to tackle one of the most visible and controversial financial issues in football; it helps preserve flexibility; it respects Parliament; and, most importantly, it places the interests of our clubs, fans and communities above those of unregulated market actors. We have an opportunity to help reshape the financial culture of English football for the better. Introducing a cap on agents’ fees is not only a necessary reform, but the right thing to do.

--- Later in debate ---

[Stephanie Peacock]

We have seen too many instances of unsuitable custodians mismanaging clubs, taking risks that jeopardise a club’s long-term future, and disregarding the interests of fans and communities. It is evident that the industry’s existing tests have not been effective enough at screening and rooting out bad actors. Existing tests are conducted on a self-declaration basis, as the hon. Member for Cheltenham just mentioned. Consequently, those tests have allowed in owners who have long histories of business bankruptcies, and owners have later been imprisoned for crimes including money laundering.

That is why part 4 of the Bill establishes strong, new statutory owners and directors tests, including by giving the regulator the power to test the suitability of prospective new owners and officers before they can enter regulated clubs, as well as the power to test incumbent owners and officers in certain circumstances. The clause provides an overview of part 4 and signposts to the rest of the clauses in this part of the Bill. I commend the clause to the Committee.

[Mr Dillon]

It is a pleasure to serve under your chairship, Mr Turner. I thank my hon. Friend the Member for Wokingham (Clive Jones) for tabling new clause 15. It is the result of close co-operation between local parliamentarians and the Supporters Trust at Reading, which I have mentioned previously. I thank it for its constructive approach to the Bill.

The new clause mandates that individuals must notify the IFR if they are aware of any evidence that indicates a change in circumstances that could affect the ability of club owners or key personnel who are essential to the management and survival of football clubs to meet the statutory fitness criteria set forth in clause 26. It is widely recognised that whistleblowing is a vital tool for public scrutiny and accountability of individuals, and that wrongdoing and bad practice need to be called out. It is therefore essential that there are protections to encourage people to speak out. The new clause seeks to flesh out formal whistleblowing routes with regard to football ownership. Although I welcome and recognise the detail already included in the Bill on that, we need to go much further.

We need to expand the list of groups and stakeholders who would be required to report any concerns that they have about the suitability of owners or officers, including the governing body for the relevant league, the football supporters’ trust and the Football Supporters’ Association. It is often the case that those stakeholders have more knowledge about the day-to-day operations inside a club than fans, due to their proximity to the club’s inner workings. As many fans do not have the same connection or influence as such organisations, it is vital to provide a strong and accessible voice for them when issues arise, particularly when evidence concerning the survival of a club comes to light.

It is essential that the individuals listed in new clause 15 have the opportunity and route to escalate their concerns when necessary. If we take as an example my local EFL club, Reading, there may have been some people in the EFL and in the club itself who had suspicions about the deteriorating situation at the club long before those problems came to the surface and to the attention of the fanbase. If this new clause had been in place, it would have given stakeholders a formal route to raise such concerns and ensure that Dai Yongge was scrutinised properly. That could have gone some way to resolving the situation before the club ended up teetering on the brink; it is only recently that it has been sold and been able to recover.

To conclude, new clause 15 would enable accountability and monitoring of owners during their time in charge. Football club owners are temporary custodians of heritage assets that are vital to our communities; at the very least they should face regular scrutiny. It is for those reasons that I hope new clause 15 is accepted.

[Joe Robertson]

Once again, I have some sympathy with the aims of the new clause and I see where the hon. Member is trying to go with it. However, as it is currently drafted, it has a lot of breadth and contains vagaries that could throw up all sorts of issues. I will just deal with those issues briefly.

By the way, I like the idea of identifying “material change” to the extent that someone who may once have been considered fit and proper is no longer considered fit and proper, because of something that has happened or something that has been identified.

I have a problem with imposing a duty, particularly on some of the groups set out in paragraphs (a) to (f) of subsection (2). For example, there would be a positive duty on “club employees”, which would include some very junior members of staff. In English law, imposing a duty on someone to do something is fairly exceptional. Although I could probably tolerate imposing a duty on “officers and board members”—if people have attained that level within an organisation, they should expect duties to come with it—I could not tolerate imposing a duty on all “club employees”. That is a difficulty I have. Also, that list is not exhaustive. Subsection (1) refers to:

“ Individuals or organisations associated with a regulated club”.

That could capture a lot more people than those listed in subsection (2).

I am also slightly concerned that the duty for notification applies:

“when they”—

that is, the person—

“have evidence or information that a material change in circumstances has occurred”.

I suspect that that could open the floodgates and be misused as a means to try and potentially smear someone, or raise questions about whether they are fit and proper, based on some pretty spurious “evidence”. Such evidence could be pretty much anything—even a trivial matter. I would have hoped that there would be some sort of threshold, such as evidence that points to a strong or compelling case. “Evidence” on its own is a very, very low bar and could encourage all sorts of minor allegations that could make the job of the football regulator far bigger than it is intended to be.

Otherwise, I broadly support what the hon. Gentleman is trying to achieve.

--- Later in debate ---

[Stephanie Peacock]

Yes, absolutely. We very much want that confidence to be established. We simply do not think that regulating junior employees, supporters trusts or the FSA is appropriate or proportionate. On that basis, I would be grateful if the hon. Member for Newbury did not press the new clause to a vote.

[Mr Dillon]

Given the assurances of the Minister, I am happy not to move new clause 15. I thank the hon. Member for Rushcliffe for seeking clarification about the atmosphere that will be created.

Question put and agreed to.

Clause 26 accordingly ordered to stand part of the Bill.

Clause 27

Duties to notify IFR of prospective new owner or officer

Question proposed, That the clause stand part of the Bill.

