Premier League and EFL call on Government to mirror hospitality sector and introduce emergency VAT cut for teams in a bid to ease financial concerns amid Covid-19 pandemic
- The Premier League and EFL are pushing the UK Government to make a VAT cut
- A £20m grant was given by Government to help National League clubs this week
- Football clubs at all levels feel that the Treasury can help by delivering tax cuts
There is a general acceptance in football that the Government will not provide any direct financial assistance beyond the emergency grants that have been given to the National League this week to ensure their season can begin as planned on Saturday.
But clubs at all levels feel that the Treasury could help by passing on tax cuts that have been given to other industries.
Premier League and EFL clubs want an emergency VAT cut introduced by the Government to help finances amid the Covid-19 pandemic
National League clubs are to receive government funding to allow their season to commence. However, they will play in empty stadiums rather than in front of fans (above at Halifax)
Culture Secretary Oliver Dowden oversaw the Government bail-out for non-league clubs
Hotels, restaurants and other businesses in the hospitality sector have been paying a reduced VAT rate of five per cent since July, but this cut — which will remain in place until January — has not been passed on to sports clubs, despite the fact their biggest revenue stream has been shut down by the ban on crowds. As a result clubs are being forced to pay 20 per cent VAT on the small sales they are making, such as memberships and match-passes for online streaming in the EFL.
The need for an emergency VAT cut was raised by several clubs at the EFL’s divisional meetings this week and Premier League clubs are also pushing the issue.
The Department for Digital, Culture Media and Sport, who are leading for the Government in the talks over a wider bailout for sport, are understood to be sympathetic and are liaising with the Treasury on the matter.
The Premier League held talks with the EFL on Thursday over the terms of the financial rescue package that has been demanded by Government. No agreement was reached.