As West Ham United kick off a new season in the Olympic Stadium where the nation cheered Mo Farah and Usain Bolt in the World Athletics Championships this summer, few will be aware that this fabulous venue, now the London Stadium, was partly funded by money intended for charities, which are still waiting for repayment.
The story so far: back in 2007, the government raided millions from lottery funds to pay for the infrastructure of the London Olympic and Paralympic Games. More than £400m of this money should have been distributed by the Big Lottery Fund in grants enabling charities to do vital work in communities.
In response to outrage from charities and MPs at the time, the then Labour government pledged to repay the £425m of funds after the sale of the Olympic assets. This promise was reaffirmed by successive coalition and Conservative governments.
Like this summer’s championships, the 2012 Olympics gave communities across the UK and beyond a reason to celebrate. When the cheering ended we should have continued the magic and created the next Mo Farah or Jessica Ennis-Hill through our voluntary groups and charities, where often unpaid and unsung heroes dedicate their time. It is these groups, the beating hearts of communities, that have suffered directly from the loss of this money.
It is a national scandal that the money these charities rely on is tied up in one of the richest football clubs in the world. The prized London Stadium, one of the main Olympic assets, was handed over to West Ham FC on a 99-year lease, with the club paying just £2.5m a year – less than the cost its least expensive transfer - , plus a £15m one-off charge. Meanwhile, small charities are struggling with squeezed funding and rising demand for their services.
Most Big Lottery Fund’s grants are for less than £10,000, but their value is much more. In the hands of a local, grassroots charity, a grant can have a massive impact – it can make the difference between being able to provide a vital service, such as a youth club or mental health support group, or closing its doors permanently. Without lottery-funded projects that give them the best start in life, children cannot aspire to be the next Usain Bolt.
If £425m were repaid to the Big Lottery Fund, it could support tens of thousands of projects – from children’s hospices in Scotland, to food banks in Wales or activities for isolated older people in the north-east.
What can we do to make it happen? Perhaps the prime minister has the answer. Before the money was taken, back in 2005, Theresa May strongly opposed the idea of the government being able to use lottery money to plug budget holes, calling it “a smash-and-grab raid”. “Every pound that the government choose (sic) to snaffle in that way is a pound that cannot go to help community groups or to preserve our historic buildings,” she stated.
But now that she is in No 10, the prime minister has changed her tune. Despite our repeated letters to her and other ministers, the response is a broken record, stating that repayments will start sometime in the 2020s.
But if the government is so certain that it’s going to pay back the funds eventually, why does it need to wait until the assets are sold? It could take on the role of creditor and pay back the lottery. Charities need this money today, not in another 10 years.
We’re not going to forget this scandal. With nearly 4,000 registered supporters, the Big Lottery Refund campaign, led by the Directory of Social Change, is calling on the prime minister to relocate her previous moral compass, put her words into action and give charities and community groups their well overdue money.
Rachel Cain is senior researcher at the Directory of Social Change.
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