Gambling Duty

As the Secretary of State responsible for the gambling industry, I have obviously been working closely with the Chancellor to ensure that the measures she announced yesterday protect people who gather great joy from an industry that is worth huge amounts to the UK economy and enjoyed by millions. In particular, the measures are to protect bingo halls, dog tracks, racing tracks, pubs and coastal communities. The measures we announced yesterday will start to make a significant dent in the numbers of children living in poverty—a legacy disgracefully left by the last Government—but the hon. Gentleman can be confident that we have made fairer choices to ensure that we protect things that millions of people in this country enjoy.

The Chancellor’s announcements in yesterday’s Budget in relation to gambling duty could cost the industry up to 16,000 jobs, largely in the high- tech part of that industry, and move £6 billion of gambling stakes into the black market. I know that the Secretary of State is a very reasonable individual—she would make an excellent future leader of her party—so does she agree that taxing something does not necessarily stop it from happening, and that this will move problem gamblers into a less regulated, illegal space?

The Minister for gambling, my hon. Friend Baroness Twycross, and I have obviously looked at this issue as part of the work we have been doing in the run-up to the Budget, and I am sure she would be happy to discuss it further with the hon. Gentleman. We have sought to limit the economic impact of this decision on the high street and focus the tax rises on parts of the gambling industry that have lower operating costs. For precisely the reasons the hon. Gentleman has outlined, we have also brought forward measures in the Budget to permanently lower business rates for over 750,000 retail and hospitality properties, which we think will help mitigate some of the impact on betting shops. We are aware of the challenges that the hon. Gentleman has raised, but Governments cannot duck choices, and our choice is to lift 450,000 children out of poverty to make a dent in the figure of 4.5 million left by the previous Government.

I congratulate my right hon. Friend and, indeed, the Chancellor on making the decision to tax online gambling in particular. The fact that people effectively have a casino in their pocket destroys lives and families, and it is right that we send that strong signal, as well as make sure money is available to tackle the insidious moral scar of child poverty that was left by the previous Government. Can my right hon. Friend confirm how we will ensure that the way we conduct gambling in this country provides better protection to those families and individuals who end up being exposed to some of the most insidious practices of the gambling industry?

I agree with my hon. Friend that child poverty is a moral scar on the soul of this nation. Where we differ slightly is that for me and our Government, this is not about sending a signal to the gambling industry. It is simply about making the right choices—the fairest choices—in order to reverse some of the damage done by the last Government. Gambling is enjoyed by millions of people in this country without harm, but it does cause significant harm for a minority. We introduced the gambling levy to ensure that we can invest in prevention and support for those affected, and we have allocated an additional £26 million to the Gambling Commission over the next three years, to increase investment, resources and capacity to tackle the illegal market. As the hon. Member for Bridlington and The Wolds (Charlie Dewhirst) has raised and as my hon. Friend has mentioned, the illegal market is where an unregulated industry can cause serious harm, and we are determined to tackle it.