Football Governance Bill [ Lords ] (Third sitting)

Lee Dillon Excerpts

Committee stage
Thursday 5th June 2025 Public Bill Committees

[Mr French]

I absolutely understand the point that the spokesman for the Liberal Democrats makes. One of the extreme examples, which he used, of Manchester United—if I remember correctly, the owner involved was one of the people who were coming out in support of a Labour Government before the last election, so it will be quite interesting to see what the Minister says about the behaviour of said advocate of the Labour Government in that regard. He makes an interesting point, because fans are being impacted by ticket prices; we all understand that. It is about, as I have consistently tried to say—it is a theme of our amendments—ensuring transparency about how the regulator is or is not impacting the game. We believe the amendment represents a fair and reasonable request—that someone marks the regulator’s homework so that we can understand the impact.

[Mr Lee Dillon (Newbury) (LD)]

It is a pleasure to serve under your chairmanship, Mr Turner. By what measure will it be possible to work out that the cost of the Independent Football Regulator has a direct consequence on the price of tickets? For example, a club could look to recoup any losses from a regulator by increasing shirt sales, or by putting 10p on a pint on the commercial sales that they get as part of their matchday revenue. Is this amendment more politically motivated, to try to pass blame on to the IFR for any matchday ticket pricing, rather than to understand the true cost of the independent regulator to football clubs?

[Mr French]

I thank the hon. Member for that intervention. As I said, it really is about transparency. We believe that we, as elected Members of this House, need to have an understanding of the impact that the regulator will have on the ultimate person, which in this case is the club’s fans. That is what the amendment seeks to do.

I understand the hon. Member’s point, and I did say that the causes of price increases are complex. I will not read out all the figures, but clubs’ costs have increased just this year, whether because of energy bills, national insurance or wages. We are concerned about the burdens and requirements that the regulator will impose on clubs increasing their costs and about those being passed on to the end fan, who is already under significant pressure.

Ticket prices are not an incidental issue; they are a barometer of whether the game remains accessible to its core community. We know that regulation drives up prices, through compliance costs, as I have said, and by reducing investment and squeezing margins even further. The Government must have the courage to recognise that and to adjust course if necessary by ensuring greater transparency about costs. Requiring the regulator to report on that, in its general state of the game report and its annual report, would embed an essential feedback loop in statue. It would ensure that the impact on fans was not an afterthought, but a standing obligation for the regulator.

It is not enough for the Government’s regulator to simply say, “We have improved governance and we ensure sustainability,” if we then learn, in the same breath, that the average family can no longer afford to attend any more games. Football cannot become financially sustainable by pricing out its own supporters: I suspect all Members would agree on that point. I would add that ticket affordability is a deeply traditional concern. It goes to the very heart of football’s place in English lives. Fans must not be priced out of their favourite club in the name of regulation. If we forget that, we forget the point of the Bill, which is the fans.

Let me also stress that the amendment does not restrict the regulator. It does not tie its hands; it simply requires transparency. It says to the Government’s regulator: “If your actions are driving up the cost of entry to the game, tell us, tell the fans and tell Parliament.” Then, we can at least have an honest discussion in this House about whether those actions are justified or proportionate. That is especially important when we consider that many of the regulator’s decisions, whether on licensing, financial rules or ownership models, will almost certainly have financial consequences. Clubs will find ways to balance their books, as the hon. Member for Cheltenham just intervened to say, and if the regulation increases their fixed costs, the easiest lever to pull is ticket price. That is not conjecture; it is basic economics—although we know that some members of the Labour party struggle with that.

In the end, these two amendments ask only that we shine a light on the question that supporters ask every season: “Why is it getting more expensive to watch my club?” If relegation is part of the answer—[Interruption]—or rather if regulation is; relegation is definitely part of the answer—then we have a duty in this House to know and to ensure that we make laws that shine a light and ensure transparency for everyone to understand.

--- Later in debate ---

[Mr Dillon]

Supporters’ trusts and football fan bodies across the country support the establishment of a regulator, because they can see what the greater good is. Does the hon. Gentleman not accept that, even if there was a small increase in ticket prices, fans across the country would rather that there was a regulator tackling the systematic issues of football and accept that a small charge might be added to tickets? Their driver is for fairness across the game.

[Mr French]

That fans would be happy to accept higher prices is a brave argument to make, and it is not one that we are willing to accept. More broadly, we believe that Parliament must be able to scrutinise how much regulators, whether they are arm’s length, more direct or independent—however we label them—cost taxpayers and, in this case, fans. We believe that the sovereignty of this House demands a transparent report that Parliament and the public can analyse. We must understand the impact on ticket prices for fans. As Conservatives, we will stick up for fans today.

Question put, That the amendment be made.

Football Governance Bill [Lords] (Fourth sitting)

Lee Dillon Excerpts

Committee stage
Thursday 5th June 2025 Public Bill Committees

[Mr Betts]

That is a really helpful response. It says to the regulator, “These are your timeframes, but if things change, you should listen to the views and voices of the stakeholders in the game,” and something could be done more quickly. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Mr Lee Dillon (Newbury) (LD)]

I beg to move amendment 139, in clause 10, page 7, line 22, at end insert—

“(iia) supporters trusts, fan groups and individual fans;”.

This amendment adds fans and fan organisations to the list of groups that the IFR must consult about a state of the game report.

It is a pleasure to serve under your chairship, Ms Butler.

The amendment seeks to ensure that the heart of football, the fans are remembered and properly considered, and that their voices are heard throughout the Bill. The state of the game report is a key output of the new regulator. It will provide comprehensive assessment of how football is functioning. It will help to set the direction of future policy and regulation, and will be a key measure of accountability for the sport as a whole. Given that, it is essential that fans should have a say.

Week in, week out, fans give their time, money and hearts to the clubs that they love, and yet too often they are the last to be consulted and the first to be overlooked when decisions are made about the future of our national game. The amendment is about changing that. It is about ensuring that the voices of supporters are formally recognised in the process of shaping the game’s future.

