In its submission to the Treasury ahead of the Autumn Budget (30 October) Bacta has called on the government to unlock growth by delivering the Gambling White Paper package.
The submission argues that despite members facing significant challenges including the operation of energy intensive businesses and the inability to share increased business costs with consumers due to the decade+ long freezing of stakes and prizes, the sector remains what it describes as being ‘a key vehicle’ for unlocking growth.
Arguing that the introduction of the White Paper announced by the previous Conservative Government was only stymied due to the snap General Election. The Bacta submission states: “Two of its (the White Paper’s) measures, in particular, would drive growth: Firstly, the introduction of cashless play with gaming machines which would especially help the pub sector (at present players must play with cash which is becoming something of an anachronism) and Secondly, changes in machine allocations in Adult Gaming Centres with the introduction of a 2:1 ratio of B3 machines to other machines.”
On the flip side it states that any increases in the Machine Games Duty (MGD) rates for the land based sector would have dire consequences given the existing cost pressures.
Instead, Bacta’s submission argues for some tweaks to the regime including the ability for gambling machine operators to reclaim VAT, extending the 5 percent MGD rate to 25p andintroducing a new 10 percent rate for Category C machines which would also help the pub and bingo sectors where the income from Category C machines are a vital revenue stream.
Turning its attention to Britain’s hard-pressed high street economies where many Bacta members have a strong and active presence employing local people and supporting local supply chains Bacta stated: “While government support for the High Street has been welcome it would be unfair to exclude our sector from the support afforded to other hospitality, retail, and other (non-gambling) leisure industries. Any continued support should also include our sector.”
Adding: “We welcome the new Government’s commitment to reform the Business Rate regime as it unfairly burdens land-based businesses while advantaging online competitors. We know this will take time to be implemented. In the meantime a more frequent rate revaluation would partially assist.”
“Our members have had to pass on consecutive double-digit percentage increases in the national minimum wage. They have endured increases in business rates. And they are still recovering from the impact of the Covid pandemic where members’ businesses had to close for longer than other sectors of the economy.
Despite these challenges, the sector remains a key vehicle for unlocking growth – the over-riding mission of the new Government – particularly at the coast and in our hard-pressed high streets. We also help to keep pubs and clubs afloat at a time when many are struggling. In the Autumn Budget we would encourage you to take action to help invigorate our sector.”