Lotteries: Limits on Prize Values

Tracey Crouch Excerpts

Tuesday 12th December 2017 Westminster Hall

[Jim Shannon]

My hon. Friend makes a very important point in this debate today and the Minister will obviously take note of it—

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

indicated assent.

[Jim Shannon]

So we look to the Minister, as we always do, for a comprehensive response to the debate. It is always good to see her in her place and we deeply appreciate her interest in this matter.

Businesses should not reap the benefit of charitable rates and tax exemptions if the charitable project itself is not reaping the benefit of people’s charitable endeavours. For that reason, I am supportive of greater regulation to ensure that the most money possible goes to the charity. For example, when people make the decision to buy a Health lottery ticket over a national lottery ticket, it suggests that they want to help the health service, as the hon. Member for Eastbourne suggested in his intervention, and people who are ill. As much money as possible should go to health provision, as that is what people are trying to achieve.

I am not sure whether this issue is really within the remit of the Minister, but I must put something on the record. Whenever we watch TV—I only watch on very rare occasions—the Health lottery comes up. In the small print at the bottom of the screen, it says that the Health lottery is available in England, Wales and Scotland, but not in Northern Ireland. That might be because of our legislation, but I will put it on the record that many of my constituents wish to contribute to the Health lottery but cannot do so for whatever the reasons may be. So, I again look to the Minister, to give us some thoughts on how we can perhaps ensure that the good charitable giving of people in Northern Ireland can benefit the Health lottery, so that we can also contribute to good causes through that route.

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[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

It is a pleasure, as always, to serve under your chairmanship, Sir Edward.

I am grateful to my hon. Friend the Member for North West Norfolk (Sir Henry Bellingham) for calling what has been a stimulating and wide-ranging debate on an important issue, and I thank all Members who have taken part. Many of the issues that have been raised are complex, and are exactly the ones my Department has been grappling with for a while now, so it has been timely and invaluable to hear everyone’s considered views.

I will start with some specific comments. The hon. Member for Ceredigion (Ben Lake) asked whether I recognised the value of society lotteries. Of course I do. I certainly do. Like those of many colleagues, my constituency has benefited from society lottery funding, including for Kent search and rescue and the Luton Millennium Green community nature park. So naturally, like many people, I understand the value of both society lotteries and national lotteries.

I want to deal up front with the issue of the advice from the Gambling Commission, which has been raised by many colleagues. I have received the commission’s advice and have been considering it carefully. The commission will publish the advice in due course, and I hope to update Members soon. One particular piece of the advice, on transparency, was published just this afternoon. Many Members will know that the Gambling Commission recently consulted on introducing new licence codes to improve the transparency of society lotteries, and its proposals include requiring lotteries to publish the various proportions of their proceeds. I want first to deal with those issues—I will come back to the timetable later in my speech.

It is clear that the society lottery sector plays an important and growing role in supporting a diverse and wide range of good causes in the UK. We have seen sustained growth in the sector since 2008, when the per draw sales limit was doubled from £2 million to £4 million. Indeed, sales have increased by more than 100% in the last five years. Last year, a record £255 million was raised for good causes, which was an increase of more than 20% on the previous year. Not only are society lotteries raising more funds for good causes, they are giving a greater proportion of their sales back to good causes, with a sector average of just less than 44%.

Each year, more charities and good causes start their own lotteries to raise funds to support their important work. I recognise that, for charities, money raised through society lotteries has become an important source of funding, which allows their work to continue and grow. Colleagues will appreciate that I am the Minister with responsibility not only for gambling but for civil society so, whatever we do on the issue, I recognise the contribution the lotteries make to charities that I support in another part of my brief.

In 2015, I was a member of the Culture, Media and Sport Committee, the report of which many colleagues have cited today. We looked at society lotteries in some detail. The guiding principle then, as now, was that the regulatory regime which governs society lotteries should encourage the maximum return to good causes. The licensing regime should be light, protecting players without placing unnecessary burdens on operators. In some bizarre twist, I, in my role as the Minister responsible for lotteries, and the former Secretary of State for Culture, Media and Sport, the right hon. Member for Maldon (Mr Whittingdale), who had previously been the Chairman of the Committee, agreed either to accept the report’s recommendations, or to explore them with expert advice from the Gambling Commission. The issues are important and complex, and it has been prudent to take our time over them and to consider a number of options.

My hon. Friend the Member for North West Norfolk and other colleagues mentioned limits, which was a recommendation for review in the Select Committee report. However, before making any changes to the current rules, it is important that all options are looked at and consideration is given to the wider picture. We do not want any unintended consequences.

The key consideration in the reforms has been how to strike the right balance between society lotteries and the national lottery. The sectors grew in tandem for many years, and it is important that any reforms enable them both to flourish. I want to pause here to acknowledge the importance of the national lottery. This year marks its 23rd anniversary and, since 1994, more than £37 billion of national lottery funding has been raised—an average of more than £30 million each week—for more than half a million projects all over the UK. The national lottery has had an unparalleled impact on 21st century Britain, making a valuable contribution to funding our many Olympians and Paralympians, our historical buildings and monuments, and even our Oscar winners, one of whom I was fortunate enough to meet a fortnight ago, alongside some of our future stars who are benefiting from film clubs run with lottery funding. It is, of course, our communities who benefit most of all from the lottery. The majority of national lottery money goes straight to the heart of our communities. Last year, most of the grants made were for £10,000 or less—small amounts going to community-led projects that make a huge impact.

I was sorry to hear that my right hon. Friend the Member for Witham (Priti Patel) is unaware of some of the national lottery funding in her constituency. We are working with all distributors to ensure that people are made more aware of the local as well as the national good causes that the lottery supports. Just as a headline, in my right hon. Friend’s constituency the national lottery has funded the Museum of Power—somewhere we should all visit—Tollesbury sailing club and the local rifle club. I know that Braintree District Council covers more than her constituency, but it has had more than £18 million of Sport England funding. I do not know the details of all the other national lottery distributors, but I will ensure that we write to her with them.

[Priti Patel]

I know very well the distribution of national lottery funds and support in my constituency and I thank the Minister’s officials for giving her the chance to tell the House today where the money has gone. But there is a point of principle here, which is that of competition and choice in communities—also the purpose of the debate—ensuring that society lotteries are able to compete with the national lottery and that a wider pool of funds goes to a much wider range of local charities and communities.

[Tracey Crouch]

I am grateful for my right hon. Friend’s point, which—she is right—the whole debate has addressed. It is important, however, and other colleagues have made this point, that we have a strong national lottery. It has become a part of our national fabric, but that does not mean that we cannot also have strong society lotteries. The Secretary of State made that point recently.

[Sir Michael Fallon]

No one doubts the success of the national lottery. It is an enormous achievement and we should be very proud of it, but how do we know whether a quarter of a century further on it will continue to be as successful as it could be?

[Tracey Crouch]

We are constantly reviewing matters. The Gambling Commission constantly keeps the national lottery under review, and I am sure that colleagues are aware that discussions are already beginning about the next licence procedure. We have to have a healthy mix of lotteries. I recognise, as my right hon. Friend the Member for Witham pointed out, that not everyone is aware of the local good causes. There has been an issue that the national lottery money that goes to those good causes has not necessarily been promoted as well as it could be. Society lotteries have done that much better, and we want to ensure that we have a vibrant mix of national and society lotteries.

I am the Minister with responsibility for charities, so I have heard from many charities that benefit from society lottery funding, whether that is their own or a grant from such lotteries as the People’s Postcode lottery or the Health lottery, both of which support a multitude of good causes throughout the country. We have heard about some of those good causes today.

I have spent a long time looking at the evidence on the relationship between the national lottery and society lotteries. We know that the two sectors offer different and distinct propositions to players. The national lottery enables players to support a wealth of good causes in the hope of winning a life-changing prize, while society lotteries focus for the most part on affinity with a specific cause and are subject to limits on their annual and per draw sales and their maximum prize. For that reason, I do not believe there has been significant competition between the two sectors up to now, but reforms must be considered through that lens.

It has been interesting to hear the arguments regarding the prize limits on offer through various lotteries. It is no coincidence that when the national lottery draws have big rollovers, there is an increase in ticket sales—bigger prizes attract more players—but I do not think people are attracted to society lotteries in the same way. Many large society lotteries offer relatively low prizes but are still thriving, which speaks to the point that my hon. Friend the Member for North West Norfolk made. It is not always about the size of the prize; what is important is maintaining the balance and variety currently on offer.

