Table of contents

Approximate read time: 10 minutes

The House of Lords is scheduled to consider the following question for short debate on 17 September 2026:

Lord Mann (Labour) to ask His Majesty’s government what assessment they have made of the economic benefits of giving sports clubs special enterprise zone status.

1. Key points

  • Enterprise zones were introduced by the coalition government and offer certain benefits to businesses and the local area with the intention of driving economic growth. These include time-limited business rate incentives, specified tax reliefs and simplified planning procedures.
  • The government has said it has no plans to expand the number or coverage of enterprise zones. Instead, its recent policy has focused on industrial strategy zones, which are a merging of areas previously designated as freeports or investment zones. Again, these areas offer certain tax reliefs and other financial incentives for businesses.
  • The government has acknowledged the economic contribution of sport to the economy, but has not commented on extending any of the economic zones to cover sports clubs. Departmental analysis reported that sport contributed £20.6bn to the economy in 2024. However, this does not just cover sports clubs. But, taking one example, the football Premier League reported that it contributed £9.8bn in gross value added (GVA) to the UK economy, over 100,000 jobs and £4.4bn in tax for the 2023/24 season.

2. What are enterprise zones?

Enterprise zones (EZs) were introduced by the coalition government with the intention of supporting economic and business growth in specified geographic areas. 48 EZs were announced across England between 2011 and 2016, with each covering specified economic sectors. For example, the Buckinghamshire EZ covers high-performance technology, space propulsion, satellite applications, agri-food and health. A list of the zones and their sectors (and links to each one) can be found on the government’s webpage ‘Enterprise zones’ (11 September 2024). None of these list sports or sports clubs as a covered sector; however, there may be sports facilities within some of these EZs. For example, a community sports village opened in the Blackpool Airport Enterprise Zone in 2023.[1]

EZs offered certain benefits for eligible businesses and the local area, such as business rate discounts for five years for businesses occupying an EZ by a certain date, tax reliefs for specified investment in plant and machinery, and simplified planning procedures.[2] In addition, business rates growth above an agreed baseline for 25 years in an EZ could be retained by the local authority to be reinvested in the local area.

In addition, there are 22 ‘industrial strategy zones’ across the UK, made up of areas previously designated as freeports and investment zones.[3] These also offer tax reliefs and other government support intended to drive localised investment and growth. A list of these, and further details, can be found at: Ministry of Housing, Communities and Local Government, ‘Industrial strategy zones action plan’ (23 June 2025).

Further information on EZs and other support for regional growth can be found in:

3. What has the government said about expanding these zones?

The government has said it has no plans to expand the number of EZs.[4] In addition, Sir Keir Starmer’s government stated in May 2025 that it had no plans to redraw or expand the boundaries of any existing EZs.[5]

The government has also not commented on increasing the number of industrial strategy zones or the areas they cover; for example, linking them to sports clubs. However, Sir Keir Starmer’s government did state in May 2026 that there would be a cross-government programme working with sporting bodies on priority sports infrastructure development projects, such as stadiums, with a focus on delivering local regeneration and commercial growth.[6]

4. What is the government doing to support sports clubs?

The size and finances of sports clubs in the UK vary considerably, ranging from large businesses such as Premier League football clubs and Premiership rugby clubs to smaller organisations, including grassroots and community clubs.

In general, government support for clubs focuses on grassroots and community organisations. For example, Sir Keir Starmer’s government committed to investing over £400mn in grassroots sporting facilities over the course of this parliament.[7] The government stated the funding would:

[…] continue to remove barriers to physical activity, ensuring we deliver new and upgraded grassroots sport facilities in the areas that most need them, so that people can participate in sport regardless of where they live. This funding is going to artificial grass pitches, goalposts, floodlights and community hubs through the multi-sport grassroots facilities programme […].[8]

Funding is also available through Sport England, arrangements put in place by the national governing bodies for the sport (such as the Football Association (FA) and the Rugby Football Union (RFU) and other sources (such as community and national lottery schemes).[9] For example, the Football Foundation offers funding for facility and infrastructure projects for smaller football clubs. It is a charity funded by the FA, the Premier League and the Department for Culture, Media and Sport.[10] Cricket clubs can apply for grants and other funding from the England and Wales Cricket Board (ECB).[11]

In terms of larger sports clubs, the government has stressed that financial support is generally a matter for that sport’s national body. For example, regarding professional football clubs outside the Premier League, it has said that financial distribution is a matter for the football industry and the new football regulator.[12] It has also said that the governance of rugby clubs (including in the Premiership and Champ Rugby) is a matter for the RFU.[13] However, it has said that it continues to engage with the RFU on the financial situation for these rugby clubs.

Further information on funding for sports clubs can be found in: House of Commons Library, ‘UK sports funding for individuals, organisations and teams’ (8 May 2026).

