Spring Statement 2025: Reeves misses trick ignoring sport and Old Trafford
Standing at the dispatch box on Wednesday, Chancellor Rachel Reeves delivered her much anticipated Spring Statement.
Just months after her autumn fiscal plan, where she hiked taxes by £40bn and confirmed funding for a football regulator which continues to divide the game, the member of parliament for Leeds West and Pudsey – and one of the most powerful people in the country – returned to the Commons to offer little to the sports sector.
With the UK’s growth forecast downgraded by the Office for Budget Responsibility (OBR) this week, sport could have been the white rabbit to get the chancellor out of a financial hole.
Earlier this year Ineos co-owner and Manchester United shareholder Sir Jim Ratcliffe called on the government to help finance a “New Trafford” project, which includes a 100,000-seat stadium for the Red Devils and a surrounding redevelopment of commercial and residential property. United cite a study claiming it would generate over £7bn for the economy annually. No11 clearly didn’t agree with the figures.
During the autumn Reeves announced changes to non-domicile status for those who live in the UK but are registered, for tax reasons, overseas. These changes could impact the very best foreign athletes plying their trade in England’s Premier League or Gallagher Premiership. Those reforms weren’t rolled back on today.
And there were no positive announcements about supporting developments at Wimbledon’s All England Club and the London Lions’ planned new basketball arena, or to steamroll NIMBY councillors’ opposition to Rugby Football Union wishes to bring more events to Allianz Stadium in Twickenham.
Lay of the land
Matthew Allen, macroeconomic expert and lecturer in economics at the University of Salford, told City PM: “The omission of financial support for Manchester United’s proposed ‘New Trafford’ stadium in the Spring Statement could be seen as a missed opportunity to bolster the UK’s soft power. Manchester United is a globally recognised brand and a state-of-the-art 100,000-seat stadium could enhance the UK’s international profile in sports and tourism.
“Government backing might have signalled a commitment to leveraging cultural assets for global influence. The proposed stadium is part of a broader plan to revitalise the Old Trafford area, potentially creating approximately 90,000 jobs and significantly boosting the local economy.”
Allen admits, however, that the need to kickstart economic growth must be balanced against public sentiment, adding that some would argue that money should be targeted at essential services.
Housing for many, however, is seen as crucial. Manchester mayor Andy Burnham, World Athletics president Lord Coe and former United player Gary Neville all advise on the Old Trafford Regeneration Task Force, and, given the Labour mayor’s need to secure housing for the area, it is surprising that the housing provision element of United’s redevelopment was not pushed by the council to the Treasury.
Spring Statement uplands?
Dr Jonathan Carr-West of the Local Government Information Unit concurs, stating that there are some bright spots in the Spring Statement, which could benefit local communities.
“The OBR’s projection that we are on track for 1.3m of the promised 1.5m houses by the end of the parliamentary term is very positive news,” he said. “However, it was not clear how central councils actually are in the Chancellor’s plans for delivery, which is very concerning.”
What is the result, though? Another fiscal event where sport has been overlooked by consecutive governments.
Sheffield Hallam’s Sports Industry Research Centre calculates that the UK sports sector is worth £100bn to the economy. Overlooking it is a mistake.
Reality for Reeves
Shadow sport minister Louie French hit back at Rachel Reeves following the parliamentary statement, insisting the government “missed an open goal” to give sport the support it needed.
“Instead of engaging with sports clubs across the country, the Government continues to knock on increased operating costs and regulations to clubs, from the grassroots to the elite level,” he added.
“With unemployment set to rise and growth forecasts halved this year because of Labour’s budget choices, this Sunday league government needs to wake up quickly to the economic realities facing sports clubs.”
It appears clubs and the wider sport industry will need to wait until the next economic statement for some relief, then.