THE York-led fight to force the Government to retain tax benefits for amateur sports clubs appears to have taken a blow.

And as such, it is feared the financial implications could be disastrous for these volunteer-led clubs.

As revealed by the Evening Press, the York and District Sports Council has led a nationwide campaign to oppose Government plans to remove tax benefits for sports clubs which do not attain charitable status.

However, after a meeting with Minister for Sport Richard Caborn, YDSC secretary Chris Houseman has returned to York pessimistic that the clubs will get their way.

The YDSC began its campaign after a Government consultation paper aired proposals to remove rate relief and tax exemptions for clubs without charitable status.

The YDSC claims most volunteer-led clubs would not have the time or administrative resources to attain such status, while others, for example those with bar facilities which help them meet non-profit financial obligations, would not be granted it.

As such, they say that under the proposals these clubs would lose rate relief and tax exemptions and be financially crippled.

York MP Hugh Bayley has joined the YDSC's cause by asking Financial Secretary Paul Boateng to rethink the plans, while Houseman took the fight directly to Richard Caborn. However, following their meeting the York-based campaigner fears there is unlikely to be a Government U-turn.

"I found him (Caborn) very open and pragmatic," said Houseman. "He is very supportive of grass-roots sports clubs and keen to see that they get the maximum financial support from Government.

"However, despite the general view of sports clubs and sport governing bodies to the contrary, he believes that enabling clubs to obtain charitable status is the best way to deliver the fiscal benefits. This is because no new legislation is required.

"He is determined to mould the charity laws to avoid the many pitfalls that have turned clubs so adamantly against this option.

"But I believe he will find it virtually impossible to change two monoliths such as the Charity Commission and the Treasury by the time of the Budget in April, which would be necessary to deliver what sport wants. The necessary changes could well set precedents for existing charities that Government would not want to embrace."

He added: "I wish him well in his efforts. Success would be a great boost for sport - but failure would be a disaster, particularly for the Government who would clearly not have listened to the voice of sport."

Updated: 12:42 Friday, February 22, 2002