Policing and Crime Bill

Baroness Howe of Idlicote Excerpts

Report: 2nd sitting (Hansard): House of Lords
Wednesday 7th December 2016 Lords Chamber

[The Lord Bishop of Bristol]

My Lords, I will speak to Amendments 173C, 196A and 200A in my name and I support Amendment 173B, in the name of the noble Lord, Lord Beecham. I am grateful for the way in which he introduced this group of amendments.

Members of your Lordships’ House will be only too aware that the House has rehearsed the arguments around betting shops, and in particular fixed-odds betting terminals, numerous times in the past year, and there seems to be little need to repeat them here in detail. We know that violent crime is on the increase in betting premises—up 68% in London over the past five years—and it seems very likely that the increasing reliance of betting shops on FOBTs is a key reason for this trend. I read just last night that of the 523 serious robberies committed in commercial premises in 2015, 200 took place in betting shops. Given the increasing threat of violence—which the noble Lord, Lord Beecham, has spoken well about—that betting shop staff face from organised thieves as well as angry, frustrated or opportunistic customers, the amendments in this group are an entirely reasonable attempt to help bring the situation back under some kind of control.

My amendment, which was first proposed in Committee by my right reverend friend the Bishop of St Albans, would give licensing authorities greater scope to impose conditions on the use of gaming machines in betting premises, with the aim of enabling those authorities to better enforce the licensing objectives of preventing crime and protecting the vulnerable. It would also clarify the ability of licensing authorities to undertake a cumulative impact assessment, as well as taking other risk factors into account. Given that fixed-odds betting terminals now make up 56% of the profits of a high street betting shop, it seems obvious to me, at least, that licensing authorities should be able to impose conditions on the use of these machines in areas where this is a high risk of gambling-related harm.

This amendment is, of course, limited in scope. Even if licensing authorities could impose conditions on the use of gaming machines, there would be limited opportunities to do so in practice. The “aim to permit” licensing framework of the Gambling Act 2005 is so heavily skewed in favour of the betting industry that licensing authorities have great difficulty imposing any conditions whatever on betting premises, the threat of judicial review deterring all but the boldest local authorities from taking significant measures to combat gambling harm through conditions. That is why I support the amendment in the name of the noble Lord, Lord Beecham, which would make minimum two-person staffing a mandatory condition of a betting premises licence. Although, as the Minister pointed out in Committee, licensing authorities can in theory impose conditions requiring two-person staffing levels, in reality the practice is much more difficult. Under the current licensing framework, only a mandatory condition can ensure adequate protection for staff.

In Committee the Minister suggested that amendments such as these should be properly considered in the round as part of the Government’s review of stakes, prizes and licensing arrangements. I entirely agree, so I hope the Minister can reassure the House that the suggestions in these amendments will be thoroughly considered as part of the Government’s review.

First and foremost, can the Minister reassure me that the Government will look at how the Gambling Commission might widen the scope of the conditions a licensing authority might impose in relation to gaming machines? Will they look in particular at the potential for licensing authorities to impose conditions that restrict the ability of customers to engage in anonymous fixed-odds betting terminal gaming—which would be possible without changes to primary legislation? I know that the betting industry is planning to trial new methods of identification, including biometric identification. If those trials prove successful, licensing authorities should be able to require the use of such methods in areas that are particularly vulnerable to gambling-related harm.

Secondly, will the Government encourage the Gambling Commission to issue guidance on the potential for licensing authorities to undertake cumulative impact assessments, as is currently possible with alcohol licensing? The latest research shows that people living near a betting shop cluster are at greater risk of gambling-related harm, and licensing authorities should be able to reflect that in policy-making.

