Contribution
That is nonsense, frankly. Some 7,500 people work for that company in my constituency. If they were all my constituents, that would mean one in 10 people in my constituency were getting paid a salary that is greater than the average for the region. Whether we like gambling or not, that company and the people it employs are driving the economic regeneration of north Staffordshire, because those jobs are the ones that give people money to spend on our services, shops and social activities.
I am sure we do not want to make this a debate about the moral rights and wrongs of gambling—that is not the nature of the debate we are having today—but I do think we need to consider the reality of the circumstances that the communities that host these companies will face as a result of the tax changes. I congratulate my hon. Friend the Member for Halesowen on being successful in his campaign to get to where we are today, but the consequence is going to be felt in my constituency with job losses. There are people who will not have a job this time next year, either because the company that they work for will have to reduce the number of people who work for them, or—worst of all—will move overseas.
There have been lots of comments about moving profits overseas and the prospect of bad actors, but the company in my constituency is probably an exemplar of how to keep the money in the UK. The owners of the company are paid incredibly well, but they still pay PAYE. They make a contribution to the state that is about equal to my entire local government budget. The idea that these are not meaningful organisations is slightly disrespectful to the people in them, and the economic damage that would occur in my city if such companies were to disappear overnight, which they could do, would be devastating. Frankly, it would cost the Government significantly more in the bail-out that would be needed than they would raise through the tax.
I think it was my hon. Friend the Member for Dartford (Jim Dickson) who made the point that we do not do hypothecated taxes in this country. When it comes to spending, I support every measure that the Government brought forward at the Budget. The lifting of the two-child benefit cap will benefit 4,500 people in Stoke-on-Trent Central. My city has one of the highest rates of child poverty of anywhere in the country, so the benefit to those families will be enormous and immediate. However, everything goes into one big pot and then goes out from the other pot, and we should be careful about making the moral argument that specifically taxing gambling is the only possible way to fund how we deal with child poverty. That is a slight misapprehension.
Having visited bet365 and seen the work that it does, I know that it is worried about the impact that the changes will have on the black market. It—as does the entire sector—spends a lot of its time and energy doing research and development to try to work out how to keep people playing and betting in the regulated sector, where there is support for people at risk from gambling, including lock-out mechanisms for problem gamblers, and where the tax receipts from the people who bet go back into the UK. To have £6 billion going into the unregulated sector could be a huge loss to the Treasury.
We are all only one or two clicks away from being in an unregulated gambling app. For Safer Gambling Week, the Betting and Gaming Council asked people to look at two comparable gaming sites, because without realising, people can easily find themselves on one site that is not regulated, whose revenue stream almost certainly goes into dark activity—probably funding some organised criminal activity—and not a regulated sector product, with all the support and safety measures that come with that. Because these things can now proliferate on phones, access to them for people of all ages is now much easier.
There is a genuine concern that we must think about: if that £6 billion is going into the unregulated sector and, as the result of the tax changes—as the OBR recognises—there will be an increase in unregulated activity and problem gaming, is the £26 million for the Gambling Commission enough? Will the £1.1 billion raised by the statutory levy be sufficient? As the hon. Member for Gosport (Dame Caroline Dinenage) said, there is genuine concern from some charitable organisations on the ground that they have not yet had their funding for this or confirmation about how they will be able to spend it. Does it just get sucked into the NHS pot to be spent on a medical solution? That might be the solution, but that means that some of the carefully crafted mechanisms to deal with problem gambling will simply lose out as a result of big structural changes to tax.