I will briefly respond to the points made by our Northern Ireland colleagues. Although lotteries carry a lower risk of harm than commercial gambling, they are still a form of gambling, and tickets can be bought at 16. That is one reason why we are considering the evidence carefully before making a decision. Gambling policy in Northern Ireland is devolved, as was pointed out. I have listened with interest to the points that the hon. Member for Strangford and others have raised, and I encourage them to raise them with the Northern Ireland authorities. In addition, colleagues will know that I announced a consultation on social responsibility on 31 October. It will look at advertising, which was a point that the hon. Gentleman raised, and I encourage him to feed into the consultation. I continue to keep the devolved Administrations up to date on our work on this issue.

[Gavin Robinson]

The Minister will be aware that the Northern Ireland legislation on gambling and social charities has not been revised since 1994. The Department for Communities started a consultation in 2011, and we still have not got the outcome of that process. It is no surprise that there is huge divergence between the legislative framework in Northern Ireland and that in the rest of the United Kingdom. Given that we do not have devolved institutions at the moment, and regrettably might not for some time, it might be worth the Minister engaging with the Department for Communities to get an update on where that consultation is.

[Tracey Crouch]

I would be very happy to do that. The hon. Gentleman makes a good point.

The other comment I wanted to make was on the call for evidence. Responses to the call for evidence have been considered alongside the Gambling Commission advice. The process has taken time. There have been two general elections since it started, but I assure colleagues that it is very much at the forefront of my current work. We are carefully considering the evidence. While colleagues may say that there is consensus for change, which is true, I respectfully point out that there is not necessarily consensus within the sector on what the changes should be, and we are looking at that area as part of our consideration. As my hon. Friend the Member for North West Norfolk and others have pointed out, changes to the limits for sales and prizes can be made by statutory instrument, but the parliamentary process, as many know—there are some very experienced colleagues in this room—can take around nine months to conclude from when an announcement is made. We are trying to work the issues through. I hope to be able to update colleagues in more detail in the new year.

To conclude, society lotteries, both large and small, play a rich, varied and important role in supporting and championing good causes. For some, they may well be the mechanism for providing their main sources of income, and it is my intention to ensure that the sector has every opportunity to grow and thrive. I thank my hon. Friend for giving us the opportunity to set that on the record.

Charitable Fundraising Websites

Tracey Crouch Excerpts

Tuesday 28th November 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

It is a pleasure, as always, to serve under your chairmanship, Mr Hollobone. I thank my hon. Friend the Member for Cheadle (Mary Robinson) for bringing such a topical and important issue to our attention.

We should celebrate the fact that we are a generous nation. As my hon. Friend said, Charities Aid Foundation research indicates that the British public donated about £10 billion to charity in 2016, making the UK the most generous nation in Europe and one of the most generous in the world. Today is Giving Tuesday, the global day of giving that encourages people to volunteer, donate to charity and spread the word about doing good stuff. Last year, 4.5 million people in the UK gave their time or money to charity on Giving Tuesday, and for the second year running the campaign broke the world record for the most money donated online in 24 hours.

Many people need to be asked before they give, so charities have to invest some of their money in fundraising in order to raise funds to undertake their important work. According to the National Council for Voluntary Organisations, every £1 that a charity invests in fundraising raises an average of £4 in return. Fundraising, when done well, also means that charities can develop positive relationships with their supporters.

Recent years have seen the emergence and rapid growth of online fundraising platforms as a new and convenient way for people to donate to charity or other causes. Huge sums are raised for charity through online fundraising platforms. The largest, JustGiving, has helped people to raise more than £3 billion for good causes since 2001. We need only look at the incredible public generosity and use of online fundraising platforms following recent tragic events such as the Grenfell tower fire and the terrorist attacks in London and Manchester to gauge the popularity of that form of fundraising. However, fundraising must be undertaken responsibly by all if public trust is to be maintained.

Sadly, in 2015, charity fundraising came into the spotlight for all the wrong reasons, risking public trust and confidence in charity. Two years on, the charity sector has taken responsibility and embraced change. It set up a new independent and effective self-regulatory body, the Fundraising Regulator, which has worked with fundraisers and charities to strengthen and enforce the code of practice. It has implemented the Fundraising Preference Service, enabling members of the public to easily put a stop to unwanted fundraising requests. Charities and their trustees have embraced higher standards. They are monitoring and overseeing their fundraising activities much more closely, and are strengthening their data protection policies and practices.

My hon. Friend asked whether we could give the Fundraising Regulator more teeth. The regulator regulates the fundraising community by consent. Working with the sector, it has taken major steps to strengthen the regulation of fundraising and ensure that the public are protected from poor practices. Where there is deliberate abuse or unlawful activity, it is for the Fundraising Regulator to report to the relevant statutory regulators—for example, the Charity Commission, the Information Commissioner or the Financial Conduct Authority, and in appropriate cases the police—and encourage them to use their statutory powers. We think that effective self-regulation rather than Government intervention can deliver on the public’s expectations.

As my hon. Friend also mentioned, recent online fundraising has shed light on the need for improved standards of transparency and accountability for online fundraising platforms. The issues include a lack of transparency about website fees and charges, the potential for online fraudulent activity, and the need for the public to have access to good advice about online giving. We need to ensure that high standards and best practice are shared and followed across all online fundraising platforms. That is why, earlier this year, I asked the Fundraising Regulator and the Charity Commission to work with the online fundraising platforms to address public concerns and promote high standards and good practice.

The Fundraising Regulator and the Charity Commission convened a summit with 14 of the largest online fundraising platforms in September. The aim was to agree collectively on principles to increase public understanding and transparency about the different forms of online donating, in order to secure public trust and confidence. I am pleased to report a positive response from the online fundraising platforms and a number of commitments from their meeting with the regulators. They have confirmed their commitment to transparency on fees and charges and have agreed to work with the Charity Commission and Fundraising Regulator to explore how that can be improved. They have also agreed to disseminate clear and consistent public advice about the choices available for donating. They will review their resilience to fraud and help the regulators to review the code of fundraising practice with the aim of expanding the standards for online fundraising.

On fees and charges, we need to recognise that there is a range of commercial and not-for-profit organisations that operate as online fundraising platforms. In addition to the debit and credit card transaction fees that apply in all cases, there are significant costs to be covered in providing the service. That is the case for online fundraising platforms and for traditional methods. In some cases, those costs or a proportion of them are subsidised by associated businesses as part of their social responsibility programmes, reducing the proportion of fees that comes out of individual donors’ gifts. In other cases, fees are taken from the donation or any gift aid on the donation.

My hon. Friend the Member for Cheadle asked about gift aid and the fees that are taken from the total value of the donation plus gift aid. That is the case regardless of whether the platform says that the fees are taken from the body of the donation or from the gift aid that is paid on top of it. Platforms also take responsibility for processing gift aid claims on a charity’s behalf, including any associated reporting and audit requirements. As always, we continue to have discussions with those involved. It is important that in all cases any charges and fees are reasonable and transparent, so that donors can make an informed choice. I welcome the decision that some fundraising platforms took to waive or reduce their fees, or to make a donation, in relation to fundraising for disasters such as the Grenfell Tower fire and the terror attacks earlier this year.

My hon. Friend asked whether we could put pressure on the industry to reduce debit and credit transaction fees. I assure her that UK card processing fees of generally between 1% and 2% compare favourably with the payment processing fees charged in other countries, which are usually higher—significantly so in some cases. I am fairly certain that members of the industry will be watching this debate and they are welcome to discuss what they can do to help support charities’ fundraising efforts with me and my colleagues.

The Charity Commission and Fundraising Regulator will continue to work with the online fundraising platforms and will keep me updated on progress. They sent me a letter yesterday that outlined current progress, which I am happy to share with my hon. Friend. Those platforms provide an important service that is popular with the public and raises significant sums for charity. They have shown that they are willing and committed to work with the regulators and the Government to respond to public concerns and to strengthen standards and transparency. I welcome that, and I hope that other hon. Members do too.

Again, I congratulate my hon. Friend on securing this important debate, particularly on Giving Tuesday. I am willing to continue the conversation outside this Chamber.

Question put and agreed to.

Draft Charitable Incorporated Organisations (Consequential Amendments) Order 2017

Tracey Crouch Excerpts

Thursday 23rd November 2017 General Committees

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

I beg to move,

That the Committee has considered the draft Charitable Incorporated Organisations (Consequential Amendments) Order 2017.