Supporters trusts play a key role here. They are often the bridge between clubs and fans, with a working relationship on both sides. They are well placed to represent fans’ views in a constructive and organised way. I recently met STAR, the Supporters Trust at Reading, which represents Reading FC, the closest professional league club to my constituency. Over the years, I have been to many games as a fan, and I have seen at first hand how passionate and committed the supporters are to improve the club and represent their fellow fans. Supporters trusts such as STAR are well placed to act as that bridge between the clubs and their fanbase.

We also recognise that not every fan may agree with their trust. That is why the amendment also allows for individual fans to be heard directly where necessary. It is vital that the Bill is amended to ensure that the independent football regulator listens to supporters when assessing the health and direction of the game through the state of the game report. By formally including fans and their organisations in the consultation process, we ensure that their lived experience, insight and passion are properly reflected in how the game is monitored and improved.

[Mr French]

The amendment, as explained by the hon. Gentleman, seeks to add supporters trusts, fan groups and individual fans to the list of those whom the independent football regulator must consult about the state of the game report. We have absolutely no problem with the principle of consulting fans in that context, and we would expect the football regulator to wish to do so in the due course of its business, for reasons we explained in other parts of the Bill. I suppose there might be some concern about how long the consultation would take if it had to consult every individual fan, as suggested by the hon. Gentleman, but we will await the Minister’s comments to understand that in the context slightly more.

--- Later in debate ---

[Stephanie Peacock]

I am grateful to my hon. Friend for that comment. The intention of the regulatory principle is not to list every possible stakeholder that the regulator should ever engage during the course of regulation. That would be a slippery slope to an enormous list that risks missing persons off. Rather, the broader group of those affected by decisions are captured by this provision, even if they are not explicitly mentioned. That is why I am very pleased to give those assurances to my hon. Friend the Member for Sheffield South East.

[Mr Dillon]

I am grateful to the Minister for her response, and I thank the hon. Member for Sheffield South East for drawing that conclusion from the Minister in his useful remarks. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Stephanie Peacock]

The state of the game report will allow the regulator to better understand the finances and economics of the industry and its individual clubs. This, in turn, will inform the regulator’s approach and decision making across the regulatory framework.

Clause 10 requires the regulator to publish the report and sets out the topics that it must cover, including an overview of the main issues affecting English football and whether any features of the industry are jeopardising the regulator’s ability to deliver its objectives. These are deliberately broad and non-specific topics, affording the regulator some discretion as to what to cover. In essence, this means that the regulator can cover any matter that it considers relevant at the time, providing it relates to the functions of the Bill.

I would like to take this opportunity to provide further reassurance to my hon. Friend the Member for Sheffield South East on his earlier amendment. We would expect at this stage for it to include distributions, and powers lie within the Bill for the regulator to do that. I want to put that on record once again, further to our earlier debate. It will depend on which issues and features of the market are relevant to its objectives and the regulatory regime at any given time. However, the report is still constrained by its link to only matters relevant to the regulator’s function, so I reassure the Committee that this cannot be an avenue for scope creep.

The clause also requires the regulator to publish its first report no longer than 18 months after the competitions and scope of the regulation have been specified by the Secretary of State, as we have discussed. Subsequent reports must be published at least every five years after this but, as we have just debated, they could be more frequent if the regulator considers it appropriate. These timeframes balance the importance of a timely first report with giving the regulator time to undertake the necessary in-depth analysis.

Finally, the clause sets out clear consultation requirements, including an open process of inviting suggestions about the issues to be included in the report, as well as targeted consultation on a draft report, which I hope speaks to some of the comments from the hon. Member for Newbury on his previous amendment.

--- Later in debate ---

[Mr French]

I genuinely thank the Minister for clarifying. We have to understand the context in which the Bill is operating. As I said earlier, the Bill is being made not in isolation, but in a complex international football ecosystem. We have to be mindful of that in everything that we do in this Committee and in the legislation that goes forward. Will the Minister therefore accept that, even if she does not believe that it will happen, if her regulator is perceived to be exerting influence and undermining the independence of English football, both international governing bodies will exclude English teams? I want to confirm that the Government understand those risks.

Much like the Secretary of State’s failure to declare her interests in relation to her appointee to the chairmanship of the regulator, who we know donated to her, this is about the perception of undue influence and the impact that will have on how the independence of English football is viewed internationally. If UEFA and FIFA perceive that there is undue influence from whoever the Government of the day may be, they will act, as I explained already with the example of Greek football in 2006. I hope that, as the Secretary of State has now done, the Prime Minister will make sure to declare any relevant interests, as we know that the chairman also donated to his campaign.

I believe that the Minister confirmed that she understands that there is a real risk that we have to be mindful of and that if the regulator breached independence, the entirety of English clubs’ participation in Europe, and the jobs and significant revenues that come alongside that, would be at stake. That is why I have tabled amendment 113, which would require the football governance statement prepared by the Secretary of State to be approved by Parliament before it could have effect. That is a vital safeguard to prevent the perception that any Government of any colour have direct influence over the regulator.

[Mr Dillon]

The shadow Minister may be coming to this point. His amendment states,

“No football governance statement may have effect unless approved by resolution of both Houses of Parliament”,

but on the other hand he argues for more independence for the regulator. Surely Parliament and, by extension, political parties having to vote for a resolution would introduce more politics into the independent regulator.

[Mr French]

I thank the hon. Gentleman for the intervention, but I am speaking very clearly about the interference of Government in football. That is very different from how Parliament acts in creating this statute and being able to check that the regulator is not putting clubs at risk, as I have said before. It is about Parliament having its say, rather than just delegating powers to the Secretary of State of the day.

By requiring that Parliament approve the statement, my amendment would ensure two things. First, there will be proper scrutiny of the Government and their policy. Mr Speaker has recently had to remind the Leader of the House, because of the way the Government have continued to ignore it, of paragraph 9.1 of the ministerial code, which states:

“When Parliament is in session, the most important announcements of government policy should be made in the first instance in Parliament.”