Finally, will the Government look at the way in which the current “aim to permit” licensing framework inhibits the ability of licensing authorities to tackle gambling-related harm through the use of conditions? Colleagues have spoken to licensing authorities, which feel that they simply have no chance of imposing meaningful conditions when confronted by a betting industry armed to the teeth with eminent QCs. If the Government are serious about giving meaningful power to local decision-makers, they need to review this framework as a matter of course; otherwise, amendments to mandatory conditions, such as that proposed by the noble Lord, Lord Beecham, will be the only way to make effective progress on reducing crime or protecting staff.

[Baroness Howe of Idlicote (CB)]

My Lords, I am very pleased to speak in support of Amendments 173B and 173C in the names of the noble Lord, Lord Beecham, and the right reverend Prelate the Bishop of Bristol. I have added my name to both.

Beginning with Amendment 173C, I support the proposal to devolve more powers to local authorities so that they can determine, going forward, the number of fixed-odds betting terminals in their area. As has been said before, fixed-odds betting terminals present a very distinct challenge that results from the unique way in which they combine high stakes with a very high speed of play, such that it is possible to lose £18,000 in an hour.

Rather than repeat the statistics that I cited in our debate on these amendments in Committee, I want to highlight a study specifically of the play of people with loyalty cards. This is particularly interesting because those with loyalty cards tend to gamble regularly, and the research demonstrated that 37% of such users manifest problem gambling behaviours. Are we as a society really happy to countenance accepting a form of entertainment in relation to which regular engagement exposes nearly 40% of those partaking to serious risks?

A study published in 2016 on addictive behaviours in 72 homeless adults in Westminster identified elevated rates of problem gambling in the group, with 82.4% of those reporting problem gambling stating that their gambling preceded their homelessness. The authors of the report said that,

“our homeless participants identified Fixed Odds Betting Terminals as the most problematic form of gambling”.

In responding to the debate on these amendments in Committee, the Minister was keen to highlight the success of the Gaming Machine (Circumstances of Use) (Amendment) Regulations 2015, which require gamblers wishing to bet more than £50 on B2 FOBTs to do so either through a verified account or via over-the-counter authorisation. However, an assessment by the Department for Culture, Media and Sport revealed that only a limited number of stakes—between 8% and 11%—were being placed through verified accounts and that people placing bets with staff occurred in only around 1% of the sessions. Thus the uptake for stakes being placed through verified accounts and OTC authorisation was incredibly low and suggests that the Government’s attempt to track players has been unsuccessful.

In addition, the DCMS evaluation report noted that from 2014 to 2015 there had been a £6.2 billion reduction in bets over £50 but a £5.1 billion increase in stakes of between £40 and £50. This suggests that the intervention is simply changing the way that players play and is not seriously curbing problem gambling connected to FOBTs. The fact that increasing numbers of people are betting just under £50 every 20 seconds is deeply disturbing.

On Amendment 173B, I note that in her response to the debate in Committee the Minister said:

“The Association of British Bookmakers’ Safe Bet Alliance provides specific guidance on staffing security in bookmakers, which was drafted with the input of the Metropolitan Police. Members of the Association of British Bookmakers operate single staffing only when a risk assessment has been undertaken”.—[Official Report, 9/11/16; col. 1231.]

The implication of what she said seemed to be that this was satisfactory. However, given the extensive evidence of gamblers vandalising FOBT machines after losing apparently considerable sums of money, given also that betting shop staff recall having felt intimidated and scared when individuals have lost money on FOBT machines, given too that betting shops accounted for more than 200 of the 523 serious robberies against commercial properties in London in 2015, given that the Association of British Bookmakers has a very strong incentive not to allow its main source of income to be seen as a catalyst for public disorder, and, lastly, given that, although the Metropolitan Police can provide advice, it does not make law, it seems to me that we should not conclude that the current arrangements are satisfactory.

The Prime Minister has said that she wants to make Britain a country that “works for everyone”, as has already been mentioned. Although FOBTs are certainly working well for betting shops, they are not working well for other people—especially those in deprived communities, where a large number of FOBTs are located.