As always, it is a pleasure to serve under your chairmanship, Mr Rosindell. The draft order is a small part of a package of secondary legislation to support the development of charitable incorporated organisations. I hope hon. Members will allow me to put it in context by explaining briefly the background to the package.

CIOs, which have been available since 2013, are the only legal structure designed just for charities. Charities often choose a corporate structure because it has legal personality and limited liability for its members and trustees. CIOs provide these benefits, but unlike charitable companies, they are subject to a single regulatory regime under the Charity Commission, rather than a regime of dual regulation by the Charity Commission and Companies House. They have proved popular—more than 12,000 have been set up so far—and some charities that originally chose a company structure now want to adopt a CIO structure, as do some community interest companies.

Our package of secondary legislation will make it easy for charitable companies and CICs to convert into CIOs if they so wish. A right of appeal to the charity tribunal already exists for charitable companies whose application to convert to a CIO has been refused by the Charity Commission; the draft order will provide an equivalent right of appeal for a conversion application from a CIC. The rest of the package consists of two other statutory instruments that will provide more detail on the conversion process and make supplementary changes. I have deposited drafts of the instruments and an impact assessment in the Library for those interested.

The package of proposals underwent full public consultation in 2016. Several improvements were made as a result of consultation feedback, which also showed overwhelming support from 95% of respondents for establishing a statutory conversion process. Commencement is planned for January 2018, but to manage demand the Charity Commission has proposed phasing the availability of the conversion process: it will start with the smallest charitable companies and will open up conversions to CICs from September 2018.

I hope hon. Members agree that the draft order is an uncontentious measure that will support small charities. I commend it to the Committee.

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[Tracey Crouch]

I am grateful to the hon. Gentleman for his constructive comments. We all accept that small charities are the backbone of civil society, undertaking hugely important work in communities across the country. We want them to be able to thrive and to have access to the legal structures. That is why we are introducing the statutory instrument.

I hear what the hon. Gentleman says about the Charity Commission’s resources. We acknowledge that it has limited resources, which is why we have agreed with it a phased approach to the implementation of the CIO conversions. In 2015, the Charity Commission received an additional £8 million investment to support its transformation programme, and to help it become a modern, effective regulator. We believe that the commission has made very good progress with that.

I assure the hon. Gentleman that the Government are considering future funding options, including bringing the Charity Commission more into line with the funding model of other regulators. Obviously, there would have to be a public consultation before any changes were made, but we acknowledge that there are issues surrounding the funding, which we are trying to address. The Charity Commission has been heavily involved in not only how the statutory instrument was drafted, but how it will be implemented. That is why we have agreed a phased response. I assure the hon. Gentleman that we will respond shortly to the Lords report.

Question put and agreed to.

Oral Answers to Questions

Tracey Crouch Excerpts

Thursday 16th November 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

My officials and I have regular conversations with the Home Office on matters relating to football and other sporting events, including counter-terrorism, security and policing matters.

[Louise Haigh]

I am very grateful for the Minister’s response. The cost to the Met of policing premier league football last year was almost £7 million, but the clubs contributed only £360,000. Given that they draw in more than £240 million every match day, is it not high time that premier league clubs were paying their full share to overstretched police forces?

[Tracey Crouch]

Football clubs do make a significant contribution to policing costs for home matches, and the Premier League and the clubs themselves contributed more than £2.4 billion to the public finances. We have to recognise that there are parameters as to policing costs and where these can be recovered from. I know that recent High Court cases have determined that, based on existing legislation, the police are not entitled to charge for these special police services where they are deployed on public land. That court decision has implications for what the police can charge, but we work with both the Premier League and the clubs on a host of policing matters, and I am sure that will continue.

[Philip Davies (Shipley) (Con)]

The hon. Member for Sheffield, Heeley (Louise Haigh) is absolutely right on this issue, about which I have had meetings with the Home Secretary. I urge the Minister to go with the Home Secretary to meet the Premier League and the English Football League and ask them to make a voluntary contribution from the massive amounts of money they get from TV rights, before they redistribute it to the clubs. If they refuse to do so, the Government should legislate to make sure that police forces get a realistic amount for the cost of policing matches; otherwise, the money is taken away from neighbourhood policing in all our constituencies.

[Tracey Crouch]

As I said, the Premier League and the clubs contribute more than £2.4 billion to the public finances. We are aware of the continued increase in the cost of policing football matches and other sporting events, and we have ongoing discussions about that with all those involved.

[David Hanson (Delyn) (Lab)]

9. What steps her Department is taking to tackle cyber-attacks.

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[Dr Rosena Allin-Khan (Tooting) (Lab)]

The Minister will be aware that the Football Association made its final settlement payment to Eniola Aluko recently after initially withholding it because she spoke out about the abuse she had suffered. It is in the public interest to know how many people are being paid to stay silent. Does the Minister know how many settlement payments of a similar nature have been made to individuals by the FA or professional clubs after allegations of abuse or discrimination?

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

I am not aware of the answer to that question. I am sure that the FA is watching this exchange with some interest and that it will be in touch with the hon. Lady.

[Mr Speaker]

Mr Robert Halfon—not here.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

T2. At the same time as the UK Government have been slashing Scotland’s budget, funding for the national lottery fell by 14% in the past financial year, leaving Creative Scotland having to consider 119 closures. Will the Minister implement a recovery plan to offset those further cuts in funding?

[Tracey Crouch]

It has been well reported that there has been a decline in the receipts of the national lottery, and it is something that we are looking at. However, we still expect returns to good causes of the national lottery to be in the region of £1.6 billion, much of which will be distributed across the nation, including the constituency of the hon. Gentleman.

[Rehman Chishti (Gillingham and Rainham) (Con)]

Following the statement by the Prime Minister on 17 June, the Secretary of State for Digital, Culture, Media and Sport gave £1.5 million to Mind to support our emergency services. That was much appreciated. Will she look at increasing that funding going forward?

[Mary Glindon (North Tyneside) (Lab)]

T3. With more than 430,000 people having a serious gambling addiction and a further 2 million people possibly developing one, can the Minister say exactly what the Government are doing to tackle this serious problem?

[Tracey Crouch]

Mr Speaker, you will recall that on 31 October I published the 12-week consultation into gambling. That consultation will finish in January. On the day, we had an urgent question in which many of these issues were raised. None the less, the Government take the issue very seriously, and we look forward to getting back all the responses from the public and other interested organisations to help shape our policies in the future.

[Amanda Milling (Cannock Chase) (Con)]

Society lotteries provide invaluable funding for charities and local causes, but they could provide a lot more if the jackpot prize was increased. Will my right hon. Friend outline what plans there are to reform the society lottery sector and the timetable for doing so?

[Mike Kane (Wythenshawe and Sale East) (Lab)]

T4. Today’s Pro Bono Economics report shows that full-time volunteering would add up to £119 million per annum to the UK’s economy. What plans does the Minister have to respond to the recommendations of the youth full-time social action review?

[Tracey Crouch]

The Government established an independent review of full-time social action by young people, which is expected by the end of the year.

[Steve Double (St Austell and Newquay) (Con)]

The biggest concern of the tourism and hospitality sector is access to the labour force once we leave the EU. Will the Minister confirm that he has got this message, and will he update the House on what representations he is making to the Secretary of State for Exiting the European Union on the matter?

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[Mims Davies (Eastleigh) (Con)]

I am passionate about getting more women into sport, especially girls in the Eastleigh constituency and across the UK. This Government have done great work with the “This Girl Can” campaign. We must, though, ensure that everyone taking part in sport is properly protected. What is the Department doing to ensure appropriate safeguarding for all children participating in sport?

[Tracey Crouch]

Mr Speaker, I hope you will forgive me, but it is actually a year ago today that the former Crewe Alexandra player Andy Woodward reported historical allegations. He was incredibly brave to do so. As a consequence of his courage, he has ensured that the Government and other parts of the sporting sector have taken the issue incredibly seriously. I am pleased to announce that I have secured ministerial agreement with the Ministry of Justice and the Home Office to change laws on the position of trust to include sports coaches.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T8. Fixed odds betting terminals generate social harm of a scale and nature that demands an immediate, bold and radical response. I know that the Government are consulting on the question of a maximum stake, but does the Minister understand that unless they accept the minimum stake at the bottom end of those being consulted on, this problem will simply not go away?