The amendment would require the Government to come the House to present and defend their policy, instead of hiding behind media briefings or social media posts.

Secondly, the amendment would help to mitigate UEFA’s and FIFA’s concerns about the direct influence of Government over the independence of English football. Accepting the amendment and inserting Parliament into the equation would make the regulator much more palatable for the international governing bodies.

I hope that members of the Committee will accept the amendment for what it is: an attempt to ensure that no Government of any colour can be the cause of English football’s exclusion from European or international competitions. There will come a day—the sooner the better, in my opinion—that the Labour party is no longer in government. Labour and Liberal Democrat Members must therefore be realistic, practical and honest about the situation. When there is a different Government in place, will they accept the risk of that Government being the reason that the Three Lions cannot play in the World cup, or the reason that English clubs—from Cheltenham to Barnsley or Welling, or perhaps Sheffield Wednesday —cannot compete in European competitions? That might seem a remote prospect at the moment, but it is the ultimate aim of every club to be in such competitions. That is at risk without this amendment.

If hon. Members are being honest with themselves, their constituents and football fans across the country, the answer will be clear, and they should support my amendment to help to protect English football and give Parliament a greater say.

--- Later in debate ---

[Stephanie Peacock]

I thank my hon. Friend the Member for Sheffield South East and the hon. Member for Cheltenham for tabling new clauses 2 and 6. The Government recognise the intent behind them, and we agree that the regulator should help clubs to comply with regulation as much as is reasonably possible. It is in everyone’s interests for clubs to become compliant quickly and with as little additional burden as possible. It is vital that the regulator helps clubs get to grips with its regulatory regime, which is why we have been very clear that the regulator will operate an advocacy-first approach, and why provisions for a collaborative approach are already in the Bill.

For example, the regulatory principle of clause 8(b) encourages the regulator to co-operate and constructively engage with clubs. Regulatory principles (c) and (d) encourage the regulator to ensure that any action is proportionate to the benefits expected from it.

In relation to the specifics of the new clauses, we disagree with any provision that would require the regulator to provide financial assistance to clubs to comply with requirements imposed by the regulator. That would amount to redistribution by the back door, given that the Independent Football Regulator would be levying some clubs in order to provide financial assistance to others. That is not the regulator’s role, and we do not believe it should be. On training, the regulator can work with clubs to ensure that they fully understand the regulation and what is expected of them. Of course, in cases where this is necessary, the regulator can appoint a skilled person to assist the club in resolving issues in respect of a relevant infringement. For the reasons that I have outlined, I am unable to accept the new clauses and I hope that they will be—

[Mr Dillon]

I seek further clarification from the Minister. Subsection (1)(c) of both new clauses refers to

“unregulated clubs who are reasonably likely to become regulated clubs in the next football season.”

They would stand outside the remit of the Bill if unamended, but would the Minister’s view be that the regulator should engage with those clubs that may be just about to come into the regulated area?

[Stephanie Peacock]

That is a really good question. The regulator can engage with clubs outside of scope, such as those in the National League North and South, to assist with the application process. I hope that answer gives clarity. It is a very good question from the hon. Gentleman. However, for the reasons that I have set out, I am unable to accept the new clauses, and I hope that they will be withdrawn or not pressed.

--- Later in debate ---

[Mr French]

No, I do not, and I think the hon. Member slightly misunderstands what the measure is about. It is about the provisional licence, not the full-fat licence. I am not asking the regulator to rush a decision on whether a club should be granted a long-term licence. We are asking for some certainty and some time limits to help with that bridging. We have already said that we are concerned about the size of the regulator, but we want clubs to have some certainty around timeframes and not to be left in limbo for too long.

Our belief that clubs should have certainty was why we tabled amendment 101, which would establish a time limit of one month for the Government’s regulator to decide whether it will grant a provisional operating licence. This is supposed to be the main focus of the regulator, so we believe that it is reasonable to expect that it fulfils that function efficiently. This would be an important and proportionate safeguard. It would not diminish the regulator’s authority, but rather ensure that it is exercised in a timely, effective and accountable manner. It is about introducing clarity, certainty and discipline into a process that, under the Bill as drafted, risks becoming needlessly opaque and potentially open-ended.

We must remember what the provisional licence mechanism is designed to achieve. It is not the final or comprehensive licence that will be granted to a club, as I have just said. It is a stopgap—a holding measure meant to ensure continuity of operation for clubs while their full licensing application is under assessment. In short, it is there to prevent disruption, not to prolong it. Thinking about the footballing element to this, a club that was held in limbo, unable to play, would create a lot of issues for the league and the season overall.

As it stands, the Bill provides the Government’s regulator with no firm timetable or obligation to act within any defined period when it comes to a provisional licence. That raises two concerns. First, it risks leaving clubs in regulatory limbo, especially those already in difficult situations. That is not just a matter of administrative inconvenience. For clubs living hand-to-mouth, as many sadly are, uncertainty over their licensing status could mean missed deadlines for investment, lost commercial deals or even delays in paying staff and suppliers. In the worst cases, it could trigger crises and the very things that the Bill was supposed to prevent.

[Mr Dillon]

The shadow Minister outlined a number of deadlines that come up, but another of the deadlines in football is transfer windows. The ability to be granted a provisional licence would allow clubs more certainty to make signings and not fall foul of deadlines.

[Mr French]

I thank the hon. Member for that point. Transfers are a key aspect. If a club is in limbo, it could arguably be at a much bigger disadvantage when the season starts if it had not been able to make transfers because it was uncertain about whether it could compete in the competition. The point is well made.

Secondly, the absence of a defined period creates a lack of accountability within the regulator itself. As we have discussed, the regulator cannot be scrutinised in the way that we would have hoped. We know that the Government do want it to be strong, but with strength must come accountability and transparency. If it is to command the trust of fans, clubs and local communities, it must be seen to act with purpose, not with delay.

