Statutory Gambling Levy

Debate between Ronnie Cowan and Scott Benton

Tuesday 7th June 2022 Westminster Hall

[Scott Benton]

There is clearly more work that we can do in this area, but it would help if the NHS had a long-term strategy for dealing with the issue, which it lacks at present. I will say more on that point in a few moments.

Under current arrangements, all companies regulated by the Gambling Commission are expected to make a voluntary contribution of 0.1% of turnover. To put that in context, in 2019-20 that figure was £10 million. Most of the funding goes to GambleAware, which is a totally independent charity. The industry has no say whatever on how that money is spent. In its five-year strategy published last year, the charity says that it expects to see that income increase to £39 million by the year ending 2024. As the hon. Member for Swansea East alluded to, the four largest gaming companies—Entain, William Hill, Flutter and Bet365—have agreed to increase their contributions to 1% of turnover. That is an additional £100 million over a four-year period to tackle the issue, with all of that funding going towards tackling and preventing the causes of problem gambling.

As I said in response to the intervention from the hon. Member for Sheffield Central (Paul Blomfield), the NHS still does not have a long-term strategy to tackle problem gambling. It was only in 2019 that the Department of Health announced it would open 15 new NHS clinics for addicts. Despite that, only five are open so far, with three more supposedly coming online later this year. Meanwhile, it is the industry and charities that have spent the last two decades trying to tackle the issue. Currently, charities use about 160 locations for face-to-face counselling services—part of an already mature network of clinics, treatment centres and outreach programmes that are making a real difference right now.

A statutory levy would risk charities’ existing funding models by taking cash out of their coffers and putting it into the NHS, which, sadly, is not yet set up to delivering those services.

[Ronnie Cowan (Inverclyde) (SNP)]

Has it crossed the hon. Member’s mind that the difficulty for the NHS in rolling out its plan for 15 clinics is the lack of guaranteed funding, which is exactly the strategy that a smart statutory levy would cover?

[Scott Benton]

The issue has been around for decades. Obviously, the gambling review is long awaited. Hopefully, that will help to address the issue, but it is unmistakable that the industry has taken voluntary steps over the years to try to tackle the problem. What we need is a consensus on the most appropriate way forward. For the reasons outlined, I do not think that a statutory levy is the answer, but I am open to hearing all Members’ views, so I am attending the debate to hear both sides of the argument.

A clumsy one-size-fits-all approach would have a disproportionate effect on land-based operators, which are only just recovering from the pandemic. In truth, it would be catastrophic on those businesses, because, like the rest of the hospitality sector, they have many fixed costs to fund, including staff, business rates, tax and licences. A tiered system would take that into account and better protect jobs.