[Tracey Crouch]

It is a live consultation, and I encourage the right hon. Gentleman to submit his views to it.

[Rebecca Pow (Taunton Deane) (Con)]

The Natural History Museum is embarking on the monumental task of digitising 800 million items, including a collection of dung beetles and flea beetles. These items could hold the keys to our future biodiversity, climate change and pollution problems, so they are very important. Does the Minister agree that this is the kind of project the Government should be supporting in conjunction with our global partners?

Civil Society Strategy

Tracey Crouch Excerpts

Thursday 16th November 2017 Written Statements

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

I wish to inform the House today of the Government’s intention to develop a civil society strategy.

Civil society plays a vital role in the health and wellbeing of individuals and communities across our country, and in helping to address some burning injustices.

This strategy will provide an opportunity to explore ways to build new partnerships within and between sectors and communities, so that we can better mobilise resources and expertise and find practical new solutions to the problems we face. It will reaffirm the value that Government places on civil society. It will explore what more Government can do to support its work.

Civil society in England is broad. It encompasses the work of individuals, charities, youth organisations and communities. Civil society is increasingly diverse, with growing numbers of social enterprises, mission-led businesses and public service mutuals, as well as many more private businesses and investors that want to make a meaningful contribution.

I would like the strategy to help shape the future direction for our work with and for civil society, and encompass all who have a role to play in building a stronger and fairer society.

It will be developed through dialogue and debate with people, groups, and organisations across government, businesses and wider civil society. It will build on engagements to date, including work with young people and youth organisations, as well as work to grow social impact investing, among others.

The Office for Civil Society, in the Department for Digital Culture Media and Sport, will lead this work, with input from the Department for Communities and Local Government and other Departments. A listening exercise will be launched in the new year and findings reported later in the year.

[HCWS252]

Music: Contribution to the UK Economy

Tracey Crouch Excerpts

Friday 3rd November 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

I am delighted to respond to this debate, and I am grateful to the hon. Member for St Helens North (Conor McGinn) for securing it. The Minister for Digital, who has responsibility for the music industry, is disappointed that he cannot be here to respond in person. Given the hon. Gentleman’s comments on the music scene in his constituency, I am sure the Minister for Digital will be delighted to visit.

The hon. Gentleman forgot to mention one of the greatest bands ever to come out of Manchester: the Stone Roses. I also hope the hon. Member for Cardiff West (Kevin Brennan) was listening to the intervention of the hon. Member for Bury North (James Frith). It is about time that MP4 became MP5.

I echo the thanks of the hon. Member for St Helens North to UK Music, its chair Andy Heath, its current and former CEOs, Michael Dugher, Jo Dipple and Feargal Sharkey, and all its member organisations for their sterling work over the past 10 years. The Government have consistently championed the British music industry and the incredible talent that makes the sector such a great success story for the UK.

As the hon. Gentleman said, UK Music’s excellent “Measuring Music” report shows that in 2016 music contributed more than £4 billion to the UK economy, up 6% on the previous 12 months. The report also highlights that the number of jobs in music grew more quickly than across the rest of the jobs market to more than 140,000, and that exports were up 13% to £2.5 billion across the whole sector. As the House has already heard, UK Music’s equally excellent report “Wish You Were Here”—incidentally, the title of one of the albums in my all-time top five—demonstrates that music tourism is also enjoying a massive boom, with the total number of music tourists from the UK and abroad increasing by 20% in 2016 to 12.5 million, generating a £4 billion total spend.

The contribution of the music industry is not simply economic; it also plays a vital role in the UK’s cultural landscape. Music is one of the things that make our country great, and it provides many people’s first introduction to all things British. Our artists are providing billions of people with the daily soundtrack to their life, and of course the talent does not end with the singers and musicians. We cannot overlook the outstanding producers, sound and lighting engineers, songwriters, composers and arrangers, promoters, stage managers, roadies and many others who are all part of the UK’s vibrant music ecosystem.

What we need to do as a Government is continue to create and support an environment in which our music industry is able to thrive. Over the past seven years, the Government have shown their commitment to the industry in a number of ways. Between 2012 and 2016, we have invested more than £460 million in a wide range of music and cultural education programmes. Further to this, we have committed to investing £75 million a year in music education hubs between 2016 and 2020. Orchestras and large musical groups are eligible to benefit from the orchestra tax relief, which was introduced in April 2016. The music export growth scheme is making almost £3 million of grant funding available to help support the launch of UK artists to international markets. That was developed in partnership with the British Phonographic Industry and will be funded by the Department for International Trade, between 2016 and 2020. BRIT award winners Catfish and the Bottlemen, MOBO-winning singer/saxophonist YolanDa Brown and Mercury prize winners Young Fathers are just some of the those to benefit.

The Live Music Act 2012 has made it much easier for promoters to organise live music events, and we made changes to the permitted development rights, making it easier for well-established music and cultural venues to operate. The rehearsal room scheme, originally set up by my Department and UK Music, and now overseen by the latter, created 14 music rehearsal spaces in areas of England experiencing multiple deprivation. Funding of £440,000 provided instruments and equipment, and contributed to the cost of necessary works, such as sound proofing.

The Government have taken a number of steps to bolster the enforcement of copyright including: increasing the maximum custodial sentence for criminal online copyright infringement offences; providing £3.6 million to the educational aspects of the Creative Content UK programme; and brokering a voluntary code of conduct between rights holders and search engines to reduce the number of infringing websites in search results.

Grassroots music venues, supported by their grassroots-equivalent recording studios and rehearsal rooms, are where so many of our world-class musicians take their first steps on the road to success. The Government believe that this vital and vibrant part of the music ecosystem must be allowed to prosper. We have already reformed entertainment licensing and made changes to planning requirements, making it easier for small venues to operate. We are currently exploring a range of issues with industry and government stakeholders, including: working more closely across government to better support the sector; the “agent of change” principle; the impact of business rate rises on grassroots music; the availability of suitable space; and Form 696, which I will come on to deal with in a moment.

[Kevin Brennan (Cardiff West) (Lab)]

The Minister mentioned the Live Music Act. As she knows, that started as a private Member’s Bill. My hon. Friend the Member for St Helens North (Conor McGinn) mentioned the private Member’s Bill of my right hon. Friend the Member for Warley (John Spellar). If the Government are considering any kind of change, will they consider taking up his Bill?

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I did not jump up immediately to interrupt the hon. Gentleman, but it is not in order for the Opposition spokesman sitting at the Dispatch Box to intervene or take part in an Adjournment debate such as this. However, this is a good-natured debate and he is not causing trouble, so on this occasion I am not going to prevent the Minister from hearing what he said. But, for the record, it is not in order for him to take part in the debate.

[Tracey Crouch]

I would not wish to be out of order by responding, so I will ensure that my ministerial colleague reads the Hansard record of this debate and responds in writing to the hon. Gentleman.

[Jo Stevens]

Will the Government support the private Member’s Bill of my right hon. Friend the Member for Warley (John Spellar)?

[Tracey Crouch]

I will ensure that the Minister with responsibility for the music industry will respond to the hon. Lady as well as to the Opposition spokesman.

The Government’s response to the recent House of Lords inquiry into the Licensing Act 2003 will be published shortly. We will continue to work across government, and with industry and local authorities, to support small venues.

The hon. Member for St Helens North understandably raised the issue of Brexit, and I wish to reassure him that my Department has held a series of roundtable meetings to ensure that the needs and views of all the creative industries, including music, are heard and understood. The DCMS is continuing to work closely with stakeholders and other Departments on the possible impacts and opportunities presented by Brexit.

Our visa system helps to shape perceptions of the UK around the world. We strive constantly to improve our visa service to ensure that it is as simple, streamlined and efficient as possible so that we can welcome established and new artists to the UK. Visa rules for artists performing in the EU will not change for quite some time, but they are being considered with other activity, and we welcome the music industry’s views on visas with respect to movement within Europe.

I am aware of the visa issues for artists travelling to the USA, and I am grateful for the constructive engagement of the industry with the UK and US Governments. I share the desire to reduce this burden on the British music industry, especially for emerging talent, and the DCMS continues to work with the sector, Foreign Office colleagues and US embassy counterparts.

I am a vinyl loyalist, but everyone in the House will recognise that over the past 10 years the recorded music industry has gone through a major transformation, with digital downloads, online platforms and the more recent explosion of streaming services all shifting the way music is consumed. The DCMS is working closely with the Department for Business, Energy and Industrial Strategy and the Intellectual Property Office to ensure that the music industry’s concerns are considered in the negotiation of the copyright package.