In conclusion, I emphasise two things. First, although I strongly support the proposal to give local authorities powers to limit the number of FOBTs, thereby providing the opportunity to limit the number of these dangerous machines, is it not far more important to make FOBTs less dangerous? To this end, I am very committed to the Bill introduced by the noble Lord, Lord Clement-Jones, in the previous Session, which proposed reducing the maximum stake per spin from £100 to £2. That is the big issue, and I very much hope that the Government will adopt this solution in their gambling review.

Secondly, I hope that the Minister will accept these amendments today, but if she says that we must await the outcome of the review on this matter, I hope that what I have said at this stage and previously will be taken into account as part of the review process. Finally, can she say when she expects the results of the gambling review to be published?

Policing and Crime Bill

Baroness Howe of Idlicote Excerpts

Committee: 4th sitting (Hansard - part two): House of Lords
Wednesday 9th November 2016 Lords Chamber

[Baroness Howe of Idlicote (CB)]

My Lords, I support Amendment 214, in the name of the right reverend Prelate the Bishop of St Albans, who sadly, as we know, is not able to be with us today. Noble Lords will no doubt be aware that I have spoken in previous debates outlining my concerns about category B2 gaming machines—or FOBTs, as they are more commonly known. The right reverend Prelate’s amendment is a good step in the right direction and I hope the Government will feel moved to support it.

There are clear associations between problem gambling and FOBTs that cannot be ignored. A study conducted by Orford et al showed that 26% of the days spent playing on FOBTs were attributable to problem gamblers and 23% of all time spent on FOBT machines was attributable to problem gamblers. Likewise, according to GamCare’s 2014-15 statistics, 26% of the calls to GamCare in 2014-15 were made for help with issues associated with FOBTs. Problem gambling and FOBTs go together hand-in-hand, and we have a duty to do more to help those who are struggling and the communities blighted by to the proliferation of betting shops.

On top of this, betting shops with FOBTs have also been associated with anti-social and criminal activity on local high streets, which has also been mentioned. A 68% increase in violent criminal offences at betting shops between 2011-12 and 2015-16, identified in an FoI request made by the right reverend Prelate to the Metropolitan Police is simply not good enough. We must do more both to protect employees, as the noble Lord, Lord Beecham, seeks to do with Amendment 214CA, and to safeguard communities. Those stories which make national headlines—punters smashing up machines in betting shops after losing significant amounts of money—only scratch the surface of what is experienced by employees and communities on a daily basis.

In approaching this amendment, which is about the licensing regime for FOBTs, it is important to say a word about the history of the licensing of betting shops. In 2001, the then Government’s Gambling Review Report concluded that the system at the time—of considering likely demand for gambling provision when issuing premises licences—had the effect of stifling competition and allowing larger firms to monopolise control of the gambling market. The subsequent Gambling Act 2005, which came into effect on 1 September 2007, abolished the so-called demand test, replacing it with an “aim to permit” clause. This effectively placed local authorities in a situation where, on receipt of an application, their starting point had to be to look for a reason not to grant it, rather than to consider a reason to grant the application. The burden shifted to consideration of commercial interest first, rather than consideration of the impact on the consumer and the community.

Indeed, in evidence supplied to the Commons Culture, Media and Sport Select Committee for its 2012 report, The Gambling Act 2005: A Bet Worth Taking?, the London Borough of Haringey said there now seemed to be,

“almost no restriction on how many gambling premises”,

could operate in an area. Local authorities need help, therefore I particularly welcome Amendment 214, which would add a new Section 172A to the Gambling Act 2005. Proposed new subsection (5) would allow licensing authorities to take account of factors beyond simple commercial interest, such as proximity to schools, addiction centres or even existing betting shops.

With betting shops allowed four FOBT machines in one shop, there is clearly an advantage to opening several shops in an area to maximise revenue. Bookmakers made £1.7 billon on gaming machines between October 2014 and September 2015, of which category B2 machines —FOBTs—accounted for 99.7%. I reference page 1 of Ladbrokes’ own 2014 annual report, which has been mentioned. In Ladbrokes’ own words:

“Gaming machines and self service betting terminals drive growth”.

