Contribution
We talk to the gambling industry about that constantly. My noble Friend Baroness Twycross, the gambling Minister, is taking some of those discussions forward. We will continue to monitor it because a huge amount of sponsorship comes from the gambling industry. That is not a judgment on whether it is right or wrong, as we have heard today how damaging it may be; the hon. Member for Witney mentioned that the industry spends £2 billion a year on advertising. We should monitor it, and individual governing bodies will be looking at it. Premier league football is a good example of where a governing body has made a decision on shirt sponsorship, although I do not think it will have any difficulty in attracting sponsors, but other sports will find it more difficult to attract new money. We have seen this before with tobacco and alcohol advertising being banned, and we will continue to monitor it.
I thank the hon. Member for Tewkesbury for telling the personal story of his friend M. I am sure that story is reflected all over the country. We have heard from other Members this afternoon about suicides and the impact that gambling has had on families and the wider community. We should always reflect on those stories when talking about the positives and negatives of gambling.
I want to address the gambling taxation changes, which the shadow Minister, the hon. Member for Old Bexley and Sidcup, mentioned in some detail. The changes to gambling duties were outlined by the Chancellor last week at the Budget, which we will vote on this evening. Everyone will be aware that, in addition to the abolishing of bingo duty, we have announced an increase in the remote gambling duty from 21% to 40%. We have also announced a new remote betting duty set at 25%, with a carve-out to protect horseracing.
We have introduced those increases in gambling duties to reflect the way in which the sector has gone and to support our public finances. I take issue with how the shadow Minister presented that issue, because it is all about making balanced judgments. Of the money that will be raised for the Treasury, £26 million will be used to tackle the black and illegal market, which is a concern for us all. The money will also ensure that we can pull 450,000 children out of poverty, addressing any correlation between gambling addiction and poverty. The Chancellor and I believe that pulling 450,000 children out of poverty would be the best societal way of using that money.
With the Budget changes, it is clear that the Government are not anti-gambling. I have set out some of the measures that we have introduced in support of the sector. Through the Budget, we have also sought to limit the impact on the high street and protect activities that are lower risk and have greater levels of employment. We recognise the dangers posed by the illegal market, and for those in the regulated sector and those at risk of gambling-related harm. That is why we have allocated that £26 million to the Gambling Commission over three years to increase investment, resources and capacity to tackle the illegal market. That will be kept under constant review. We also hope to work closely with the industry and others to see how we can go further in this space.
The issue of consumer awareness was mentioned by my hon. Friends the Members for Stoke-on-Trent Central and for Aylesbury (Laura Kyrke-Smith), and by the hon. Member for Tewkesbury. I hope that we can work on customer awareness to demonstrate that the regulated sector is where people should be, and to spot the unregulated sector. If someone were to land on a website from an advert on social media, is it obvious to the vast majority whether it is a regulated or unregulated website? How would they know? I suspect that the unregulated sector has rather less regulated ways of pulling customers in. Education on customer and consumer awareness through the Gambling Commission would certainly be something that we should look at as well. There is no doubt that the social harms in the illegal industry are more amplified than those in the regulated industry.
I will talk a little about the national lottery, because it is a part of gambling that we do not tend to talk about in this country. I know that the hon. Member for Strangford mentioned national lottery scratchcards, but most people do not see playing the national lottery as gambling. It would be interesting for some analysis to be done about what the public thinks gambling actually is—whether it is the 25p accumulator on the Grand National or playing the national lottery. There is no doubt that the national lottery is a national institution and it has had a huge impact on good causes in our communities. I suspect that a lot of people in this country play the national lottery, yes, to win the big prize, drift off on a yacht somewhere in the Mediterranean and hand in their resignation—I suppose it would be to the Prime Minister in my case if I were to win—and retire. But people also play the national lottery knowing that a lot of that money goes into good causes and they see transformation, whether through heritage or charitable cases and those kinds of things.
To conclude, it is important that as a Government we now take stock of where we are. I know that there are further regulatory reforms that many Members want to see, and we will continue to act when evidence shows us that we need to intervene. Nevertheless, it is important that we implement and evaluate our recent reforms properly and give them time to bed in before moving on to the next thing. For example, we need to ensure that the three strands of the statutory levy are running smoothly. I hope that that gives some reassurance to the shadow Minister. We need to fully engage with stakeholders to understand the impact of the tax changes on their businesses and provide as much certainty as we can while that happens. I hope that that reassures my hon. Friend the Member for Stoke-on-Trent Central in particular. This all requires a bit of time to bed in.
Ultimately, the Government want a gambling sector that is modern, sustainable and protects the most vulnerable from harm but that is also thriving. Our manifesto committed us to working with the industry to ensure responsible gambling, and that remains important to us. In parallel, we will continue to regulate gambling in a balanced and modernising way and support the regulatory sector where we can.