Select Committee on Public Accounts Fifty-Fourth Report


2  Planning for Beijing in 2008 and London in 2012

17. At the time of the Committee's hearing, UK Sport had awarded funding of £98 million for Summer Olympic and Paralympic sports for the Beijing Olympic cycle. UK Sport's funding decisions had been driven by its target for Great Britain to move towards 8th in the Olympic medal table in 2008, and all the sports which underperformed in Athens had seen that reflected in the decisions for Beijing. Of the six Olympic sports which won no medals in Athens, gymnastics, judo and triathlon had had their funding cut and reductions in the number of athletes who were funded; shooting, taekwondo and weightlifting were being funded at a similar level but with reductions in the number of funded athletes.[21]

18. Subsequent to the Committee's hearing, UK Sport announced increased levels of funding for Olympic and Paralympic sports for the Beijing Olympic cycle following the announcement in the Budget 2006 of a total funding package of £600 million for the years leading to the Games in London 2012 (see para 27).

19. In its funding decisions, UK Sport took note of the significance of sports to the public, and looked at what sports had achieved in the past and what they had the potential to achieve in four years time. From April 2006 UK Sport was also assuming responsibility from Sport England for the talent development programmes which provide support to athletes who have the potential to compete at world class level in around eight years time.[22]

20. UK Sport identified three groups for the sports it funded:

  • sports such as cycling, rowing and sailing which were already achieving at a significant level and where the aim was at least to sustain the current level of performance;
  • sports which could and should do better, such as athletics, swimming, judo and shooting;
  • small sports where there were relatively few athletes with medal potential.[23]

21. UK Sport's aim was to work with underperforming sports to make sure they had the support needed to achieve their full potential. In the case of athletics, performances in recent years had been disappointing. For example in Athens four medals won against a target of seven. As athletics accounted for 15% of the available medals, it was crucial for the British team to perform well in future Olympics. UK Sport had therefore been working closely with the national governing body, UK Athletics, and there had been a number of changes, including a new Performance Director who took up post in March 2005.[24]

22. Looking ahead, we asked about the possibility of UK Sport supplementing its lottery income with commercial sponsorship, as happens in some other countries, such as the Netherlands where there is a culture of private sector involvement in supporting elite sport. In early 2005 UK Sport was planning to raise £4 million from sponsorship during the Beijing Olympic cycle, but subsequently concluded that it was not best placed to manage sponsorship directly since the delivery of benefits to sponsors rested with national governing bodies, the British Olympic Association and the British Paralympic Association. UK Sport also considered there was a risk that it would end up competing with these key partners and therefore decided to remove sponsorship from its plans. Subsequent to the Committee's hearing, however, the Government announced that the Department and UK Sport were to develop proposals for raising £100 million of sponsorship in the period to 2012.[25]

23. We also asked whether there was a medal table target for the Olympics in London in 2012. UK Sport told us it had made a submission about funding for 2012, which was being considered by Ministers, and that it was unable to set a target until it knew what resources were available, although its long term aim was to be among the top five nations.[26]

24. Following the hearing, however, we learned that UK Sport's 2003-06 funding agreement with the Department included a target of 5th place in the Olympic medal table in 2012. Then around a week after the hearing, the Committee received a copy of UK Sport's funding submission to Ministers[27] which set out five funding options, each with a target finishing position for the medal table in 2012. The submission stated that "UK Sport's ultimate goal…is to finish 4th in the 2012 Olympic medal table, finishing as top European nation, and retain our 2nd place in the Paralympics whilst aiming for the top spot".

25. Following an exchange of correspondence between the Chairman and the Department[28] about the apparent disparity between these documents and the answers given at the hearing, the Committee decided to take further evidence from the Department and UK Sport. On the question of its funding agreement with the Department, UK Sport said that the word 'target' had been misused. While it had a longer term goal to lead the United Kingdom to become one of the world's top five sporting nations, it had no confirmed target. The Department regretted the way language had been used and agreed that various published documents had confused long term aims and specific, measurable, agreed and resourced targets.[29]

26. On UK Sport's funding submission to Ministers, the witnesses acknowledged that the submission had included a range of funding scenarios and associated targets, and that this had not been made fully clear at the earlier hearing. The witnesses confirmed, however, that no firm target for 2012 had been set.[30]

27. Subsequent to the Committee's hearings, the Government announced in the Budget 2006 a total funding package of £600 million for the years leading to the Games in London in 2012. In addition to £300 million already committed from the National Lottery, the Government is to provide funding of £200 million, and the Department and UK Sport are to bring forward proposals in the Pre­Budget Report later in 2006 to lever in £100 million of sponsorship.[31]


21   Ev 20-21; Qq 7-9, 29 Back

22   Qq 22, 129, 152 Back

23   Q 120 Back

24   C&AG's Report, para 4.24; Qq 5-6, 120 Back

25   C&AG's Report, paras 4.37-4.39; Qq 122-126 Back

26   Qq 83-91, 95 Back

27   A sporting chance for 2012 - options for the Chancellor's Pre-Budget Report Back

28   Ev 22-23 Back

29   Qq 155-156, 167-169 Back

30   Qq 153-155, 176, 179 Back

31   Budget 2006 (HC 968, 22 March 2006) Back


 
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Prepared 18 July 2006