Statutory Gambling Levy

Jeff Smith Excerpts

Tuesday 7th June 2022 Westminster Hall

[Jeff Smith (Manchester, Withington) (Lab)]

It is always a pleasure to see you in the Chair, Mr Betts. I pass on the apologies of the shadow Minister, my hon. Friend the Member for Pontypridd (Alex Davies-Jones), who is in Committee, as indeed is the Under-Secretary of State for Digital, Culture, Media and Sport, the hon. Member for Croydon South (Chris Philp) —although it is always a pleasure to see the Minister across the Chamber.

I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) on securing this debate and on her, as always, excellent and comprehensive speech. I congratulate all hon. Members who have taken part, including my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones). My hon. Friend the Member for Sheffield Central (Paul Blomfield) spoke powerfully about his constituent Jack, and importantly identified the shortfall in diagnosis and treatment, and the lack of specialist gambling support across the country. I have had a number of meetings with former gambling addicts, and they have often identified that it is really hard to get treatment where they want, as there is a bit of a postcode lottery. Anybody who suggests that an increase in funding is not necessary for the support and treatment of gambling addicts is completely wrong. We have a decided lack of specialist treatment, and we really need to get extra funding into it. That is the heart of the issue.

The right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) was absolutely correct when he said that the people speaking in this debate are not anti-gambling; we are anti-gambling harm. We need to make that important distinction.

As I said when we most recently debated gambling in this place, reform is long overdue and the Government have been dragging their feet. Many forms of gambling are a pastime that lots of people enjoy. They are a source of employment and economic activity for communities in towns and cities across the country. Nobody sensible wants to send gambling to the underground or the black market, but we have to recognise that it can also be a highly addictive activity that damages families and communities. That is why we need action, not more words, from the Government. Time and time again, as we have heard, we have been promised legislation only for it not to materialise.

As we have heard from a number of hon. Members— I have heard this graphically from the relatives of people who have died by suicide and from former gambling addicts—the business models of some gambling companies, and some gambling products, add to significant harms, leading to high levels of problem gambling, mental health issues and, sadly, suicides. Regulation is long overdue, particularly since the huge growth in online and mobile gambling. Smartphones give opportunities to gamble pretty much anywhere, anytime, and the unregulated online spaces fail to protect users.

As we have heard, the Gambling Act 2005 is the basis for the regulation of gambling in Great Britain, but it has not been updated since it was passed and it is not fit for the digital age. The key Conservative manifesto pledge in 2019 was to review gambling laws in response to mounting concerns about how this £14 billion-a-year industry is regulated. The White Paper was originally due to be published before the end of 2021. Labour has been calling on the Government to bring forward gambling legislation for a long time. In 2019, we also committed to introducing a gambling Act.

The delay in tackling this issue is costing money as well as lives. The Public Health England review found that the annual economic burden of harmful gambling is £1.27 billion. That is £647 million in direct costs to the Government and £619 million of wider societal costs associated with suicides. It is about not just lives but money, and we need to address that issue.

Will the Minister confirm when exactly we will see the White Paper? We definitely need to see it in the coming weeks. I agree with the hon. Member for Inverclyde (Ronnie Cowan) that we need to see it long before the summer so we can start discussing these issues. It needs to build on the consensus across the House that we need to bring this regulation into the digital age.

The all-party parliamentary group for gambling related harm, chaired by my hon. Friend the Member for Swansea East, who has campaigned magnificently on this issue, recommended a mandatory levy on the gambling industry to fund research, protection, treatment and education, and address gambling-related harms, including to consider the links between gambling and suicide. At the moment, as we have heard, gambling firms have no mandatory requirement to fund addiction research and treatment services. Many do so through the voluntary scheme, but it is variable and uncertain. That uncertainty makes it difficult to plan long-term projects.

The five big gambling companies have committed to paying 1% of their gross yields towards safer gambling initiatives by 2023, but the variation between online products and their donations is a real issue. The legal power to impose a levy on the gambling industry has existed since 2005, but it has never been used due to the Government’s insistence that the industry should support harm-reduction work on a voluntary basis. I think that the highest figure was last year, with £35 million coming through voluntary donations. It has been estimated that a statutory levy would increase that to around £140 million, but we must put that in perspective: the gambling industry spends £1.5 billion a year just on advertising. That is the scale of the issue. The Government must take this proposal seriously.

My hon. Friend the Member for Swansea East made the important point that a levy should be smart or differentiated to tackle the most dangerous forms of gambling without harming, for example, bingo halls. I should be grateful if the Minister would outline what consideration the Government have given the proposal. We need clarity about what will be in the White Paper and how a statutory levy might work. We absolutely need to tackle gambling harm across the board, so that the families of those who have been immeasurably harmed by gambling can have confidence that what has happened to their loved ones will not happen to others.

[Mr Clive Betts (in the Chair)]

May I ask the Minister to ensure that there are a couple of minutes left for the mover to reply?