Gambling Harm (Social and Economic Impact of the Gambling Industry Committee Report)

Lord Duncan of Springbank Excerpts

Wednesday 27th April 2022 Grand Committee

[Lord Butler of Brockwell (CB)]

My Lords, I declare my interest as a vice-chair of Peers for Gambling Reform. I, too, was a member of the House of Lords Select Committee on the Social and Economic Impact of the Gambling Industry, which was so excellently chaired by the noble Lord, Lord Grade, and supported by a splendid secretariat, as has been said.

I found membership of this Select Committee a sobering experience. As we have heard, gambling is a very big industry and it brings enjoyment to many people. but there is another side of the picture. The committee heard how addictive gambling causes homelessness, loss of employment, imprisonment, depression, alcohol dependency and, most seriously, suicide. When we take into account the figures for problem gambling, particularly among young people, as quoted by the noble Lord, Lord Grade, it is clear that this is a really serious problem in our society. All political parties have acknowledged that by committing themselves to addressing it—and that now needs to take place. But effective action to prevent the excesses, while allowing the pleasure to continue, needs joined-up thinking across government.

I and the Select Committee feared that my old department, the Treasury, would be one of the things that would drag the anchor on reform of this problem. We thought the Treasury would be inhibited by fear of killing the goose that lays the golden egg, in the form of contributions to the Exchequer each year. But this is to look at only one side of the account. It is not just about the yield from the revenue, but, even if it were, Peers for Gambling Reform commissioned NERA Economic Consulting, as the right reverend Prelate said, to assess the economic effects of the reforms that the Select Committee recommended. NERA’s report is well worth reading. It assessed, first, that the industry’s profits are easily robust enough to exceed the effects of a mandatory levy, which could fund education and treatment of those addicted.

On the Exchequer side of the account, NERA’s report assessed not only that there would be a net gain to the Exchequer on the revenue side, but that this would be all the greater when one takes into account savings in the amount that the Government currently spend on dealing with the effects of gambling, primarily through healthcare costs. This really is a problem that can be addressed only by looking across the range of departments. In addition, by diverting some of the expenditure by the public in the form of problem gambling to other sectors that are more labour-intensive, there could be a net gain of some 30,000 jobs to the economy. So it is not simply an Exchequer matter; this is an issue where there are gains to the economy as a whole—

[The Deputy Chairman of Committees (Lord Duncan of Springbank) (Con)]

If the noble Lord will forgive me, I am afraid that we are about to have a vote. We will take a small moment to press our buttons and then reconvene in a moment. I apologise to the noble Lord; he was mid-flow.

--- Later in debate ---

[The Deputy Chairman of Committees (Lord Duncan of Springbank) (Con)]

My Lords, we would normally delay for 10 minutes for a vote, but I suspect your Lordships have all pressed your buttons already. We might be able to continue if the Committee does not mind occasional interruptions by the jingling Bells. Shall we do that? Lord Butler, do you wish to continue?

[Lord Butler of Brockwell (CB)]

My Lords, before the interruption I was saying that this is not just an issue for the Exchequer. There are gains for the economy as a whole if expenditure by the public in the form of problem gambling is reduced and diverted to other sectors which are more labour-intensive. The gambling industry itself is not very labour-intensive and the expenditure of those sorts of sums will generate more employment elsewhere. NERA has assessed that there could be a net gain to the economy of as many as 30,000 jobs and up to £400 million in employee earnings, which of course in itself would generate revenue to the Exchequer.

The coming publication of the White Paper is a once-in-a-generation opportunity to address deep-seated social issues. By addressing the harms of addictive gambling, the Government’s review has a chance to bring about not only a major social reform but one which is economically viable and fiscally advantageous.