Proposed new Sections 172A(1) and 172A(2) provide sensible solutions by allowing licensing authorities to impose conditions on gambling premises, permitting them to have as few as zero FOBTs. They also allow licensing authorities to impose conditions requiring customer identification prior to play in an effort to address FOBT-related crime. The situation with FOBTs has been allowed to get out of hand and it is time the Government took a firmer grasp of it. Reducing the prevalence of harmful machines is a good thing and will make an important difference, but we can and should do even more, and I welcome the recent call for evidence issued by the Government on aspects of the gambling industry, including FOBTs.

I am also encouraged by the focus on reviewing stakes, which for B2 machines are far too high. Making machines less dangerous by reducing the B2 stake from £100 to £2, as the Bill of the noble Lord, Lord Clement-Jones, sought to do, should be our priority. I certainly will continue to advocate for such a change.

I strongly endorse Amendment 214, which represents a tangible opportunity for positive change which can be implemented now to help problem gamblers and their families, as well as communities and employees. I very much hope the Minister will support the amendment, as I, and clearly many Members in this Chamber, do.

[Lord James of Blackheath (Con)]

My Lords, in speaking to Amendment 214 I should declare two interests. First, I ran a chain of casinos in the Mediterranean at an earlier stage of my life, and I am therefore very familiar with the function of a roulette wheel. Secondly, I was chairman of the Jockey Club’s racing interests in the UK, so I was heavily dependent upon the profits coming from the bookmakers’ levy.

The Bill of the noble Lord, Lord Clement-Jones, was tabled several months ago and I am sorry that it has not gone further. In many ways, it is, as an entity, better than this amendment, and the Minister should give serious consideration to incorporating it into the Bill.

The points I need to make relate to the deep suspicions I raised at Second Reading about the honesty of the electronic roulette wheel in the FOBTs in reflecting the function of a roulette wheel, as I know it to be. I have probably done more analysis on this than anyone alive today, and I would like to do a lot more. I suspect two things are wrong with the wheels at present. First, they do not fulfil either of the two functions which I require as a standard for any honest roulette wheel. An honest wheel should result in 28 different numbers occurring in any sequence of 40 spins—that statistic is astonishingly accurate—and every number on the wheel should come up within a maximum of 121 spins. I have tested these theories over thousands and thousands of spins. For example, I tested the latter over sequences as high as 4,400 and found that there were 44 occasions on which each number came up a minimum of once, which confirms that theory.

As for the former theory, I cannot remember the name but I think it was the Gambling Commission that set up the original licensing arrangements for casinos years ago. It was an extraordinary commission because it went to the extent of installing a roulette wheel in its meeting room and having two croupiers spinning it all day long to observe what happened. As a result, it laid down very strict rules for roulette wheels. I can see no reason whatever why bookmakers should not accept the validity of the same rules for their electronic machines as for the metal and wood wheels in casinos. As things are, they produce very different results.

As a result of my criticisms, two days after our last debate I got a very angry letter from the bookmakers’ association. It said that I was a liar telling an untruth, was wholly wrong and was being offensive. I said, “I may be offensive but can you prove that I am wrong on the matters of fact? I want you to prove to me that you have a 28-number cycle in every 40 spins and that your whole wheel comes up in 121 spins. If you can’t prove that, then you are in fact dishonest in what you present as a functioning electronic roulette wheel”.

I do not believe they can do that but I would like the support of Parliament for this: I want them to give me a 5,000-number sequence for every electronic computer programme that they are running—and they have lots of them, as we have heard. They have so many different terminals that they cannot allow one programme to run so as to establish a pattern, because you could adapt the pattern from one and go and bet on it. You might be able to switch it down to your advantage and they will not do that. If they have six different betting shops, they will have six different programmes and I want those programmes to be subject to audit. I would like to audit them by matching with my own matrix, which I have developed. If they can give me 5,000-spin sequences certified by an accountant or a lawyer, it will take me six hours to say whether they have an honest wheel or not. I will do that for free for the whole industry, if it wants. If your Lordships think it sounds as though I need to get a life, you are probably right but I am obsessed with these numbers and I would love to do it.

