Gambling Act 2005 (Monetary Limits for Lotteries) Bill

Lee Dillon Excerpts

2nd reading
Friday 24th January 2025 Commons Chamber

[Wendy Chamberlain]

My hon. Friend has just exemplified what I said earlier. Every single one of us has probably attended drop-ins in Parliament and seen the benefit of charity lotteries in our local communities.

Fundraising is not a one-off thing. There will be other projects that were not successful in getting funding, or all the funding they needed, because it has not been available under the current system. I would like to bring in some of those charities’ voices directly. I hope the Minister is aware that before Christmas, over 100 charity leaders wrote to the Prime Minister asking him to support my Bill. They pointed to the absurdity of charity fundraising being restricted. They noted, and I have to agree, that

“supporting this vital reform would send a strong message on the Labour Government’s backing for, and belief in the third sector and a vibrant, well-funded society.”

I spoke with one the signatories of the letter, Children First, earlier this week. It said:

“In a financial climate that is more challenging than ever, we rely on charitable fundraising to deliver the essential services we provide to children and families across the country. Importantly,”—

and I think this is a very important point—

“the unrestricted nature of the funding means we are more able to use the money in the most effective way for children and families, bridging gaps in the ever-complex funding environment. Many of our services rely on a jigsaw of income, sometimes stretching to 20 different sources all with conditions, data gathering and reporting requirements. This, in turn, has an impact on how much we can do for the children and families we support as time and energy is locked into sustaining funding as opposed to supporting families.”

[Mr Lee Dillon (Newbury) (LD)]

My hon. Friend talks about the financial pressures that charities face. Volunteer Centre West Berkshire has said that charities in West Berkshire will need to find an additional £383,000 next year just to stand still, because of the increase to the minimum wage and national insurance contributions. With the Government causing charities concern through national insurance, does she agree that her Bill would allow them to ameliorate some of that harm?

[Wendy Chamberlain]

Yes, I absolutely agree. Indeed, in a Westminster Hall debate just last week, where the shadow Minister, the hon. Member for Isle of Wight East (Joe Robertson), also spoke, I highlighted that very thing: the national insurance increase will hurt charities, and there is an opportunity for the Government, through my Bill, to ameliorate some of that.

Children First also said that it understands that technical barriers place limits on the way that charity lotteries provide funds and that it supports calls to remove the cap. There are about 170,000 charities across the UK. Of course, not all of them want or need charity funding, but many thousands do.

There are many reasons why the House should support the Bill. I understand some of the Government’s concerns. I have been told that they are worried about the impact on the national lottery, considering the Secretary of State’s statutory obligation to maximise its success. However, I would argue that there is no evidence to suggest there is a detrimental impact on the national lottery from charity lotteries. The Gambling Commission has investigated this three times in the last 15 years, most recently in October 2017, and found no statistically significant effect of charity lotteries on national lottery sales. That was confirmed again in 2022 in an impact assessment by Regulus Partners.

My goal with the Bill is to keep the distinct nature of the national lottery by protecting its much larger prize pots. This weekend, the lotto’s prize is £4 million, while the Euromillions’ is £83 million. In changing the law on sales, we want to change the current price cap to keep the prize maximum at £500,000. It is a very different ball game, and the Bill supports the evidence that players of one lottery often play the other as well.

I know that the Government are awaiting updated research. I suggest that the Government choose to progress my Bill today and consider the research at Committee stage or later. From my conversations with the Minister, I understand that the Government are determined to hold their current position that they want to see the evidence first. I hope that the Minister will confirm the commitment to make the research public when it is received and to update the House on the Government’s review of the research before the summer recess. I hope she will then set out any legislative action the Government are prepared to take.

I know that the Minister supported these reforms in opposition and is therefore sympathetic to the purpose of the Bill. I am sure she is aware of the money charities in her constituency have benefited from and will continue to benefit from. The Station House Community Association in her constituency notes the following in a project description:

“this grant has supported our running costs—just like everyone else all our bills have increased and we need to cover these costs.”

As my hon. Friend the Member for Newbury (Mr Dillon) highlighted, this is an issue we hear everywhere, particularly now that charities are faced with the additional cost of national insurance contributions. Increased fundraising to counterbalance these additional costs will be increasingly vital over the years ahead if charitable projects that we all champion are to survive. The Bill offers a way for the Government to support such charities, and at no cost to the taxpayer. It is a win-win in my view.

Before I finish, I would like to touch on gambling harms. I am a strong believer in reforms to the sector to protect people from problem gambling. Public Health England has said that there are more than 400 gambling-related suicides a year and that it costs the UK £1.4 billion. Extrapolation of this data by Gambling with Lives suggests that up to 650 gambling-related suicides take place across the UK each year. My party wants to see a compulsory levy on gambling companies to fund research, education, treatment, restrictions on advertising and the establishment of a gambling ombudsman.

The seriousness of addictive, problem gambling cannot be underestimated. I want to outline the steps that the People’s Postcode Lottery takes to tackle it. Players sign up to a monthly subscription to be entered into the draws. The number of monthly subscriptions for a single player is limited, and draws take place throughout the month with results published accordingly. One of the most influential factors in the development of gambling problems is the ability to gamble in real time over and over again. Charity lotteries do not allow real-time gambling, so it takes away the ability to chase a perceived high. Lotteries are widely recognised as being low-risk games compared to other forms of gambling.