We know from numerous examples across different industries that when regulators are left without timetables, backlogs just build up. I will not name examples because I am conscious of time, but we know that it happens. My amendment proposes a time limit of one month—a full 30 days—for the regulator to determine whether a provisional licence should be granted. That is not a rushed timetable; we believe that it is a reasonable one, especially considering that when a club applies for a provisional licence, the key facts will likely already be known by the regulator. Again, this is not designed to be a forensic financial autopsy, but a short-term stabilising mechanism.

Let me also be clear that the time limit does not bind the regulator to approve an application within a month; it simply requires a decision one way or another within that time. That allows the Government’s regulator to reject unsuitable applications if needed—hopefully not—but it removes the damaging uncertainty of a process that otherwise could drag on indefinitely. We must not forget who bears the cost of delay. It is not just the club executives and directors, but the fans, players and staff. We have just heard about transfers, which are a great example. It is about the people who turn up on a Saturday afternoon come rain or shine, the people who run the club shop and the ticket gates, and the people whose local economies benefit from having a club that is alive, operating and secure.

The amendment also supports the broader aim of stability in football. A system without timelines invites inconsistency and subjectivity. One club might be processed in a week, and another in six. That cannot be right. We owe it to clubs at all levels, from the top of the Premier League right the way down to the National League, to create a system that is predictable and fair.

Finally, good regulation is not just about the rules but about responsiveness. It is about a regulator that can act promptly, efficiently and in partnership with the people it is overseeing. Our amendment does not weaken the regulator; it makes it better. It strengthens the trust between the regulator and the regulated. It gives clubs the certainty that they need to plan, invest and survive. After all, that is what the Government say is the intention of this regulator. I hope that hon. Members will support the principle behind the amendment. We have heard some of the issues that may arise if not.

Football Governance Bill [ Lords ] (First sitting)

Lee Dillon Excerpts

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Jim Dickson (Dartford) (Lab)]

I am a Crystal Palace season ticket holder.

[Mr Lee Dillon (Newbury) (LD)]

I sold my shares in Manchester United to the phoenix fund, which exists to buy the club if it ever comes back on the market.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)]

For clarity, my interests are declared in the ministerial register.

Football Governance Bill [ Lords ] (Second sitting)

Lee Dillon Excerpts

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Mr French]

I appreciate those comments. We will come on to conflicts of interest, and it is a question that I will put to the Minister, because the Committee and the House have to be clear and confident about what a conflict of interest might look like for the regulator. We will come on shortly to appointments to the expert panel. In such appointments, if there are no clear lines of accountability on what we believe to be conflicts of interest, I fear that we could have a situation like the one we have just had with the chair, in which the Government did not feel that there was a conflict of interest, but most people observing the appointment would say that there was a quite clear conflict, given the donations to the Prime Minister, the Secretary of State and the Labour party. Those are the points we are making, and I am happy to debate the matter further as we make progress. I have given the Minister some extra reading time on what I plan to ask about conflicts of interest.

A crucial point was made about how boards work differently in different sectors, and about whether conflicts are transcribed early on, so that everyone understands what we believe a conflict of interest is. We want to ensure that there are no vested interests in the process and that no one side will benefit from the simple fact that a chair is interested in that same side; that is the point my hon. Friend the Member for Spelthorne made. By accepting the amendment, alongside our other amendments, the Committee could ensure total independence of the chair of the regulator both from this Government and from industry insiders. That is our objective.

Amendment 114 would make it explicit that there must be a system for the chair of the board to declare their relevant interests. As we have discussed, this needs to be explicit within the Bill because of how the Government have conducted themselves in the appointment process. We have seen that this Labour Government cannot be trusted to run the process properly or ensure that full and proper declarations are made. The amendment would make sure that nobody in this Government’s regulator can avoid being transparent with the public on their conflicts of interest. This amendment has become necessary because of the Government’s actions and their disdain for Parliament and public accountability.

It could be argued that the Secretary of State has hidden her interest in the appointment process to date, especially because she did not declare her interest on Second Reading. This amendment would provide much-needed transparency on the future of the regulator and its chair, whoever he or she may be. I would like to think that Ministers are in favour of full and proper transparency, unless there is something that the Government wish to hide from us. As I said, we found out about the donations only at the last minute, through a declaration made to the Culture, Media and Sport Committee. This House would not otherwise have known. It troubles me deeply, regardless of which parties were involved, that Members made decisions without knowing about the donations.

Alongside amendments 117, 118 and 114, I have tabled amendment 115. As I have said repeatedly, this Government’s behaviour throughout the process has been nothing short of a disgrace. We found out about the appointee’s donations to the Prime Minister and the Secretary of State only via a Select Committee, and we did not know about them on Second Reading.

Without the appointee’s last-minute admission, we would have been in the dark. We do not know whether the Secretary of State would have been transparent about the donations she received. She has now recused herself, but we must remember that she nominated that person for the Select Committee’s consideration, which is a really important point that I am sure the independent Commissioner for Public Appointments will look at closely. We cannot allow this sort of cover-up to continue, as we need a sustainable independent regulator. Amendment 115 would make it clear that political donations should be declared as a relevant interest, as they have been proven to be by this Government.

I have also tabled amendment 116, which would ensure that politics is kept out of football. This debate is making me very uncomfortable as a football fan. I do not believe that politics should be anywhere near football, and it is because of this kind of issue. This has brought football into disrepute, and it is not just me saying that—it is across all the sports pages.

I am concerned about politics being dragged into football, and this amendment would require that the chair is not a member of a political party and does not publicly campaign or demonstrate support for one. It has been drafted in line with other such roles where chairmen are required to be politically neutral. Again, I believe this is common sense, and I hope all Members would support it.

Once again, this is an issue of trust and of establishing the true independence of any football regulator brought in by this Government. Requiring the chair of the board not to be a member of a political party or to campaign in a political way would protect the integrity of football and the regulator.