In this case, I am so certain that it is wrong that after the previous debate I went on a betting shop crawl in Chichester, my nearest local town. I went round each of the main betting shops in it and sat down to watch what was happening on the electronic wheel. The first one that I watched was simply frightening. The man who had switched the machine on appeared to have £100 in folding money, well concealed in his pocket. He was pulling it out one £20 note at a time and feeding it in to charge it up. He had decided to bet on five numbers: 32, 15, 19, four and 21. These are the five numbers adjacent and to the immediate right of zero on the wheel. Effectively he should have had a six to one chance, as it is five numbers out of 37, but of course he was having to put a £1 chip on each of the five numbers. If he won, he got only £1 back for it and lost £4, so he was actually betting at 5.2 to one against in real odds. He would have had to have six successive win spins in a row just to break even on his £100—an impossible characteristic—yet the man was sitting down to give away £100, without any possible benefit coming to him.

The betting shop quickly moved in and asked me what I was doing. I said that I was doing social studies and I was told, “You don’t do them here—get out”. So I went off to the next betting shop and lasted about five minutes there as well. Eventually I went to six shops. What I found was a horrendous change that has occurred since the noble Lord, Lord Clement-Jones, brought his excellent Bill in. The spin cycle we were worrying about then was running at, I think, two minutes; it has now gone to 10 seconds. This is so fast that you cannot even think what your name is, let alone what you are betting on. At 10 seconds a spin, it is simply draining a man of money without any way of him knowing what he is doing. My great proposal to your Lordships today is: whatever we do with this clause or with the Bill of the noble Lord, Lord Clement-Jones, we should write in a demand to go back to a minimum of two or three minutes, or whatever it was to be. Any betting shop which does not do that should be summarily closed and will not be allowed to open until they have demonstrated the accuracy of their data in the form that I have dictated. They would be closed until further notice.

However, what I think is happening is that the bookmakers read our Hansard and decided to make a firm commitment to a betting cycle which would be better than the figure they were allowing. They have therefore decided to cut it to 10 seconds now, so that they will have more to negotiate and give away when the crunch comes. Let us put it in now and start closing them. We should get some authority in to stop this nonsense. Wherever there is a 10-second cycle going on in a betting shop, close it down now. We should do it urgently and make an example of them. I rest my case.

Deregulation Bill

Baroness Howe of Idlicote Excerpts

Monday 16th March 2015 Lords Chamber

[Lord Gardiner of Kimble (Con)]

My Lords, the Government are very clear that the review of the TV licence enforcement regime is a high priority. The overriding aim is to ensure that the system is appropriate, proportionate and fair, and that it represents the best value. This independent review, led by David Perry QC, will identify whether the current enforcement regime is appropriate and proportionate, and will ensure that there is a strong, evidence-based case for any potential changes to the TV licence enforcement regime. Due to the importance of this issue, the decision was taken to commence this review in advance of Royal Assent, while retaining a clause that commits the Government to carry out the review to ensure that this important piece of work is completed in a timely manner. The findings of the review, which will be complete by the end of June 2015, will be laid in both Houses of Parliament and presented to the BBC Trust.

The proposed amendments made in the other place in lieu of Lords Amendment 38 place additional reporting commitments on the Government, but still require that any changes to the licensing regime may not come into force before 1 April 2017. The amendments require the Government of the day to consider the report promptly and properly, setting out their response and the next steps to be taken within three months of the report’s completion. The Secretary of State must report to the House, setting out whether the Government propose to exercise the power to change the sanctions that apply to the failure to have a TV licence, and, if so, detailing the next steps to be taken and to what timetable.

