Fixed Odds Betting Terminals

Lord Watson of Wyre Forest Excerpts

Thursday 1st November 2018 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport to make a statement on the Government’s new approach to fixed odds betting terminals.

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

The Government do not have a new approach to fixed odds betting terminals. The reduction in stakes for fixed odds betting terminals is an important change and it is the right thing to do, but there are several factors to consider in determining the date from when it should take effect. The most important, of course, is to do this as soon as possible to prevent further harm. The Government were urged in an early-day motion in June this year and by the all-party group on fixed odds betting terminals not to wait until April 2020 to do so, and we have not done so. But it was also right to consider planning to reduce the effect of job losses for those working in betting shops on the high street and allow time for that planning to take effect.

It also has to be recognised that, right though this change is, money for public services coming from the use of FOBTs has to be replaced, or public services will have less funding. The Chancellor has decided to do that with an increase in remote gaming duty, and it is right that that increase happens at the same time as the FOBT stake change. There also needs to be a proper period of notice after the setting of that new rate before the change to remote gaming duty takes effect. The Government have therefore concluded that October 2019 is the best date to make both changes.

However, the Government have always made it clear that the issue of problem gambling is complex and cannot be addressed through these measures alone, so work has been continuing to strengthen protections around gaming machines, online gambling, gambling advertising and treatment for problem gamblers. The Gambling Commission launched a consultation on protections around online gambling last month. This examined stronger age verification rules and proposals to require operators to set limits on consumer spending until affordability checks have been conducted. There will be tough new guidance from the Committee of Advertising Practice on protecting vulnerable people, with further guidance on protecting children and young people introduced before the end of the year. Public Health England will carry out a review of the evidence on the public health impacts of gambling-related harm and, as part of the next licence competition, the age limit for playing national lottery games will be reviewed to take into account developments in the market and the risk of harm to young people.

While we want a healthy gambling industry that contributes to the economy, we also need one that does all it can to protect players. This is a significant change that will help to stop extreme losses by those who can least afford it, and we are taking decisive action to ensure that we have a responsible gambling industry that protects the most vulnerable in our society.

[Tom Watson]

It was a very good day for both sides of this House back in May when the Minister for Sport and Civil Society, the hon. Member for Chatham and Aylesford (Tracey Crouch), announced this document and that the Government would reduce fixed odds betting terminal stakes. Everyone on both sides of the House was led to believe that that cut would take place in April 2019, at the start of the new tax year. Why was that? Because in answer to a written parliamentary question, the Minister herself said that the enabling statutory instrument would be taken this autumn and verbally confirmed, in a minuted meeting of the all-party group on FOBTs, that that would be the case.

On Monday this week, the Chancellor announced that the cut in stakes would be further delayed by six months. This is extremely disappointing, not least because the Secretary of State’s predecessor also implied to the hon. Member for Inverclyde (Ronnie Cowan) that April would be the date.

Research shows that half of people struggling with problem gambling have had thoughts of suicide. The bookmakers will pocket an estimated £900 million because of this delay. This amounts to a betrayal of the promise made by the Secretary of State’s two predecessors and of the Government’s own three-year review, which was meticulously conducted by the hon. Member for Chatham and Aylesford. When the Government themselves have admitted the social blight of FOBTs, it seems incomprehensible and inconceivable that they would delay a policy supported by many people on both sides of the House and in both Chambers.

Has the Minister resigned? If not, why is she not here answering this urgent question or sitting by the Secretary of State on the Front Bench? She has presumably had time to freshen up since travelling on the red eye from the US.

When did the Secretary of State read the report on gaming machines and social responsibility measures? He failed to answer the question earlier in oral questions from my hon. Friend the Member for Cardiff West (Kevin Brennan). Had he read it when he indicated to the DCMS Select Committee that the policy could be delayed? What discussions did he have with the hon. Member for Chatham and Aylesford before he decided to delay the policy? On what dates—I have informed his office of this question—did he meet the hon. Member for Shipley (Philip Davies), a well-known advocate for the industry, to discuss FOBTs?

The hon. Member for Chatham and Aylesford did the right thing in announcing this policy, and the House supported her, as did those working to eradicate gambling addiction. In capitulating to the gambling industry, the Secretary of State has not just let the victims of gambling addiction down; he has let his own team down, and ultimately he has let himself down.

[Jeremy Wright]

My hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) is doing an outstanding job as the Sports and Civil Society Minister, and the hon. Gentleman is right that she deserves a large part of the credit for the substantive change the Government are making—a decision, by the way, that the last Labour Government did not make and which now falls to us to make. He asks why she is not answering the urgent question. The urgent question is about a change in Government policy. As I have explained to him, there is no change in Government policy, and anyway I take responsibility for policy made in this Department. The Government collectively make decisions on these matters, as in the case of the decision I have explained to the House.

The issue of the timing is important, so let me try to explain it again. The hon. Gentleman is right that the Government announced in May that their intention was to reduce FOBT stakes from £100 to £2. As I have made very clear, that was the right decision to make, but they did not set out at that time the point at which the change would be implemented. He says that everybody knew it would be in May 2019. That is his argument to the House today. I remind him of the text of early-day motion 1440, dated 20 June 2018—after the announcement in May—and which has 48 signatures on it:

“That this House…notes with equal concern that the stake is not due to be reduced until April 2020”.

In addition, we heard representations—understandably —from the all-party group saying that April 2020 would be too late. We agree, hence the decision taken is not to make this change in April 2020, but to make it earlier. I have heard language twisted to various uses in this place, but the idea that a move from April 2020 to October 2019 is a delay is going a little far. It is not a delay. [Interruption.]