Like all businesses, online platforms must act in a socially responsible manner and co-operate with law enforcement authorities in a reasonable and timely way to remove illegal material. We have been working successfully with the industry to achieve this on a voluntary basis. We believe that internet companies need to take more responsibility for content on their platforms. We need to make sure that we get the right balance to ensure that we have a vibrant internet while protecting users from illegal and/or harmful content. We are currently working on proposals for a digital charter to set out a framework for how businesses, individuals and wider society should act online. The framework will address some of the issues faced by the music industry.

Many Members will know that my right hon. Friend the Minister for Digital has expressed concern about the use of form 696 and its potential negative impact on London’s grassroots music scene and its venues. Related to that is the worry that the form may be stifling young artists and reducing the diversity of London’s world-renowned musical offering, and that it could also push the organisers and promoters of genre-specific music events to take them outside London. We are pleased that the Metropolitan Police Service is reviewing how it works with the music industry, and that as part of that review the London Night Czar recently dedicated a London Music Board session to form 696.

The UK music sector is a tremendous ambassador for the wealth of creativity that exists on these islands. Wherever we look, we see great British musical and creative talent. With household names known around the world—from Glastonbury and Glyndebourne, Elgar and Elbow, Pet Shop Boys and Paloma Faith, to Abbey Road and AIR Studios, Wembley and Womanby Street—the UK is a world leader in music. Those names are a big part of why the UK is currently ranked second in the world for soft power and why people from around the world want to come here. The Government are committed to continuing to support the UK music industry at home and abroad. We want our music industry to continue to be the envy of the world, promoting and showcasing the very best of our unique brand of creativity.

Question put and agreed to.

Gaming Machines and Social Responsibility

Tracey Crouch Excerpts

Tuesday 31st October 2017 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 gaming machines and social responsibility.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

I am pleased to inform the House that this morning I published a consultation on proposals for changes to gaming machines and social responsibility measures across the gambling industry. The consultation will run for 12 weeks, during which the general public, industry and all other interested parties will be able to voice their views on the questions raised. I appreciate that some might not understand why we have to run a consultation, but this is the right process by which to proceed if we are to address this issue thoroughly and properly.

As hon. Members know, the Government announced a review of gaming machines and social responsibility measures in October 2016. I am grateful to all those who responded, including individual former addicts, faith groups, local authorities and the bookmakers. The objective of the review was to ensure we have the right balance between a sector that can grow and contribute to the economy and one that is socially responsible and doing all it should to protect consumers and communities.

Although our consultation sets out a package of measures to protect vulnerable people from harm, the main area of interest has been the stake for B2 gaming machines, known as fixed odds betting terminals. We believe that the current regulation of FOBTs is inappropriate to achieve our stated objective of protecting consumers and wider communities. We are therefore consulting on regulatory changes to the maximum stake, looking at options between £50 and £2, to reduce the potential for large losses and therefore the harmful impact on the player, their families, and the wider community.

We are aware that the factors that influence the extent of harm to the player are wider than one product or a limited set of parameters such as stakes and prizes, and include factors around the player, the environment and the product. We are therefore also consulting on corresponding social responsibility measures, on player protections in the online sector and on a package of measures on gambling advertising. Within this package, we want the industry, the regulator and charities to continue to drive the social responsibility agenda, to ensure that all is being done to protect players and that those in trouble can access the treatment and support they need. The consultation will close on 23 January 2018, following which the Government will consider their final proposals and make an announcement in due course.

[Tom Watson]

Thank you for granting this urgent question, Mr Speaker.

First, I praise the Minister for the manner in which she has conducted this review. She has kept me and other Members of the House informed throughout the entire process and has shown exemplary attention to detail. It is a shame, therefore, that she does not have a completely free hand in this policy, because we think the outcome could have been very different.

The Government’s response, after a year-long process of delay after delay, and hundreds of submissions from industry, local government, charities, campaigners and Church groups, among others, is deeply disappointing. Instead of taking firm and reasonable action to counter the well known problems with FOBTs, the Government have simply kicked the process further into the long grass and announced another consultation extending beyond the Budget.

Look at the public policy challenge the House faces: 430,000 people are addicted to gambling—up a third in three years—and a further 2 million problem gamblers are at risk of developing an addiction. Some £1.8 billion is lost on FOBTs each year—an increase of 79% over the past eight years. The gambling industry’s yield—the amount it wins in bets—has increased to £13.8 billion, up from £8.3 billion in 2009, yet it paid only £10 million for education and treatment services this year, through a voluntary levy. Worst of all, there are 450,000 children who gamble at least once a week. This situation requires action now.

There is an old maxim that the bookies always win, and they have won again today. Their shares are up and their lobbyists were grinning from ear to ear in their TV interviews this morning. We have consistently said to the Government that our gambling laws are no longer fit for purpose. There has been an explosion of online and digital-platform gambling that the Gambling Act 2005 could not have anticipated. We have offered to work with the Government on a cross-party basis to make our laws fit for the digital age. The report published today could have been a significant starting point for the process, because even by the most conservative estimates, the associated harms and costs of gambling addiction are believed to total more than £1 billion a year—and I bet the true figure is far higher. The impact is felt not only through the losses that gamblers accrue but through NHS and treatment costs, in our communities as families struggle and break down, and in our police forces, which deal with the resultant crime.

What discussions has the Minister had with the Home Office on how to measure gambling-related crime? Does she know how many people have received counselling or treatment for gambling addiction in the past 12 months, since her review has taken place? Does she know how much treatment for gambling addiction costs the NHS each year? She has said from the Dispatch Box on several occasions that the gambling industry has not done enough to fund research, education and treatment of gambling and gambling-related harm, but she has again failed to bring the industry to heel. She could have introduced a compulsory levy, and we would have supported her on that. This is a missed opportunity to settle the issue of FOBTs once and for all. Quite frankly, we expected more. The Government had a strong hand to play, but this is a busted flush.

[Tracey Crouch]

I thank the hon. Gentleman for the kind words at the start of his speech. I am pleased to see his conversion on this issue. He was of course a Minister in the Government who passed the legislation that liberalised gambling and caused the harm that many people have suffered as a consequence of FOBTs. It is this Government who are taking action.

I appreciate the hon. Gentleman’s concerns about the fact that we have announced a consultation, but the fact is that in 2005 the Labour Government rushed through the Gambling Act without paying proper attention to the issues with these machines, which then led to their proliferation. FOBTs did not exist in 1997, when the Labour party came to power. It is this Government who have recognised the harm that has been caused and who are taking action. There will be a consultation; it is due process, and I expect people to contribute to that process.

[Mr John Whittingdale (Maldon) (Con)]

I welcome the announcement of the consultation, particularly as there is now information about the effect of category B2 machines that did not exist when the Culture, Media and Sport Committee looked into the matter around five years ago. Will the Minister confirm that the Government’s position remains that any future decisions will be evidence-based?

[Tracey Crouch]

I can confirm that to be the case. The call for evidence brought in many people’s views and made the need to take action very clear. The consultation sets out four options for the reduction in stakes, but the call for evidence makes it certain that the status quo will not be maintained.

[Brendan O'Hara (Argyll and Bute) (SNP)]

I fear that the Government have missed yet another opportunity to tackle this problem. By announcing yet another consultation, they are attempting to kick this matter further into the long grass. The move to cut the maximum stake, while welcome, does not go far enough. In Scotland, £4 billion is spent every year on 2,000 gaming machines, and this is at a time when more people are being identified as problem or at-risk gamblers. Action is needed now. If this Parliament is unwilling to act, the Scottish Parliament is. Will the Minister start today the process of devolving all gambling powers to the Scottish Parliament?

[Tracey Crouch]

We have already devolved a number of powers to the Scottish Parliament that it has yet to take up.

[Maria Caulfield (Lewes) (Con)]

I congratulate the Minister on her announcement today. Does she not find the hypocrisy of the Opposition astonishing, given that it was the Labour Government who doubled the number of fixed odds betting terminals in shops and tried to withdraw the powers of local councils to stop betting shops being placed on high streets? Is their attitude not extraordinary at this stage?

