Spending Review - Round-Up

Posted: Mon, 30 Nov 2015 09:46

Spending Review - Round-Up

Last week's much-anticipated spending review brought some good news for the Department for Culture, Media and Sport (DCMS), testament to a convincing case made to the Treasury about the role sport can play in society. Presented below is a round-up of what the decisions announced by the Chancellor will mean for sport.

UK Sport, Sport England​, the Sports Grounds Safety Authority (SGSA) and UK Anti-Doping (UKAD) have all been spared a financial hit, as DCMS' budget is to be cut by only 5% – rather than the 25-40% forecast. This is an extremely favourable settlement with the Treasury, recognising the enormous value of sport.

Crucially, this will allow DCMS to deliver the new strategy for sport, to be launched in December and, despite the DCMS's total administrative budget being cut by 20%,it seems the department has secured a Spending Review settlement that will allow that work to be funded in full and should result in total public investment in sport being higher in this Parliament than in the last.

Grant-in-Aid for Sport England will rise slightly over the course of this Parliament. With expected National Lottery funding included this means that Sport England's annual budgets in their next funding cycle (2017-2021) will be almost identical to their annual budgets in the current funding cycle (2013-2017).

There will be a flat cash settlement for grassroots sports funding with Sport England, which invests £325m of exchequer and lottery funding per annum into grassroots sport, receiving a cash increase of £2.6m, a slight drop in real terms.

​For UK Sport, the commitment made to maintaining funding for the Rio Olympics is extended through to the following Olympics in Tokyo 2020—havingbeen allocated a further 29% funding over the next five years. With Treasury funding rising significantly over the course of this Parliament and with National Lottery funding included this means that UK Sport's budget for the Tokyo Olympic Cycle to be almost identical to their current spending for the Rio de Janeiro Games. UK Sport receives a third of its £135m annual funding from the exchequer, with the remainder from the national lottery. That figure is set to rise to £148m per year ahead of the Tokyo Games.

Government funding for UK Anti-Doping will be maintained in real terms throughout the Spending Review period, with a small year-on-year cash increase. UKAD received a 7% cash increase in the light of doping issues elsewhere.

Government funding for the Sports Grounds Safety Authority will increase next year enabling them to redevelop their Green Guide and Accessible Stadia Guide. SGSA's funding will then decrease but DCMS will work with the SGSA to help them to increase the income they generate from commercial sources and from their licence fee to maintain their annual budget at or above its current level.

Minister for Sport Tracey Crouch: "This settlement recognises the wider value of sport in society and how it plays an important role in boosting the economy. The increase in funding will support our elite athletes in the run up to the Tokyo 2020 Olympic and Paralympic Games, grow the grassroots to get more people involved in sport and promote clean sport in the UK and beyond."

There are other sources of government support for sport where budget settlements and the potential impact on sport remain to be seen. There remain serious concerns over the long-term impact of local authority cuts and a reduction in the allocation to Public Health England which will impact at grassroots level, with numerous sporting facilities having been affected across the country.

Tags: DCMS, Health, London 2012, Olympics, Physical Activity, Sport, Uksport, legacy, participation, sport england, sport policy