To conclude, I feel confident that there are only benefits to the Bill. There are benefits to the charity sector, which is facing unprecedented pressures, to local charities and community projects, and ultimately to all of our constituents.

Employer National Insurance Contributions: Charities

Lee Dillon Excerpts

Tuesday 7th January 2025 Westminster Hall

[Mr Lee Dillon (Newbury) (LD)]

It is a pleasure to serve under your chairship, Ms Vaz. I thank the hon. Member for Isle of Wight East (Joe Robertson) for securing the debate. A reference was made to the unintended consequences of the Government’s decision, but actually they are not unintended consequences; there was a dereliction of duty because the Government did not do the impact assessments that they should have done to understand what they would do to our charity sector.

I recently visited West Berkshire Mencap in my constituency of Newbury. As a result of the financial pressures, the organisation will need to find an additional £163,000 to cover national insurance contributions, and its agency costs are projected to rise by approximately 12%. I also recently met Rachel Peters, the chief executive of Volunteer Centre West Berkshire, which last year provided advice and support to 403 individuals on volunteering. She expressed grave concern about the impact that the changes will have in Newbury, with staffing costs alone projected to rise by 18%. Overall within the charities that she represents, an additional £387,000 will need to be found in the next financial year, with hardly any time to plan.

Horseracing

Lee Dillon Excerpts

Thursday 24th October 2024 Westminster Hall

[Mr Lee Dillon (Newbury) (LD)]

It is an honour to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for West Suffolk (Nick Timothy) on securing this important debate.

It is an honour to represent a constituency that includes both Newbury racecourse and the Lambourn valley, which is home to some of the finest trainers in the country. Lambourn valley supports 34 trainers and employs more than 750 full-time workers, accounting for 30% of all jobs in that area. In addition to providing employment opportunities, the facilities make a major contribution to the local economy, with the gross value added from Lambourn estimated to be more than £22 million.

Nearly 15 miles south of the Lambourn valley, in the southern part of my constituency, lies Newbury racecourse. Unfortunately, our general election count could not be held there because an evening meet was going on. The venue hosts 31 meets annually, including the winter festival, and more than 23,000 people can be hosted both indoors and outdoors, generating an additional £5 million in gross added value.

It is clear that the industry is at the heart of my constituency, and it plays a vital role in ensuring the continued prosperity of the local economy. It does and can do more to support Labour’s focus on economic growth, but it needs support from the Government.

The hon. Member clearly laid out six asks of the Government. Although I do not want to repeat the excellent arguments he made, I put on the record my support for those measures. In particular, I will briefly address his sixth point regarding responsible gambling. I agree that none of us wants to see problem gambling go unchecked, but with the use of online platforms it is surely not beyond reason for sites to allow different access for different betting needs. A horse owner recently remarked to me that he could buy a horse for £40,000 without any checks, but he now has to provide bank statements in order to stake a couple of thousand pounds on a race. We need to find a better balance between protecting those most at risk and allowing people to spend their money freely without the involvement of the state and greater regulations.

I recently had the privilege of meeting trainers in Lambourn to discuss the importance of the industry to the local community and learn more about their outstanding efforts in caring both for horses and for the surrounding environment. During our conversation, they shared their concerns about the financial difficulties they face, including being forced to sell land just to stay afloat. The situation is unacceptable. Many people, both in my constituency and throughout the country, depend on the industry economically and socially.

It is vital that the Government take action to ensure the survival and continued success of the horseracing industry. The six asks from the industry, as raised by the hon. Member for West Suffolk, will clearly help but, outside of direct interventions and tax changes, more needs to be done to support the industry indirectly. For example, balancing support for local economies such as Lambourn while balancing the environmental impacts of building in a national landscape is key.

Without a sensible approach, the horseracing industry of my home will struggle to continue. Stables are struggling with recruitment because workers are unable to find places to live. The median house price in Newbury is £99,000 higher than the median house price in the country as a whole, starting at £385,000. Prices are out of reach for most. If stables are unable to recruit staff due to high housing costs, they may be forced to close for longer periods, leaving them without enough staff to care for and train the horses properly. Increasing the availability of social housing would be a significant step forward in addressing that issue.

We have also seen nutrient neutrality rules bring developments to a halt across the country, including in Lambourn, and we urgently need the Government to provide better advice and guidance to developers and local authorities so that development can continue while we protect our precious waterways.

The community of Lambourn is currently developing its own neighbourhood development plan, and it includes a focus on the impact of planning policy on the horseracing industry. This forward-thinking approach to better inform planners and decision makers of the unique aspects and challenges of the horseracing industry is welcome and will add real context in the consideration of planning decisions. More financial support from the Government is needed, along with a stronger commitment to build social housing. We must not overlook the incredible work the horseracing industry does.

Newbury racecourse has recently been named a finalist in two categories at the Racecourse Association showcase awards, being recognised for its consistently high operating standards. The awards take place on 7 November, and I wish Newbury racecourse the best of luck. I am due to visit the racecourse tomorrow for a behind-the-scenes tour followed by an exciting afternoon watching the races. It is always exciting to experience this wonderful sport at first hand and witness the hard work of the jockeys, trainers and yard staff in action. Historic sports like horseracing are essential for not only preserving traditions but sustaining the local economy. It is vital that we ensure its future for many years to come.