5. What are the reported economic benefits of sports clubs and enterprise zones?

There is limited and mixed evidence of the actual economic impact of EZs. A House of Commons Library briefing published in 2024 and a BBC News article published in 2019 highlighted analysis suggesting that the number of jobs created by the policy may have been lower than expected.[14] However, the then Conservative government disputed some of the findings quoted, claiming EZs had “supported over 877 businesses, attracted £3.5bn of private sector investment and created over 38,000 jobs”.[15]

Similarly, a 2024 Commons committee report on freeports and investment zones (which are now grouped together under the term industrial strategy zones) said that the economic benefits of these areas would be difficult to estimate.[16] However, government analysis estimates that freeports in England will “directly create 60,000 additional jobs and will support another 42,000 jobs across the supply chain”.[17] It said that “local partners expect that investment zones across the UK will create over 90,000 jobs over the life cycle of the programme”. In December 2025, the government claimed freeports and investment zones had “attracted over £6.4bn in private investment to date”.[18]

Comment related to the potential economic impact of sport and sports clubs includes:

  • The Department for Culture, Media and Sport reported that sport contributed £20.6bn to the economy in 2024, accounting for 0.8% of UK GVA. However, this figure is not limited to the economic contribution of sports clubs.[19]
  • Taking one example of professional sports clubs, the Premier League reportedly contributed £9.8bn in gross value added (GVA) to the UK economy for the 2023/24 season, as well as contributing over 100,000 jobs and £4.4bn in tax.[20] The economic impact of football clubs is acknowledged by the government. It stated in 2025 that they also “deliver indirect economic benefits to the local communities they serve, attracting visitors, and bringing increased footfall to the hospitality, retail, and transport sectors”.[21]
  • The planning and development consultancy Lichfields has highlighted the local opportunities presented by sports and entertainment districts.[22] It reported analysis that Premier League and Barclays Women’s Super League matchdays generated £2.3bn of consumer spending in local economies and that spending within 1km of stadiums rose by an average of 4.1% on matchdays in the 2024/25 seasons (compared with non-matchdays). Lichfields stated: “Across the UK, major venue projects are increasingly being conceived as anchors for wider mixed-use districts. Sport, live entertainment, food and beverage, hospitality, hotels, workspace, public realm and community uses are being combined into all-day, every-day, year-round destinations. For clubs, investors, developers and operators, this creates a significant opportunity. It rewards projects where the venue strategy, real estate proposition, economic benefits case and planning approach are integrated from the outset. […] At their best, they can create new revenue streams, attract private investment, support local jobs, generate visitor spending, strengthen supply chains, create community value and support places that work throughout the week and across the year”.[23]
  • Analysis commissioned by Sport England estimated the combined economic and social value of sport and physical activity (including health and wellbeing benefits) in England in 2024 at around £165bn.[24] It calculated this to be a return on investment of £4.38 per £1 spent. However, again, this does not just account for sports clubs.

Image by Ben Griffiths on Unsplash.

References

  1. Blackpool Airport Enterprise Zone, ‘Common Edge sports village’, accessed 11 September 2026. Return to text
  2. Ministry of Housing, Communities and Local Government, ‘Enterprise zones’, 11 September 2024. Return to text
  3. Ministry of Housing, Communities and Local Government, ‘Industrial strategy zones action plan’, 23 June 2025. Return to text
  4. Ministry of Housing, Communities and Local Government, ‘Enterprise zones’, 11 September 2024. Return to text
  5. House of Commons, ‘Written question: Enterprise zones (49212)’, 6 May 2025. Return to text
  6. Department for Culture, Media and Sport, ‘First Olympics in the North of England in government’s sights alongside stadium regeneration push’, 17 May 2026. Return to text
  7. Department for Culture, Media and Sport, ‘Game changer for the nation’, 19 June 2025. Return to text
  8. House of Lords, ‘Written statement: Investment in grassroots sport facilities (HLWS1273)’, 27 January 2026. Return to text
  9. House of Commons Library, ‘UK sports funding for individuals, organisations and teams’, 8 May 2026. Return to text
  10. Football Foundation, ‘Home’, accessed 4 September 2026. Return to text
  11. England and Wales Cricket Board, ‘Club funding’, accessed 4 September 2026. Return to text
  12. HC Hansard, 22 May 2025, cols 1153–5. Return to text
  13. House of Commons, ‘Written question: Rugby: Finance (104385)’, 16 January 2026. Return to text
  14. House of Commons Library, ‘Enterprise zones’, 12 September 2024; and BBC News, ‘Enterprise zones ‘failed to deliver’ jobs boost in England’, 11 July 2019. Return to text
  15. BBC News, ‘Enterprise zones ‘failed to deliver’ jobs boost in England’, 11 July 2019. Return to text
  16. House of Commons Business and Trade Committee, ‘Performance of investment zones and freeports in England’, HC 272 of session 2023–24, 26 April 2024, p 14. Return to text
  17. House of Commons, ‘Freeports and special economic zones: Job creation (59850)’, 23 June 2025. Return to text
  18. House of Lords, ‘Written question: Freeports and special economic zones (HL12071)’, 1 December 2025. Return to text
  19. Department for Culture, Media and Sport, ‘DCMS sectors economic estimates gross value added 2024 (provisional)’, 5 February 2026. Return to text
  20. Premier League, ‘Research shows Premier League’s growing contribution to UK economy’, 12 November 2025. Return to text
  21. House of Commons, ‘Written question: Football (29936)’, 17 February 2025. Return to text
  22. Lichfields, ‘Beyond matchday: The rise of the UK sports and entertainment district’, 22 June 2026. Return to text
  23. As above. Return to text
  24. Sport England, ‘The return on investment of sport and physical activity in England in 2024’, November 2025. Return to text