Parliament warns against extending Premiership Rugby Covid loans

Wednesday 02 April 2025 12:01 am
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Tuesday 01 April 2025 6:37 pm

A prime parliamentary committee has insisted Premiership Rugby golf equipment who’re “financially unviable 5 years post-pandemic” shouldn’t have their Covid-19 loans prolonged.

The damning report from the Public Accounts Committee – an influential group of backbench MPs who probe state spending – singled out the method wherein £124m of loans funded by the taxpayer had been despatched to Premiership Rugby golf equipment in the course of the pandemic by the Division of Tradition, Media and Sport, describing it as “weak from the beginning”. 

The sum equates to 54 per cent of the sports activities loans, with three golf equipment going beneath for the reason that loans had been issued, owing the Authorities £41.6m.

“The PAC’s view is that loans, which had been launched as Covid assist, shouldn’t be prolonged to supply assist for our bodies that are financially unviable 5 years post-pandemic,” the report says.

The report – DCMS Administration of Covid-19 Loans – recommends that DCMS considers a spread of choices for the Treasury to recuperate the worth of the mortgage guide, together with promoting it to non-public lenders.

DCMS ‘overly optimistic’ over rugby restoration

Committee chair Sir Geoffrey Clifton-Brown mentioned: “Cultural and sporting occasions got here to an abrupt and stunning halt throughout lockdown, by regulation.

“In such circumstances, it’s in fact proper that the Authorities got here ahead with crucial assist to make sure the long-term way forward for foundational parts of our nationwide life.

“However such assist was contingent on the unprecedented nature of a world disaster, to not present a lifetime assure to establishments like rugby union which can be experiencing monetary difficulties 5 years later.”

The Public Accounts Committee additional stories that “DCMS is being overly optimistic in anticipating that every one funds will likely be recouped”, with uncertainty excessive over whether or not the mortgage guide will ever be repaid. DCMS refuted this declare in a letter by division everlasting secretary Susannah Storey to Clifton-Brown.

DCMS lent a complete of £474m to 120 debtors between 2020 and 2024. As of October final yr it had obtained £41m again however 9 debtors had grow to be bancrupt for the reason that first mortgage was issued.

The report, revealed as we speak, additionally highlights a battle of curiosity involving Storey, whose husband is on the board of Premier Rugby and a managing director at Premiership investor CVC Capital Companions.

It says the battle was declared by Storey however prevented her from being questioned by MPs, leaving a “hole in senior oversight and accountability for such a big quantity of public cash”.

Within the letter to Clifton-Brown, Storey mentioned it was not correct to counsel there had been a niche in accountability. However Clifton-Brown responded, holding agency.