Financial Risk Checks for Gambling

Debate between Iain Duncan Smith and Danny Kruger

Monday 26th February 2024 Westminster Hall

[Danny Kruger (Devizes) (Con)]

My right hon. Friend makes an important point about the need for balance in this policy. Having spoken to a lot of the breeders and trainers in my constituency in Wiltshire, I think there is a very strong argument against these proposals. We have also heard the case for them.

The fact that this debate is so well attended and that there is so much controversy about these proposals suggests to me there is a problem with the policy-making process. When I was a civil servant at the Department for Digital, Culture, Media and Sport—in fact when my right hon. Friend the Member for West Suffolk (Matt Hancock) was Secretary of State—I saw how policy making is done, and I think there is a problem with it.

The people who are the experts or are most likely to be affected by the policies that we make here are not properly involved in the deliberations that go into policy making. I wonder whether my right hon. Friend agrees. Could he make the point to the Minister that, given the degree of controversy over these proposals, we need to delay the implementation and involve a wider group of stakeholders and experts in the consultation, which should have happened before now?

[Sir Iain Duncan Smith]

My hon. Friend has made his point through me to the Minister, who I am sure will deal with it. I will say that the consultation did not happen overnight—it has been going on for some time—but I accept that others may think that they have not had enough time. In fact, the gambling industry could have made a bigger impact by taking full part, rather than not always wanting to be intruded on by questions. As has happened with the group on many occasions, many chose to stay away.

I also make the point that few people will be impacted by the checks. Many of the concerns set out by punters involve the checks that the industry is already carrying out. It intrudes like mad on behaviour—that is the biggest area. It wants to deal with the behaviour of punters because, as we have heard, the gambling industry makes the vast majority of its money from those who are losing money at a rate of knots.

In fact, my hon. Friend the Member for Shipley made an interesting point, which I agreed with: often, those gamblers who have been successful end up being blocked. That information travels across the gambling companies, so a gambler who happens to be moderately or very successful finds themselves taken off the list of all those companies. They are not about openness, freedom and choice; they are the last people to be interested in that. We may be debating this, but they are not, because they do not want to lose money themselves.

The important point is that the gambling industry itself has not shown a huge amount of respect for the horseracing industry. Many betting shops are encouraged to cross over to FOBTs, or fixed-odds betting terminals, which are now B3s, and to SSBTs, or self-service betting terminals, which allow cash remote betting inside shops. The remote sector has long looked to cross-sell away from horserace betting to betting on other sports.

One thing that I want to make absolutely clear is that the gambling companies are not that interested in the success or the future of horseracing per se, but just in how much money they can take out of it. I am desperately keen that the horseracing industry should thrive. I absolutely believe it offers huge prospects for those in rural areas. It is a hugely successful and now global industry, and no one supports it more than I do.

I will end this by saying simply that the debate should not be about the absolute purity of no checks. We are here to look at, first, what the levels are and, secondly, how intrusive they will be. If we could achieve that and the right decision is made finally by the Minister, that will mean that the situation will be much better and, at the end of the day, that fewer people will lose their lives or become so addicted because of the desperate nature of what they have been doing in darkened rooms and behind closed doors. We want to stop that and to save lives.

Procurement Bill [Lords]

Debate between Iain Duncan Smith and Danny Kruger

Report stage
Tuesday 13th June 2023 Commons Chamber

[Sir Iain Duncan Smith]

I am fascinated by the speech my hon. Friend is making, because he is right in one sense about this. We did a report at the Centre for Social Justice about four or five years ago where we looked at productivity. So often we make international comparisons, but the whole figure for productivity contains that which a country wants to put into it. For example, France does not put health or education into its productivity measures. Health and education have shocking productivity outcomes in terms of cost, which means that France is able to declare itself as having a higher level of productivity. London and the south-east have the highest productivity in Europe, but the real story is that the rest of the UK does not meet the average for the whole of the Europe, which tells us what our problem really is.

