Plans to see Glasgow host the Commonwealth Games in 2026 hang in the balance with the UK and Scottish governments in dispute over funding.
Event organisers have been looking for a new host after the Australian state of Victoria pulled out amid rising costs, which prompted discussions over holding a scaled-back version of the event in Glasgow.
While the majority of hosting the Games would be covered by the organisers themselves, the Scottish Government said the UK Government would need to underwrite all of the financial risk, and it cannot pledge money to cover costs.
Scottish health secretary Neil Gray said time was running out to give the plan the go ahead but insisted there could not be a financial risk.
“We’re still in discussions with the UK Government, with Commonwealth Games Scotland and the Federation about what is possible,” Gray told STV News.
“We understand the obvious benefit that there is to our sporting community of hosting the Commonwealth Games but there is also a risk, both reputational risk because we’ve seen the fantastic Commonwealth Games in 2014 of a different scale to what is being proposed here, and there is a potential financial risk.
“And that’s why, given the circumstances we’re facing with the public purse, the discussions with the UK Government will continue.
“We’ve set out very clearly that there cannot be a financial risk. We do not have the cover, particularly in an ‘in year’ position when the Games are being held because we do not have the same opportunity as the UK Government has to vary our budget in year.
“We would have to find savings elsewhere and we’re not willing to countenance that.”
Commonwealth Games Scotland had proposed an “innovative, cost-effective and sustainable” event, cut down to just ten sports, and believe the costs could be covered without a demand on the public purse.
CGS said that over £100m of the estimated £114m cost would come from money secured in a compensation negotiation with the Victorian Government, with the remainder coming from private finance.
However, a letter sent by Gray to the UK Government in August highlighted the “inescapable reputational and financial risk” involved in delivering the event in a short timescale and at a reduced level of service.
Gray told the UK Government that the Scottish Government was not in a position to shoulder the financial risk involved in any cost increases or overruns and that they could not agree to the Games being hosted in Glasgow unless that risk is “completely underwritten by the UK Government”.
He added that unless a decision was made by September 13, the opportunity to host the Games would have passed.
Since then, discussions have taken place between the two governments and this week UK sports minister Stephanie Peacock wrote to Gray outlining a proposed additional £2.3m funding to be drawn on in certain circumstances, in addition to a £27m contingency fund that had been previously earmarked.
She said there was “a strong preference” for the Scottish Government to match that figure but said that UK Government did not see justification for the requested full underwriting of financial risk.
Victoria announced in July 2023 that they were withdrawing from hosting the event, with the government saying that, “the Games no longer represented value for money”.
Follow STV News on WhatsApp
Scan the QR code on your mobile device for all the latest news from around the country
