Sir Keir Starmer has scrapped a key clause in the new Football Governance Bill after it led to the England team being threatened with expulsion from the next European Championship in the UK and Ireland.

The Government will introduce the landmark legislation in the House of Lords on Thursday, weeks after it emerged Euro 2028 organisers Uefa had written to Lisa Nandy, the Culture Secretary, warning of the dire consequences of political interference that undermined the “autonomy” of the national sport.

The Football Governance Bill will impose an independent regulator on the English game, and European football’s ruling body was most opposed to one clause in it forcing the new quango to “have regard to the foreign and trade policy objectives” of the Government.

The clause was included in legislation first introduced to the House of Commons by the last Government in May and was widely viewed as a way of preventing the regulator vetoing takeovers of Premier League clubs by key figures from the UK’s allies in the Middle East, such as Saudi Arabia.

Its removal was confirmed by Ms Nandy two days after The Telegraph revealed WhatsApp messages that suggested the Saudi Crown Prince, Mohammed bin Salman, had personally controlled the move by his kingdom’s sovereign wealth fund to buy Newcastle United.

Labour have also made other changes to the bill tabled in May, including one that will avoid Sir Keir having to face more awkward questions about accepting freebies both before and after he became Prime Minister.

Parachute payments set to be shared with wider game

The Telegraph has been told the Labour leader was among those MPs lobbied by Premier League clubs – including the team he supports and has received hospitality from, Arsenal – desperate to avoid being forced to share hundreds of millions of pounds in so-called “parachute payments” with the rest of the English game.

Those payments are currently restricted to teams relegated from the world’s richest league in order to cushion the blow of losing their place in it. But they are viewed by others as giving those sides an unfair advantage over their promotion rivals in subsequent seasons and there have long been calls for the money to be redirected throughout the wider pyramid.

The bill tabled in May blocked the regulator from interfering in how the Premier League distributes parachute payments. But an amendment backed by the Labour front bench was proposed in an attempt to reverse it and this has been carried forward into the legislation being introduced on Thursday.

Another key change in what the Government has described as a “strengthened” bill will see clubs forced to provide “effective engagement” with their supporters on changes to ticket prices, and any proposals to relocate their home ground.

They will also be required to be transparent and publish what action they are taking to promote diversity in the game as part of reporting against a new football club corporate governance code that the regulator will introduce.

Ms Nandy said: “English football is one of our greatest exports and a source of national pride which this Government wants to see thrive for generations to come.

“But for too long, financial instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending.

“This bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.”

Uefa declined to comment but The Telegraph has been told it welcomes the scrapping of the “foreign and trade policy” clause.

The Premier League said: “We believe rigid banking-style regulation, and the regulator’s unprecedented and untested powers to intervene in the distribution of the Premier League’s revenues, could have a negative impact on the league’s continued competitiveness, clubs’ investment in world-class talent and, above all, the aspiration that drives our global appeal and growth.

“We appreciate the Government’s recognition of the role English football plays in the economy and society, and its commitment to ensure that these reforms provide protections to enable the Premier League’s continued global success.

“With our clubs, we will continue to work with Government and parliamentarians to consider appropriate checks and balances in the legislation to protect the hard-won position of English football, which is globally admired, a vital source of soft power and a driver of economic growth all over the country.”