You've got this backwards, Scruffy Jim wants some public/private finance bollocks to build the stadium, he wants the government to pick up the lions share of the tab. Starmer says no, but he won't stand in his way, he'll facilitate Scruffy building and paying for the stadium himself, but only by stumping up government money for a few extra trams and the odd bit of tarmac, peanuts in the scheme of things.
City were handed a brand new stadium 20 years ago for the price of a bottle of Vimto and a bag of Skittles, so we're in no position to criticise Starmer.