[Tracey Crouch]

I will be perfectly honest: I find their attitude disappointing. We have worked on this issue on a cross-party basis for a number of years. I have poured heart and soul into this consultation and feel that we have definitely taken the matter much further forward than ever before. It is this Government who are taking action on an aspect of gambling that brings great concern into our communities and affects individuals, families and society as a whole. It is this Government who are dealing with it.

[Conor McGinn (St Helens North) (Lab)]

I refer Members to my entry in the Register of Members’ Financial Interests and to the fact that I am co-chair of the all-party group on racing and bloodstock industries.

The Minister will know that horse-racing relies heavily on the levy from bookmakers and on advertising, sponsorship and media rights. Will she assure me that she will work with the industry—with horse-racing—in the coming weeks to ensure that, while protecting those who are vulnerable to gambling addiction, which we all want to do, we protect jobs, investment and economic benefits that my constituency receives through being home to the best racecourse in the country at Haydock Park?

[Tracey Crouch]

Horse-racing is an incredibly important sector within my portfolio, and my right hon. Friend the Minister for Digital would not let me forget that, as he has one of the largest racecourses in his constituency. We do not envisage these changes having a particularly negative impact on horse-racing—in fact, they may well encourage bookmakers and others to focus more on horse-racing.

[Several hon. Members rose—]

[Philip Davies (Shipley) (Con)]

May I urge the Minister not to listen to the shadow Secretary of State? He and I were both on the Select Committee that looked into these matters. and he was so interested in problem gambling that he did not even turn up to one evidence session. Perhaps if he had, he would be a bit more knowledgeable on the subject.

Over the summer, the Gambling Commission published its report on problem gambling. It found that the highest levels of problem gambling were in spread betting, followed by betting through a betting exchange, then playing poker in pubs or clubs, then betting online on events other than sports or horse or greyhound-racing, and only then by playing gaming machines in bookmakers. Those much higher levels of problem gambling all come with unlimited stakes and unlimited potential winnings. If the Government are so obsessed with evidence, why are they focusing so much on betting machines in bookmakers? Or are they just playing to the gallery, which most of us know this is really all about?

[Tracey Crouch]

May I gently urge my hon. Friend to read the consultation document we published today? If he does, he will discover that this is not just about problem gamblers, but about those who may be at risk from harmful gambling. One thing we know is that there are many more people out there who are at risk of harmful gambling, of which FOBTs are just one aspect. The consultation delivers a package of measures on all areas of gambling and the risks that they may cause.

[Graham P. Jones (Hyndburn) (Lab)]

My constituency has 54 FOBTs. Some £2.5 million was lost on these machines last year and £15 million has been lost since 2008 in a deprived constituency. The recent report by the Institute for Public Policy Research and GambleAware said that it is costing the UK £1.2 billion to look after the victims of gambling—people who are addicted and have various problems. What assessment has the Minister done of the cost to the UK Government of looking after people who will continue to be affected if the £50 option is chosen, because it is still such a high stake?

[Tracey Crouch]

I congratulate the hon. Gentleman on his work on the subject. He is a long-time campaigner on the issues of FOBTs and has done an excellent job standing up for his constituents who have become the victims of gambling addiction. Four options have been set out in the consultation paper—£50, £30, £20 and £2—and separate impact assessments have been published alongside.

[Fiona Bruce (Congleton) (Con)]

I am pleased to hear the Minister speak about protecting the vulnerable from harm. The Centre for Social Justice report, “Lowering the Stake on Fixed Odds Betting Terminals” says that

“the high stakes of FOBTs have compounded the social issues perpetuated by gambling.”

As the Minister says, the harm of FOBTs goes way beyond addicted gamblers to affect many families and children disastrously. I implore the Minister to consider that a reduction of £50 will not resolve the issue for those people.

[Tracey Crouch]

It is clear that we have listened to all the public concerns about the risks of high-stake gambling, which is why we have published this overall package of measures. I encourage my hon. Friend and others to make their views clear on the individual stake options as part of the consultation.

[Christine Jardine (Edinburgh West) (LD)]

Given the danger that people who want to make large bets will be pushed online to the less regulated area, would the Government consider extending the consultation to address stakes in online equivalents such as blackjack, in which thousands of pounds can be bet on one hand and lost?

[Tracey Crouch]

The consultation addresses online gambling, in which there has been huge growth. We have announced as part of today’s package that we expect to see stricter protections as part of the licensing conditions for online gambling operators. I hope that the hon. Lady will look at those measures and respond accordingly.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I am the other co-chair of the all-party group on racing and bloodstock industries. I also have the honour of representing the constituency that is home to Cheltenham racecourse, which I would say is the best racecourse in the world.

I am a little bit concerned by the Minister’s suggestion that bookmakers might be able to transfer bets to racing from FOBTs. I do not think there is any evidence that that would happen, although I very much hope that it would. I stress the importance to horse-racing of the support of bookmakers. That is not unique to the United Kingdom; it is the same across the world. When the Minister takes her decision, will she consult fully with all strands of horse-racing, so that we do not end up throwing the baby out with the bathwater?

--- Later in debate ---

[Tracey Crouch]

There is no intention to damage the horse-racing sector with this consultation. I encourage my hon. Friend and other hon. Members to look at the letter that was sent to me by Paddy Power’s chief executive, who recognises that the issue has become toxic for the industry and may well be driving punters away from the shops. Members of the bookmaking industry are keen to get involved with this, and there is certainly no intention to damage horse-racing or any other sporting industry.

[Ian Paisley (North Antrim) (DUP)]

I thank the Minister for the consultation paper, which we will study with interest. Before she makes her final decision, will she carry out an impact assessment of whether these measures will result in job losses in betting shops across the United Kingdom? Also, there are five-and-a-half lines on television broadcasting in this document, yet everyone knows that gambling adverts are doing more damage than FOBTs.

[Tracey Crouch]

We will assess all the evidence that we receive as part of the consultation. The impact assessment has also been published today alongside the consultation document. Advertising regulations are in place. We have announced today, as part of the package of measures, that there will be a responsible gambling campaign funded by the broadcasting industry of a scale that is larger than any Government public awareness campaign. We expect that to be prevalent within the parameters in which gambling adverts are allowed. It is a fact that people can see gambling adverts during live sporting events, and we are addressing some issues around their tone and content. I think it is fair to say that, although such adverts might be annoying, the content is not beyond what is allowed by regulation. We will keep a close eye on that situation.

[Mr Bob Seely (Isle of Wight) (Con)]

Is the Minister aware that many people in the Isle of Wight would like to see the limit of FOBTs dropped as soon as possible, preferably to £2. There are 55 such machines in my constituency, and they have taken £19 million out of our economy since 2008. That money would frankly be best spent elsewhere. Will she comment on the gambling industry’s irresponsible and deeply selfish attitude? It has become addicted to the profits that these machines generate. That addiction to those profits comes from getting people—generally at the poorer end of the spectrum—addicted to this style of gambling. It is deeply troubling.

[Tracey Crouch]

I hope that my hon. Friend and many other people across the Isle of Wight who have been affected by these machines take a look at the consultation paper and reply. This is an opportunity for the gambling industry to take a long hard look at itself and reassess what it offers the British punter. We shall see what happens over the next 12 weeks.

[Ronnie Cowan (Inverclyde) (SNP)]

I recently visited the National Problem Gambling Clinic, and commend the work being done by Dr Henrietta Bowden-Jones in supporting people affected by gambling-related harm. However, this is the only such clinic in the entire United Kingdom. Does the Minister agree that more help needs to be provided for individuals and families who have been affected by problem gambling? One way of doing this would be to put a statutory levy on bookmakers, so that they contribute more than the £8 million that they currently contribute on the back of the hundreds of millions of pounds of profit that they make annually.

[Tracey Crouch]

I agree. We certainly mention some issues around the levy in the consultation document. At the moment, bookmakers have to contribute 0.1% of their profits. If they did that, it would amount to somewhere in the region of £13 million to £14 million, but that is currently not happening across the board. We have made it very clear in the consultation that we want that to happen. If it does not happen, we will certainly consider the introduction of a mandatory levy.

[Alex Burghart (Brentwood and Ongar) (Con)]

I strongly welcome the consultation. Many of us remember the disastrous legislation on FOBTs under the last Labour Government, and their intention to bring forward a generation of super-casinos. I urge the Minister to look at online gambling where people can gamble repeatedly through the night on online casinos while drinking.