[Mr Lee Dillon (Newbury) (LD)]

It is an honour to serve under your chairship, Sir Jeremy. Amendment 116 also says that the chairman must not campaign

“on behalf of a candidate”,

which also applies at a local authority level. The regulator could have a friend standing as an independent candidate for a council. That would not be party politics, but the regulator would be barred from canvassing at a super-local level on a “save our local hospital” campaign, which really has no relevance to the football governance role that they hold. Does the hon. Gentleman not feel that his amendment would too greatly impede the regulator’s ability to express their democratic rights in society while holding the role?

--- Later in debate ---

[Lincoln Jopp]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I wish the Committee to entertain a semi-hypothetical set of circumstances. I have spent many minutes googling in order to find the only club in the Football League represented by a Conservative Member of Parliament—the mighty Bromley, as I am reminded constantly by my good and hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune). I think he said in the Chamber that visiting supporters have started chanting, “You’ve got the only Tory.”

This is a very particular set of circumstances—there is only one. Bromley has done jolly well this season. Let us just hypothetically suggest that they caught the eye of a very wealthy potential new owner, which would bring riches beyond belief. That would come under the strictures of this Bill in terms of change of ownership. Let us suggest that, in carrying out its normal duties, the football regulator questioned, delayed and, finally, denied that change of ownership.

If the football regulator was a paid-up member of another political party and a donor to that other party, does the Committee not understand that the perception would be that part of the reason the regulator had come to the conclusions that it had was political? That is what we are trying to avoid with the amendments. I ask Committee members to reconsider, in order to give the regulator the best possible chance of success.

[Mr Dillon]

Seb Coe is a successful leader of sports bodies in this country and of our 2012 Olympics. He is a former Conservative MP and peer. I saw him act with integrity and did not question his political past. Why can people not act with integrity and be members of political parties? This is looking to spin a political angle when there might not be one at play.

[Lincoln Jopp]

If people appointed to regulators and quangos have fully declared what they have done, ab initio, that does a lot to dampen down concern about partiality. It would be nice to see the Government select someone for one of these appointments who was not a donor at the last election.

--- Later in debate ---

[Mr French]

I beg to move amendment 120, in schedule 2, page 89, line 9, leave out subparagraph (3) and insert—

“(3) The IFR may pay a person appointed as the Chief Executive no more than £172,153 per annum.

(3A) Notwithstanding the remuneration of the Chief Executive Officer as per paragraph (3), the IFR must pay its employees such remuneration as may be determined by the non-executive members.”

This amendment limits the pay of the Chief Executive.

It is a pleasure to continue to serve under your chairmanship, Sir Jeremy—I have not said it in a while—even if you have given me a yellow card. At least in football that does not mean the sin bin, so I can keep playing.

Let me explain why the amendment is important. In doing so, I will stick to the principle of trying to play not the man but the ball. We tabled the amendment to make sure that taxpayers and fans get value for money from the Government—in what would be a first since their election. It would limit the pay of the chief executive of the Government’s regulator to make sure that they are not paid more than the Prime Minister. Who would argue with the principle that the chief executive of a regulator should not be paid more than the Prime Minister of this country, whatever you think of him or her at the time?

It is a fair amendment that would also ensure that non-executive board members determine employees’ pay, instead of the chief executive by themselves as an employee of the regulator. We believe the Bill will create a conflict of interest if it is left solely to the chief executive to determine pay, as the chief executive would be able to determine their own pay increases as part of the package, unless it was done independently by non-executive members of the board.

[Mr Dillon]

I seek clarity. The shadow Minister said that the chief executive would not be able to negotiate their own pay, but if they were already at the limit and they were appointed on a rate of £172,153 per annum, they would not be able to receive any inflation increases, because the amendment would tie the pay not to the Prime Minister’s salary but to a specific value.

[Mr French]

I am happy to answer that question, because I believe the figure should be considerably underneath that rate. The amendment would allow pay to go up to the cap, but I am not saying it should be a target. This is similar to the slight difference in understanding about the previous amendment. We are not saying that it should be that artificial figure; we are saying that we believe there should be a cap that is not above the Prime Minister’s current salary.

[Mr Dillon]

Proposed new sub-paragraph (3A) says:

“Notwithstanding the remuneration of the Chief Executive Officer”,

and it does not say whether any other members of staff could be paid the same as the chief executive, so it would do nothing to limit the costs of the operation—they could all be offered £172,000 a year. Part of the shadow Minister’s argument is about cost saving, but there are no arbitrary limits on other members of staff in the organisation.

[Mr French]

I disagree with the hon. Member’s interpretation. It is quite commonplace for the chief executive to be the highest paid member of staff in most organisations. In my experience, it would be highly unusual for members of staff underneath the chief executive to be paid more than them.

--- Later in debate ---

[Mr Dillon]

I rise in support of new clause 1, which starts by saying:

“The IFR must establish and supervise a scheme aimed at providing…support to any person who has developed a neurodegenerative condition”.

The hon. Member for Old Bexley and Sidcup referred to an existing scheme run by the Premier League, which initially put £1 million into the pot, and I accept that £1.4 million may have been spent. However, Nobby Stiles’s care was £125,000 a year, so that fund would help only a handful of players.

If we look at the money in the game, there is £10 billion in Premier League TV rights and the PFA has £50 million in cash assets. John Stiles, Nobby Stiles’s son, is on record as saying that the PFA is not working with them enough. The PFA union derives an income of £26 million a year, and shirt sales in this country generate £200 million a year. The money already exists within the game to fund this at an appropriate level—more than the Premier League agreed when it set up its fund.

This scheme also has the support of the Football Supporters Association. We know from evidence that footballers are four to five times more likely to suffer devastating conditions such as Alzheimer’s, motor neurone disease, Parkinson’s and chronic traumatic encephalopathy, which was found to be the cause of death in Nobby Stiles’s post-mortem.

