'A case of life or death': Sport and physical activity sector calls for VAT relief package

There are calls for the Government to extend to the sport and physical activity sector the VAT cut granted to the leisure industry during the coronavirus crisis – amid warnings it was a matter of “life or death”.

The Sport and Recreation Alliance and ukactive, which between them represent more than 4,000 sport and physical activity providers, announced they had made an “urgent request” to include their members in the relief package that has already been offered to the hospitality, accommodation and culture sectors.

Those industries have seen a fourfold cut in VAT to five per cent, something the SRA and ukactive want applied to sport and leisure facilities and tickets to sporting events across the UK.

They warned the sector’s ability to keep millions of people active and engaged in sport and physical activity was at risk at a time the Government had launched a new obesity strategy in the wake of the Covid-19 pandemic to help reduce pressure on the NHS.

Lisa Wainwright, the SRA’s chief executive, said: “There seems no obvious reason why a festival goer or visitor to a theme park should benefit but a football, rugby or cricket fan does not.

“While sport is currently behind closed doors, a VAT reduction would help fans ‘buy forward’ for events coming up in the future – notably for major events like the Rugby League World Cup 2021 or season tickets for their favourite clubs. Many of these clubs do not operate at the top of the sporting pyramid and the cashflow benefits would be a real boost.

“Doing so would also help to protect the areas of the sector at greatest risk, such as women’s sport.”

Kathryn Ratnapala, the head coach of two-time Netball Superleague champions Saracens Mavericks, said a VAT cut could be the difference between the survival and closure of the club.

Mavericks have created a Go Fund Me page which has a target set of £50,000 to allow them to continue to operate, a figure tax relief could raise at a stroke.

Ratnapala said: “We can’t be any clearer, this is a case of life or death for us. We are a community club, with a loyal fanbase and the ability to reach thousands of women and girls in our area.

“All we are calling for is equality. If Government can provide the exact same relief for our sector as it is supporting others – we can survive.”

Huw Edwards, CEO of ukactive, said: “The virus has exacerbated health inequalities in our society, with our most vulnerable populations worst affected by the closure of vital sport and leisure facilities, including children and young people, people living in areas of high deprivation, and older adults at risk of isolation and loneliness.

“By providing VAT relief, the Government has the chance to level the playing field for the sport and physical activity sector and help get us back to business at the time we are needed most.”

A Government spokesperson said: “We’ve provided an unprecedented package of measures for all businesses, including those in the sports sector, which supports the wages of furloughed staff, provides billions in Government-backed loans and grants, business rates relief, and tax deferrals.

“We will continue to support sports clubs bringing back staff through the £1,000 job retention bonus, while our Plan for Jobs will also create new roles for young people and new incentives for training and apprenticeships.”