UK Government reject Holyrood plea to underwrite Glasgow 2026 Commonwealth Games bid… but do offer £2.3m contribution

The British government has rejected a request from the Scottish government to fully cover the costs of hosting the 2026 Commonwealth Games in Glasgow.

Scottish Health Secretary Neil Gray had written to his counterpart in London asking for financial support.

It is understood that the British government is prepared to share the financial risk involved in hosting such a major event, but that those in power are reluctant to write a ‘blank cheque’ on behalf of the British taxpayer.

Mail Sport understands that a final decision on the Games will be made next week, but there is still talk about the cost of such a sporting spectacle, with financial and reputational damage at stake.

The UK’s Sports Secretary Stephanie Peacock has since written to Mr Gray indicating that an “additional contribution of up to £2.3 million” could be provided, but that the staging of the event in Glasgow would not be fully covered.

In the letter – seen by Mail Sport – Ms Peacock said: “Glasgow could very well host, and there are no other real options for 2026. We have also recognised the opportunities that hosting presents, including the chance to present a new, more sustainable model for the Games and an injection of over £100m of investment into the Scottish economy at no upfront cost to the government.

‘I have asked the UK Government for an additional contribution of up to £2.3 million and can now confirm this. This can be called upon under clear conditions and only if the event cannot be adapted to run within existing budgets and contingencies.’

Usain Bolt was the star performer when he first competed at the Commonwealths

John Swinney has insisted that no Scottish Government funding should be used for the Games

She added: ‘I would prefer this commitment (and any resource commitment) to be matched by the Scottish Government, in recognition of our mutual support for this event and our shared interest in its success.’

However, she noted that ‘the justification for your request for full, unlimited cover is less clear’, specifying that the ‘UK Government cannot commit to fully covering the risk for the event’. She stated that it is ‘highly unlikely that we will be able to agree unlimited, open cover and we do not believe that this is necessary, proportionate, financially justifiable or in the public interest, given the current financial circumstances.’

Mrs Peacock’s letter also stated that none of the proposed funding should be used ‘to enhance the concept or ambition of the Games’. This was apparently in response to a suggestion from Mr Gray that some of the additional money could be used to promote the event in a more limited way.

The proposals for Glasgow 2026 would see athletes compete in just 10 events, with an opening ceremony likely to be more cost-effective than before. Mail Sport revealed last month that Mr Gray had written to his London counterpart asking for financial support as time ticked away for a final decision on whether the Games would go ahead.

While the Scottish government is in favour of holding another Games in Glasgow, there are reportedly still concerns about the risks involved.

The cost of hosting the 2026 Games is estimated at around £114 million, with a contingency fund of up to 24 per cent included in the expected cost of the Games.

The Commonwealth Games Federation will contribute £100m to the staging of the event, with the remainder funded through commercial opportunities. However, issues remain over the level of support that should be provided by the UK government.

In a wide-ranging interview with Commonwealth Games Scotland chief executive Ian Reid CBE last week, the chairman insisted there was “no risk whatsoever” in holding another Games in Glasgow.

However, the Scottish Government maintained its position that the ‘required budget is not based on rigorously tested market costs. Ministers therefore have a duty to weigh up potential benefits against the associated risks of hosting the 2026 Games in Glasgow.’

In response to Ms Peacock’s letter, the Scottish Government said: ‘The Scottish Government has not yet made a decision, but ministers have been clear about the current financial pressures on the public purse.’

Speaking in Downing Street on Tuesday, the prime minister, Sir Keir Starmer, appeared to cast further doubt on the Games’ future by refusing to guarantee financial support. Scottish Secretary Ian Murray added that there was an ongoing debate about the cost of security and counter-terrorism.

Mr Gray told Mail Sport he remains ‘in close contact with the UK government’ and is ‘discussing the options available with a view to reaching a decision shortly’.

Glasgow, which also hosted in 2014, could be the last hope for the Games after other contenders dropped out.

Australia’s Victoria state withdrew as host last summer due to rising costs, while Malaysia and Singapore also rejected offers earlier this year.