[Mr French]

To be clear, I was not taking a particular side. I was just explaining that funding is already available. I understand the hon. Member’s point about whether the funding is adequate.

On Nobby Stiles, the footballs that people play with are materially different from the ones that were played with in 1966. I ask in good faith: is the hon. Member leading this conversation to a potential ban on heading the ball in games, or is it just about the distribution of financial support for players?

[Mr Dillon]

I have a football at home signed by Sir Geoff Hurst, so I know exactly how heavy those old balls were, particularly when they got wet. We have seen coaching improvements so that children no longer head the football. That has come about because of the experiences of footballers who played in the ’50s, ’60s, ’70s and ’80s. The Lib Dem spokesman referenced a game at Southampton in the early ’90s, when the football was not too dissimilar to the modern football. I can remember kicking it around at the park myself.

I am not in favour of banning headers in games. I would like to see a fully funded and legally compelled scheme set up to protect footballers who have suffered from playing the beautiful game and to support their families. Footballers of previous generations were not paid anywhere near what current footballers are paid. I would also like more research on preventive measures. Without the players, there is no game. We have to support our former players while protecting our future ones.

[Joe Robertson]

I commend the hon. Member for Cheltenham for speaking to amendment 1 and new clause 1. He said that this may not be the right place or the right Bill to do so, and I probably agree with him. Nevertheless, this is a helpful opportunity to acknowledge the issue, and it is timely given that there is a debate on dementia care in the Chamber right now. Until I entered this place, I worked for a national dementia care charity that was looking at the possible link between heading footballs and dementia diagnoses.

This debate is also timely because, almost at this hour as I understand it, an APPG is being set up to look at dementia in sport. While this amendment may not be successful, it is nevertheless very timely. I commend the hon. Member for raising the issue.

Football Governance Bill [Lords]

Lee Dillon Excerpts

2nd reading
Monday 28th April 2025 Commons Chamber

[Mr Lee Dillon (Newbury) (LD)]

I draw Members’ attention to my membership of the football APPG and the women’s football APPG, which both exist to safeguard and improve the game that we love. I have also attended various briefings by interested organisations, such as Fair Game.

It is clear that there is wide support for the principle of establishing a regulator for football. It was in the Conservatives’ manifesto, and the Labour Government are delivering their own manifesto commitment, but the Bill is also welcomed by the EFL and the Football Supporters’ Association. There is even some support from the Premier League, so I am confident that it will pass its Second Reading later. Once enacted, it will help us to sustain our truly national game.

There are over 14 million grassroots players, including me—still—and over 40,000 association football clubs. Football brings people together on a weekly basis to celebrate, to commiserate and to enjoy the unfolding drama that only sport can deliver. Football is also crucial to our local economies and local identities, but too many clubs are facing uncertain times, which is why I support the Bill’s focus on financial sustainability, the ownership of clubs and fan engagement. Had these areas of focus already been realised, my nearest EFL club, Reading FC, would not be in the situation in which they currently find themselves. That is why this Bill is needed. We cannot let something of so much social and economic value be unregulated, and this Bill can improve the connection between fans and clubs, and protect their heritage.

The first half of this Bill’s legislative journey has now been completed. Although the Government did not formally accept any Opposition amendments from the other place, the Bill has been improved. I welcome the amendments that have been made, including the requirement that board members and expert panel members must declare their interests, greater inclusion of players and fans, the introduction of a social responsibility duty, and the inclusion of a club’s contribution to the economic and social wellbeing of its local communities.

Football clubs must be held to account. Selling off assets such as car parks and training grounds, transferring ownership of the stadium or even selling the trophy cabinet cannot be allowed to happen.

[Dr Danny Chambers (Winchester) (LD)]

What’s that?

[Mr Dillon]

A Tottenham fan would be able to sell the dust.

Although football clubs are owned by wealthy individuals or investment groups, they belong to their communities. Financial fair play has created unintended consequences such as selling home-grown players to get greater profit, or selling off a women’s team as an accounting trick. As the legislation progresses, we must ensure that it does not do the same.

One area where there has been criticism of the Bill is the unintended consequence of increasing ticket prices. That was raised in the other place, and I note that the reasoned amendment, which would decline to give the Bill a Second Reading, also raises this issue. My team, Manchester United, who were joined by Liverpool as 20-time league champions yesterday, have already increased ticket prices, without consulting the fans, due to the level of debt. That debt has not strengthened the club, the fans did not ask for it, and it has only benefited the owners.

The main focus of the Bill is to ensure the financial sustainability of the English game, so with less debt and more money going through the football pyramid, I do not hold the view that the regulatory burden will increase ticket prices, and paragraph 4(2)(c) of schedule 4 to the Bill gives fans a legal right to be engaged on ticket pricing. I support the principle of the Bill, but I want to explore how we can work with football clubs on fairer dynamic pricing, concessionary ticket pricing and the cost for away fans, alongside how fans can own a meaningful stake in their clubs.

Finally, I accept that the women’s game is not covered by the legislation, but the Secretary of State has the power to bring it into the new regulatory regime. In Committee, I will seek more concrete commitments on what trigger is needed for that to happen, as the financial success or otherwise of the men’s game is already impacting on women and girls’ ability to play organised football, and I will ask colleagues to explore these six areas.

Gambling Act 2005 (Monetary Limits for Lotteries) Bill

Lee Dillon Excerpts

2nd reading
Friday 24th January 2025 Commons Chamber

[Wendy Chamberlain]

My hon. Friend has just exemplified what I said earlier. Every single one of us has probably attended drop-ins in Parliament and seen the benefit of charity lotteries in our local communities.

Fundraising is not a one-off thing. There will be other projects that were not successful in getting funding, or all the funding they needed, because it has not been available under the current system. I would like to bring in some of those charities’ voices directly. I hope the Minister is aware that before Christmas, over 100 charity leaders wrote to the Prime Minister asking him to support my Bill. They pointed to the absurdity of charity fundraising being restricted. They noted, and I have to agree, that

“supporting this vital reform would send a strong message on the Labour Government’s backing for, and belief in the third sector and a vibrant, well-funded society.”