[Tracey Crouch]

We are looking at the issue of online gambling. As it stands, about 10% of the adult population participate in online gambling and betting, and 5.1% of those players are problem gamblers. That compares to 11.5% of FOBT users who are problem gamblers. We are addressing both issues, but, although we have seen a growth in online gambling, we know where the current issues lie.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

On Thursday, I visited a residential gambling rehabilitation centre in my constituency, which provides a 14-week programme for about half a dozen residents at any one time. It is run by the Gordon Moody Association, and demand for the service outstrips what it can offer. Will the Minister commend the vital work of the Gordon Moody Association and commit to a compulsory levy on the industry to fund such vital work?

[Tracey Crouch]

I am happy to commend the work being done in the hon. Lady’s constituency. There is a shortage of places dealing specifically with gambling addiction. We would like to see the situation vastly improved, and we are talking to colleagues in the Department of Health to ensure that that happens. I hope the hon. Lady heard my answer to the previous question, which was that the industry should contribute more on a voluntary basis, but if it does not, we will consider a mandatory levy.

[Sir Peter Bottomley (Worthing West) (Con)]

I commend to the Minister the “Victoria Derbyshire” programme this morning. At 9.15 am the hon. Member for Swansea East (Carolyn Harris) spoke, and at 10.15 am a man called Terry spoke about how, if the stakes were £2, he would not have lost everything. We ought to bring in Terry’s law. My prediction is that, on a free vote, £2 would get through and that, on a whipped vote, it would also get through.

[Tracey Crouch]

I am grateful to my hon. Friend for that television and whipping advice. We are looking at all these issues, and the different options are there. The £2 figure is in the consultation paper, and that is something there has been great public demand for. We are going through a consultation process; everybody will be able to submit their views to it, and we will make a decision during the next year.

[Carolyn Harris (Swansea East) (Lab)]

May I first thank the Minister for the helpful way she has worked with me as chair of the all-party group on FOBTs to get us to the point we are at now? She will be well aware of my concerns about the addiction to FOBTs and the consequences of that addiction. There is insufficient treatment for addicts and no residential treatment at all for women. There is the potential for criminal activity to feed the habit and for vandalism as a result of frustration about the habit, and there is a worrying opportunity for money laundering. Addicts also often put pressure on the benefits system because of their chaotic lives, and mental health issues often prevent them from working. Before the final decision is made, I urge the Minister to consider all those social consequences of this dreadful addiction to these dreadful machines.

[Tracey Crouch]

May I first congratulate the hon. Lady on the work that she and many others on both sides of the House and in both Houses have done on this issue in the all-party group? Many of the issues she has raised are precisely why the Government are taking action and why we have published the consultation today. It is important to emphasise that we recognise that this is about not just the gambler—whether they are a problem gambler or a harmful gambler—but the associated consequences for their family and friends and for the communities in which they live.

[Bob Stewart (Beckenham) (Con)]

Does my hon. Friend agree that bookmakers provide considerable employment, contribute to the economy and, for the vast majority of gamblers, provide a bit of enjoyment and light fun? We should not forget that.

[Tracey Crouch]

That is why we are taking the balanced approach of making sure that we continue to support a socially responsible sector while protecting the most vulnerable in society.

[Nick Smith (Blaenau Gwent) (Lab)]

In just one borough—Blaenau Gwent—nearly £1.5 million was lost to FOBTs last year, so I ask the Minister not to bow to industry pressure and to cap the top stake at £2.

[Tracey Crouch]

I am grateful to the hon. Gentleman for his views. I encourage him to make those points, particularly as they relate to his constituency, as part of the consultation. We are looking at a whole variety of options when it comes to the stake, and I urge him and others to make their views known as part of the call for responses in the next 12 weeks.

[Wendy Morton (Aldridge-Brownhills) (Con)]

It is so important that we have the right, strong protections in place around online gambling, particularly where young people and some of the most vulnerable people are concerned, so I welcome the Minister’s announcement today. Will she provide further details to the House about the responsible gambling advertising campaign her Department has announced today?

--- Later in debate ---

[Tracey Crouch]

GambleAware, the Advertising Association, broadcasters and the gambling industry will come together to draw up a multimillion-pound, two-year responsible advertising campaign. It will have a budget of between £5 million and £7 million in each year, and it will include television ads, including around live sport, as well as ads for radio, cinema and print online.

[Mr David Lammy (Tottenham) (Lab)]

I consider the Minister a friend, not least because we support the same football team—Tottenham Hotspur, the best in the premiership—but she will know that I have campaigned for over seven years on this issue, and in my view it was a complete mistake to introduce these machines to the high street. This is not just about a reduction in the stake, so will she say a little more about reducing the proliferation of betting shops across our country and our high streets?

[Tracey Crouch]

Mr Speaker, I am not sure that the reference to my supporting Tottenham Hotspur endears me to you, but I thank the right hon. Gentleman for his comments. We looked at the proliferation of bookmakers in our high streets as part of our call for evidence. We concluded that local authorities do have the powers to address the issue. However, taking the whole package of measures, I am sure there will be a reduction if the stakes are reduced significantly in the future.

[Mr Speaker]

I call Mr Peter Bone.

[Mr Peter Bone (Wellingborough) (Con)]

Thank you, Mr Speaker, for calling another Spurs fan immediately. Your neutrality in the Chair, of course, would not prevent you from intervening. This excellent Minister is bringing forward a really sensible consultation. What worries me is that if we make the wrong decision, we may make the situation worse by driving problem gamblers out of betting shops, which are a controlled environment, and towards online gambling. The consultation is right, but we should look at that issue as part of it.

[Tracey Crouch]

Online gambling has, in many respects, a better opportunity to protect players, because sites have all the details of players’ practices. Obviously, as part of the consultation, we are going to look at how we can protect online gamblers, but we definitely have more opportunity to do that than we do to protect somebody going in and out of different bookmakers.

[Stephen Timms (East Ham) (Lab)]

The Minister will know that the scale of harm being inflicted by these appalling machines in my area prompted Newham Council to lead calls for a £2 maximum stake. We have heard fears today that, if that happens, the number of betting shops could be almost halved around the country. May I reassure the Minister that if the number of betting shops in East Ham’s high street was halved, there would still be too many? Will she please get on and introduce the £2 maximum stake as quickly as possible?

[Tracey Crouch]

I thank the right hon. Gentleman for his question, because it gives me an opportunity to thank Newham Council for the work it has done. I have met the leader of the council as part of the call for evidence and as part of his representation of other local authorities, including my own, which has signed up to the issues around stakes. This is all part of the consultation process, and I encourage Newham and all the other local authorities to let their views be known.

[Andrew Selous (South West Bedfordshire) (Con)]

Will the consultation look at the costs that fixed odds betting terminals put on the police, mental health services and the families of vulnerable gamblers—especially the children?

[Tracey Crouch]

That is exactly what we are doing. As part of the call for evidence, a lot of those issues came through. My hon. Friend is a member of the Health Committee, which took evidence from a professor with expertise in this issue, who, sadly, related some of the facts around suicides related to gambling. It is really important that we remember that it is not just the person who is gambling who faces the consequences of harm but the families and the communities they live in. That is why we are trying to take a balanced approach and having a full, open consultation about ensuring we have a socially responsible sector that protects those most at risk of harm.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her statement. In discussions I have had with her, she has shared the concern many of us in the House have about the need to have drastic and clear changes in the management of FOBTs. My hon. Friend the Member for North Antrim (Ian Paisley) referred to online gambling, and perhaps I could urge the Minister to take more cognisance of that issue. None the less, the consultation is important, and 450,000 addicts cannot be ignored. The Minister mentioned the figure of between £2 and £50 for a stake. I urge her to make sure the stake is closer to the lower figure than the higher figure and to reduce the harmful addiction we have to gambling in this country.

[Tracey Crouch]

I am grateful to the hon. Gentleman for his question, and I hope he and many others will respond to the consultation with their views. We are trying to ensure that we take all people’s views into account before we make a decision on what the stake is.

[Mr Philip Hollobone (Kettering) (Con)]

My constituents will be shocked by the figures the deputy Leader of the Opposition shared with the House. He said there were 430,000 problem gamblers and that the number had gone up by a third in recent years. Are those numbers that the Government recognise? What do the Government say are the causes of this? Were the Minister to limit the stakes on FOBTs to £2, how many fewer problem gamblers would there be?

