A top parliamentary committee has insisted Premiership Rugby clubs who are “financially unviable five years post-pandemic” should not have their Covid-19 loans extended.

The damning report from the Public Accounts Committee – an influential group of backbench MPs who probe state spending – singled out the process in which £124m of loans funded by the taxpayer were sent to Premiership Rugby clubs during the pandemic by the Department of Culture, Media and Sport, describing it as “weak from the start”. 

The sum equates to 54 per cent of the sports loans, with three clubs going under since the loans were issued, owing the Government £41.6m.

“The PAC’s view is that loans, which were introduced as Covid support, should not be extended to provide support for bodies which are financially unviable five years post-pandemic,” the report says.

The report – DCMS Management of Covid-19 Loans – recommends that DCMS considers a range of options for the Treasury to recover the value of the loan book, including selling it to private lenders.

DCMS ‘overly optimistic’ over rugby recovery

Committee chair Sir Geoffrey Clifton-Brown said: “Cultural and sporting events came to an abrupt and shocking halt during lockdown, by law.

“In such circumstances, it is of course right that the Government came forward with necessary support to ensure the long-term future of foundational elements of our national life.