I spoke with one the signatories of the letter, Children First, earlier this week. It said:

“In a financial climate that is more challenging than ever, we rely on charitable fundraising to deliver the essential services we provide to children and families across the country. Importantly,”—

and I think this is a very important point—

“the unrestricted nature of the funding means we are more able to use the money in the most effective way for children and families, bridging gaps in the ever-complex funding environment. Many of our services rely on a jigsaw of income, sometimes stretching to 20 different sources all with conditions, data gathering and reporting requirements. This, in turn, has an impact on how much we can do for the children and families we support as time and energy is locked into sustaining funding as opposed to supporting families.”

[Mr Lee Dillon (Newbury) (LD)]

My hon. Friend talks about the financial pressures that charities face. Volunteer Centre West Berkshire has said that charities in West Berkshire will need to find an additional £383,000 next year just to stand still, because of the increase to the minimum wage and national insurance contributions. With the Government causing charities concern through national insurance, does she agree that her Bill would allow them to ameliorate some of that harm?

[Wendy Chamberlain]

Yes, I absolutely agree. Indeed, in a Westminster Hall debate just last week, where the shadow Minister, the hon. Member for Isle of Wight East (Joe Robertson), also spoke, I highlighted that very thing: the national insurance increase will hurt charities, and there is an opportunity for the Government, through my Bill, to ameliorate some of that.

Children First also said that it understands that technical barriers place limits on the way that charity lotteries provide funds and that it supports calls to remove the cap. There are about 170,000 charities across the UK. Of course, not all of them want or need charity funding, but many thousands do.

There are many reasons why the House should support the Bill. I understand some of the Government’s concerns. I have been told that they are worried about the impact on the national lottery, considering the Secretary of State’s statutory obligation to maximise its success. However, I would argue that there is no evidence to suggest there is a detrimental impact on the national lottery from charity lotteries. The Gambling Commission has investigated this three times in the last 15 years, most recently in October 2017, and found no statistically significant effect of charity lotteries on national lottery sales. That was confirmed again in 2022 in an impact assessment by Regulus Partners.

My goal with the Bill is to keep the distinct nature of the national lottery by protecting its much larger prize pots. This weekend, the lotto’s prize is £4 million, while the Euromillions’ is £83 million. In changing the law on sales, we want to change the current price cap to keep the prize maximum at £500,000. It is a very different ball game, and the Bill supports the evidence that players of one lottery often play the other as well.

I know that the Government are awaiting updated research. I suggest that the Government choose to progress my Bill today and consider the research at Committee stage or later. From my conversations with the Minister, I understand that the Government are determined to hold their current position that they want to see the evidence first. I hope that the Minister will confirm the commitment to make the research public when it is received and to update the House on the Government’s review of the research before the summer recess. I hope she will then set out any legislative action the Government are prepared to take.

I know that the Minister supported these reforms in opposition and is therefore sympathetic to the purpose of the Bill. I am sure she is aware of the money charities in her constituency have benefited from and will continue to benefit from. The Station House Community Association in her constituency notes the following in a project description:

“this grant has supported our running costs—just like everyone else all our bills have increased and we need to cover these costs.”

As my hon. Friend the Member for Newbury (Mr Dillon) highlighted, this is an issue we hear everywhere, particularly now that charities are faced with the additional cost of national insurance contributions. Increased fundraising to counterbalance these additional costs will be increasingly vital over the years ahead if charitable projects that we all champion are to survive. The Bill offers a way for the Government to support such charities, and at no cost to the taxpayer. It is a win-win in my view.

Before I finish, I would like to touch on gambling harms. I am a strong believer in reforms to the sector to protect people from problem gambling. Public Health England has said that there are more than 400 gambling-related suicides a year and that it costs the UK £1.4 billion. Extrapolation of this data by Gambling with Lives suggests that up to 650 gambling-related suicides take place across the UK each year. My party wants to see a compulsory levy on gambling companies to fund research, education, treatment, restrictions on advertising and the establishment of a gambling ombudsman.

The seriousness of addictive, problem gambling cannot be underestimated. I want to outline the steps that the People’s Postcode Lottery takes to tackle it. Players sign up to a monthly subscription to be entered into the draws. The number of monthly subscriptions for a single player is limited, and draws take place throughout the month with results published accordingly. One of the most influential factors in the development of gambling problems is the ability to gamble in real time over and over again. Charity lotteries do not allow real-time gambling, so it takes away the ability to chase a perceived high. Lotteries are widely recognised as being low-risk games compared to other forms of gambling.

To conclude, I feel confident that there are only benefits to the Bill. There are benefits to the charity sector, which is facing unprecedented pressures, to local charities and community projects, and ultimately to all of our constituents.

Employer National Insurance Contributions: Charities

Lee Dillon Excerpts

Tuesday 7th January 2025 Westminster Hall

[Mr Lee Dillon (Newbury) (LD)]

It is a pleasure to serve under your chairship, Ms Vaz. I thank the hon. Member for Isle of Wight East (Joe Robertson) for securing the debate. A reference was made to the unintended consequences of the Government’s decision, but actually they are not unintended consequences; there was a dereliction of duty because the Government did not do the impact assessments that they should have done to understand what they would do to our charity sector.

I recently visited West Berkshire Mencap in my constituency of Newbury. As a result of the financial pressures, the organisation will need to find an additional £163,000 to cover national insurance contributions, and its agency costs are projected to rise by approximately 12%. I also recently met Rachel Peters, the chief executive of Volunteer Centre West Berkshire, which last year provided advice and support to 403 individuals on volunteering. She expressed grave concern about the impact that the changes will have in Newbury, with staffing costs alone projected to rise by 18%. Overall within the charities that she represents, an additional £387,000 will need to be found in the next financial year, with hardly any time to plan.