Sports Lobby Government for Olympic Cash

The country's four main spectator sports yesterday called on the government to divert some of the money it might spend on a possible 2012 London Olympic bid to thousands of sports clubs by giving them rate relief to stop them going bankrupt.

In a joint statement, the Football Association, the Rugby Football Union, the England and Wales Cricket Board and the Lawn Tennis Association also expressed their support for an amendment being brought by the Labour MP Clive Betts to the local government bill which would give 80% mandatory rate relief to community sports clubs.

Concern is increasing among sports governing bodies that many community sports clubs may go to the wall because of the high level of rates they have to pay to local authorities. According to some figures, 40,000 such clubs have gone out of business over the past five years and another 30,000 are on the brink of insolvency.

The joint statement said: "The government is considering the possibility of spending hundreds of millions of pounds of taxpayers' money on bringing the Olympics here, which, if they were to come to London, would be a great honour for this country.

"However, all top-class athletes have started off their sporting life in rather more humble surroundings and they know the crucial importance of Britain's 110,000 community amateur sports clubs (CASCs) to the survival of grassroots sport in this country.

"That's why it's imperative that cash-strapped CASCs, and their 1.5m volunteers, are supported by the government. This is why we are imploring the government to support Clive Betts' amendment . . . which would give 80% mandatory rate relief to CASCs and send out a very strong message that the government cares about grassroots sport."

There was widespread dismay among the sports community last year when the government failed to give sports clubs mandatory rate relief and chose instead to give them the option of registering as charities to gain tax relief.

The majority of sports clubs say that the system to register with the Charity Commission is bureaucratic and cumbersome and that volunteers simply do not have time to deal with the huge amounts of paperwork involved.

At a recent meeting of many governing bodies, a finance expert also raised doubts as to whether sports clubs would actually get 80% rate relief if they were not wholly devoted to charitable purposes.

Despite the setting up of a special helpline by Sport England and offers of advice, only 11 sports clubs in the country have so far chosen to register as charities.

Sports bodies claim that the amendment by Betts is the best way forward and would not cost the Treasury any additional funding. According to some figures, the Treasury could lose up to £35m in tax revenue under the plans to register CASCs as charities.

The amendment is due to be discussed in the Commons next week. Sports organisations also claim that it is unfair that some businesses will be given mandatory rate relief under the local government bill whereas CASCs will miss out.