As I have said, the proposed amendments also require that any regulations may not be made so as to come into force before 1 April 2017. We have always maintained that the report’s findings, and potential next steps, should be considered in the context of charter review, and this remains the case. The BBC’s current charter expires on 31 December 2016. The Government will not begin charter review until after the general election, and there is no set process for how the review should be conducted, or when. It will be for the Government of the day to take forward any further actions as they see fit.

We must not pre-empt the recommendations Mr Perry will make, particularly as the public consultation element of this work is currently ongoing. However, it remains the case that any next steps will need to be considered within the scope and timing of the charter review, and it will be for the next Government to ensure that the right enforcement regime for licence fee payers, the courts and indeed the BBC itself is in place. Our amendments ensure that the Government of the day will be committed to consider whatever recommendations David Perry QC wishes to make and to set out their intentions. Any changes that may be introduced must follow a clear timetable to be set out in the Government’s Statement, leading up to when the Secretary of State’s regulation-making power commences in April 2017. I beg to move.

[Baroness Howe of Idlicote (CB)]

My Lords, following the successful vote in your Lordships’ House a week or two ago, we are very pleased to see that the Government have accepted our important amendment to the Bill by including it in their own Motion A. What we now have before us is a cast-iron guarantee that any proposed changes to the licence fee enforcement regime will not take place until at least 1 April 2017 when the current licence fee settlement expires.

In particular, I would like to thank the noble Lords, Lord Stevenson, Lord Clement-Jones, and Lord Grade, for their invaluable support in this matter in signing the original amendment. This cross-party support demonstrated the broad strength of feeling on this whole issue. Any changes imposed before April 2017 would without doubt have had an impact on the BBC’s revenue. The consequences for the BBC’s funding need to be fully considered. Funding, along with everything else to do with the BBC, must be looked at in the context of the upcoming charter review and licence fee settlement.

We recognise that the David Perry QC review into licence fee enforcement is currently taking place, and I understand that the BBC is engaging with the review. Our amendment, now included in the Government’s Motion, does not affect the review’s recommendations or seek to change the outcome, but focuses on the timing of any implementation and ensures that the recommendation can lead into wider discussions that will affect all licence fee payers.

Deregulation Bill

Baroness Howe of Idlicote Excerpts

Thursday 5th February 2015 Lords Chamber

[Lord Skelmersdale (Con)]

My Lords, I am the first to agree with my noble friend Lord Clement-Jones that this review is, if anything, overdue and that it is quite wrong for the public sector broadcasters to be subsidising cable operators in this way. But what I find absolutely fascinating is that the debate on Clause 64 hinged on the Government putting the cart before the force. Now my noble friend is putting exactly the opposite thought forward, and I would be grateful if, when he winds up on the amendment, he would explain why.

[Baroness Howe of Idlicote (CB)]

My Lords, I very much support the amendment. There is a clear case for removing a superfluous piece of legislation such as Section 73, which is causing demonstrable damage to the public service broadcasting system and leaking value each and every day. Deregulation to remove harmful out-of-date legislation makes sense and is the point of the Bill, but I do not think anyone can sensibly argue that the prominence we give to public service broadcasters is damaging or harmful or needs deregulating. Put simply, what is the point of public service content if it is not discoverable?

Prominence enables huge levels of investment in original UK content by our public service broadcasters each and every year. Prominence is a key pillar of the PSB system and removing it or even watering it down would be nothing short of a death knell for public service content in this country. Prominence not only ensures that people can actually find the public service content we require our PSBs to produce, but it enables the PSBs that are funded by commercial means to maximise viewing figures and therefore maximise the value of the advertising they sell. This is what enables them to pay for what is often loss-leading content, such as impartial news and current affairs coverage, which we as a society have deemed important and require them to produce because the market simply would not produce this kind of content by itself. I very much hope that the amendment will be accepted, and I support it.