[Danny Kruger]

My right hon. Friend makes important points, and I recognise the difficulty of comparing our productivity figures with those of other countries. The comparison I am making is with our own recent history, but he is absolutely right in what he says. Indeed, the point about what is measured matters enormously. In our debates, we often make the mistake of thinking that the only things that matter are those that can be easily quantified. That is a great challenge we face, particularly in the social sector.

The Government are rightly committed to improving the efficiency and productivity of the public services—I absolutely support them on that—but we face another great challenge that does not get enough of a mention: the need to reduce demand on the system as a whole. We are spending so much not just because we are inefficient, but because the demand on the system is so high. I do not need to run through all the details of the enormous budgets we spend on social breakdowns and the consequences of social problems that we should have averted, in criminal justice, in the health budget, in what is called “social protection”. Some £150 billion is categorised under “social protection” in the public finances—not pensions, but paying for people who have tough lives. We should be seeking to reduce the cost of those budgets, because each one of those costs represents, in a sense, people in trouble. Both for financial and social reasons, we should be trying to reduce that expenditure.

How do we do that? We need social reform. I am not going to bore the House with long thoughts on that, but we need public sector reform, as has been mentioned a bit today, and that includes procurement reform. I acknowledge what Labour is suggesting in some of its amendments and in some of the speeches we have heard: an objection to the whole model of outsourcing. I recognise the objections to some of the failures of public service management—new public management—over the past generation, and some of the challenges of outsourcing and of competition in the public sector or for public services. However, I do not think insourcing everything is the answer. Reverting to a pre-1990 model of everything being delivered by the central state, as one of the amendments and Unison are championing, is not the right model. We need a better model of outsourcing that relies much more on civil society and, in particular, on the local, community-based services in which the UK is so rich and which do such a great job. We need to be able to measure their value properly and commission their services effectively. That is what this Bill aims to do.

I declare an interest, in that I set up and ran for many years projects working in prisons and with youth services. I have personal acquaintance with the challenge of EU procurement, not only social fund commissioning, but central and local government contracts. None of this is easy and I am familiar with all of that. I am familiar with the frustrations of getting on the frameworks; expressing interest; bidding through tenders; and being treated as bid candy on a long contract. I am also familiar with going through a pointless competition process where there is only one obvious provider—the one that helped to design the service—which still has to jump through loads of competitive hoops only for some other random provider to come in and swipe the contract; I speak bitterly from experience. The challenges that small social enterprises face are significant.

The difference between procurement and commissioning is not often acknowledged. We often have procurement departments doing work that is too complicated for them on their own. We need to have proper commissioning where people who are paying for a service work collaboratively with providers, stakeholders, service users and other parts of the system. Everybody needs to bring their assets, resources, skills and experience to co-design the service that is needed locally. The Bill brings us much closer to that model. I greatly welcome the measures that have been included, especially around the simplification of tendering. The single portal is an important development and it is good for transparency as well. The Tell Us Once registration is essential, as is the help that will be given to SMEs and social enterprises, including the active reduction in the barriers to tendering, lower reporting requirements and so on.

Most of all there is the shift from the most economically advantageous regime to the most advantageous regime. That small excision of the word “economically” is an important recognition of the point that my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) was just making about the need to go beyond a purely commercial estimation of the value of social projects. I would go further. In 2020, I wrote a report for the Government who were trying to maximise and sustain the enormous contributions that communities were making during the first lockdown. I suggested that we recognise and declare that the whole of Government commissioning—the whole of public service spending—is to deliver social value for the public. Essentially, that is what we all believe and it should be stated much more explicitly in my view. I just bring the House’s attention back to the Conservative Government’s Social Value Act 2012, which gets those principles right.

I recognise that we need to take enormous steps forward. I honour what the Government have been doing around national security. I also honour the steps that have been taken to ensure greater opportunities for SMEs and social enterprises, and I commend the Bill to the House.