Gordon Brown announced a series of tax exemptions and funding in his Pre-Budget Report today ahead of the London 2012 Olympics.
Heather Hancock, Head of Olympic Services at Deloitte, commented: "We welcome the Government's announcements as reinforcing their commitment to UK sport achieving its full potential by 2012. Commitments on tax, including the tax exemption for the London Organising Committee for the Olympic Games (LOCOG), were an important part of the successful bid for the Games. The Government has acted quickly and, following the Chancellor's speech today, legislation should be in place six years before the opening ceremony."
Heather Hancock went on to comment on the importance of these measures to the successful organisation of the 2012 Games: "Tax exemption is important: the management does not need to be distracted by the administration and complexity that the tax system entails; and importantly, if there is a surplus it will be tax free. This will maximise the amount that can be reinvested back into sport."
Gordon Brown went on to announce additional grant funding for potential 2012 athletes of £200m between now and 2012 and set an ambition to raise an additional £100m from commercial sponsorship. UK sport had originally asked for over £300m to deliver 4th place in the medal table. Heather Hancock recognised that the funding fell short of UK Sport's target. "Gordon Brown has set sport a challenging target to deliver the rest of the necessary funding from sources such as big business given that much of the available sponsorship income may be attracted to the London Organising Committee and the Games themselves rather than individual sports and athletes"
While it has been acknowledged that the Government has fulfilled its tax commitments, could the Government have used this opportunity to go further for UK sport?
Dan Jones partner in charge of the Sport Business Group at Deloitte added: "The Games are not just about the elite winning medals. A vital part of the legacy is the opportunity to increase participation in sport by young people and we welcome the additional funding of £7m for the National Sports Foundation and funding for the Sporting Champions scheme and for national sports festivals. To achieve a step change in participation however sport needs funding for facilities and coaches and such funding is hampered by the current tax system. Changes could be made to the tax system that would encourage and enhance investment in grassroots sport and recognise that sport at the amateur level is often being run by volunteers on a not for profit basis."
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