[Tracey Crouch]

The deputy Leader of the Opposition was absolutely correct—those are Government figures. There are 430,000 problem gamblers in Great Britain and a further 2 million who might be at risk. About 50,000 call the national helpline on gambling addiction every year, and about 8,000 are getting treatment—but that figure does not include those who get treatment under the NHS system. We are looking at all the areas of harm around this. It is not just about problem gamblers: it is also about those at risk of harmful gambling, and the consequences for and impact on those individuals and their families. I encourage my hon. Friend to look at the consultation and the impact assessment and come to a view on which will be the best stake, and encourage his constituents to do the same.

[David Linden (Glasgow East) (SNP)]

Given that £35 million was frittered away in one year in Glasgow on fixed odds betting terminals, I am disappointed that we are going for another consultation on this and not getting action on it. If the Government are in listening mode, may I make a plea that we do move to cutting the stake to £2, and will the Minister come to Baillieston’s Main Street, which is littered with betting terminals? People are obsessed with and actually addicted to these machines, so we can take action sooner rather than later?

[Tracey Crouch]

We are following due process on this issue. It is really important that we do not rush measures through, because we have seen that hastily made legislation in this area can cause great impact and great harm, as with the Gambling Act 2005.

Gambling

Tracey Crouch Excerpts

Tuesday 31st October 2017 Written Statements

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

I wish to inform the House that on 31 October 2017, the Department for Digital, Culture, Media and Sport published a consultation on proposals for changes to gaming machines and social responsibility requirements across the gambling industry.

The Government announced a review of gaming machines and social responsibility measures in October 2016. The objective of the review was to ensure we have the right balance between a sector that can grow and contribute to the economy, and one that is socially responsible and doing all it should to protect consumers and communities. The responses to the call for evidence have also been published alongside this consultation so that respondents can see the evidence that we have drawn on in developing these proposals.

We believe that the current regulation of B2 gaming machines is inappropriate to achieve our stated objective of protecting consumers and wider communities. We are therefore consulting on regulatory changes to the maximum stake, looking at options between £50 and £2, in order to reduce the potential for large session losses and therefore to the potentially harmful impact on the player and their wider communities.

While the industry proposes increases to the remaining stakes and prizes, and permitted numbers and allocations across other categories of machine (B1, B3, B3A, B4, C and D gaming machines), we believe retention of the current regulatory environment will better protect players from potential harm than industry’s proposed increases.

We are aware that the factors which influence the extent of harm to the player are wider than one product, or a limited set of parameters such as stakes and prizes, and include factors around the player, the environment and the product. We are therefore also consulting on corresponding social responsibility measures across gaming machines that enable high rates of loss, on player protections in the online sector, on a package of measures on gambling advertising and on current arrangements for the delivery of research, education and treatment (RET). Within this package, we want to see industry, regulator and charities continue to drive the social responsibility agenda, to ensure all is being done to protect players without the need for further Government intervention, and that those in trouble can access the treatment and support they need.

The consultation will close on 23 January 2018, following which Government will consider its final proposals.

The consultation is available at:

https://www.gov.uk/government/consultations/consultation-on-proposals-for-changes-to-gaming-machines-and-social-responsibility-measures.

A copy will be deposited in the Libraries of both Houses.

[HCWS207]

Oral Answers to Questions

Tracey Crouch Excerpts

Thursday 14th September 2017 Commons Chamber

[Diana Johnson (Kingston upon Hull North) (Lab)]

9. When her Department plans to make an announcement on its review of fixed odds betting terminals.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

As I made clear in questions before the recess, there will be no further announcement on this matter before October.

[Diana Johnson]

I thank the Minister for reiterating that answer, but has she given any thought to the fact that the gambling industry is failing to meet the 0.1% donation suggested by GambleAware to help to fund research and the treatment of people suffering from gambling addictions? Will she now act on that?

[Tracey Crouch]

Of course I give this regular thought. That is a voluntary commitment from the gambling industry, but I have met GambleAware, and it is sometimes quite shocking to hear some of the stories. For example, one bookmaker—not a national bookmaker, I hasten to add—sent GambleAware a cheque for 1p as part of its contribution. That is not good enough. We have to consider the issue of gambling alongside that of social responsibility, and I would like the bookmakers to take responsibility for that.

[Mr Speaker]

Ah, yes: Hollobone on hockey.

[Mr Philip Hollobone (Kettering) (Con)]

10. If she will encourage greater participation in local hockey clubs.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

Not only do I support the continued investment of Sport England in grassroots hockey via England Hockey, but during the recess I put my own shins at risk, borrowed a stick and did a “back to hockey” session at a local club. While I was absolutely shattered, I loved it more than I ever did when I was at school.

[Mr Hollobone]

Will the Sports Minister join me in congratulating all the hard-working volunteers and talented players at Kettering hockey club on their brand-new astroturf pitches, which are located in the heart of Kettering and generously funded by Bishop Stopford School? The hockey facility is now the best in Northamptonshire.

[Tracey Crouch]

I would be delighted to join my hon. Friend in congratulating Kettering hockey club. A number of hockey clubs across the country are investing in their facilities to attract more people to participate in hockey.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

11. What steps her Department is taking to tackle discrimination in sport.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

It is a good job I am fit, Mr Speaker.

There is no place for discrimination of any kind in sport. All forms of discrimination are unacceptable, and the Government are committed to tackling it.

[Vicky Foxcroft]

Following the successful “This Girl Can” campaign, which encouraged an extra 250,000 women to play sport, it remains disappointing that those from working-class backgrounds are 13% less likely to take part in sport. Do the Government have a strategy for tackling that? If so, what is it, and is it properly funded?

[Tracey Crouch]

There is a stubborn gender gap in sports participation. We are addressing it through a variety of initiatives, including the “This Girl Can” campaign—although that is not the only thing; there are a number of excellent initiatives out there—and we are helping to shift the gender gap through investment in not only grassroots sport but in elite sport, in which we saw several successful women’s teams during the summer and beyond, which will inspire other women and girls to get involved in sport.

[Philip Davies (Shipley) (Con)]

Will the Minister congratulate the people who organised the International Mixed Ability Sports rugby tournament in Spain this summer? As she knows, the first of those tournaments was held in Bingley in my constituency. The organisation wants to expand mixed ability sport, so that it covers many more sports, but it needs much more funding to do so. The Minister has given the organisation great support, but will she give it more support to get the funding it needs, so that more people can play mixed ability sport?

[Tracey Crouch]

That is a question from my hon. Friend that I can agree with.

It was a pleasure to meet the mixed ability sports rugby team about 18 months ago to discuss their tournament in my hon. Friend’s constituency, and I was pleased by their success over the summer recess. I would, of course, be happy to meet them again, and him, to discuss taking this forward.

[Joan Ryan (Enfield North) (Lab)]

18. Will the Minister join me in congratulating the England team who took part in the women’s rugby world cup in Ireland over the summer? I watched them play and they were magnificent.The organisation Sports Coach UK has said that one reason for lower participation rates in physical activity among black, Asian and minority ethnic women and girls, and women and girls in general, is that women are under-represented in coaching. What further steps are the Government prepared to take to provide tailored and targeted support to help to develop women coaches from BAME communities?

[Tracey Crouch]

I am happy to join the hon. Lady in congratulating the England women’s rugby team, and also, of course, the England women’s cricket team, who won the world cup as well. I was a coach in an all-girls football club, but I was the only female coach at that club, so I completely understand the point that she has made. The sports strategy sets out, very carefully, our wish to see more female coaches. We need to ensure that mums who take their kids to sports events become involved, rather than just cheering the kids on in the background, and we have tried to address that through the implementation of the sports strategy.

[Mr Marcus Fysh (Yeovil) (Con)]

14. Yeovil Town ladies football club has achieved great success. It has reached the Football Association’s Women’s Super League 1, and is inspiring girls and women throughout the south-west. What more can the Minister do to help it to continue to inspire?

[Tracey Crouch]

Yeovil Town is indeed an example of great success in women’s football, and I join my hon. Friend in congratulating the club on what it is doing. I also congratulate other female football clubs around the country that are doing their bit to inspire the next generation of girls to get involved in football.

[Mr Speaker]

While we are on the matter of congratulations, I hope that the whole House will want me to join me in congratulating Jamie Murray and Martina Hingis on winning the mixed doubles title at the US Open.

[Dr Rosena Allin-Khan (Tooting) (Lab)]

It has been a successful summer for British women in sport, and I hope that the Secretary of State and the Minister will join me in paying tribute to all the women who took part in sporting events on behalf of our nation. However, in recent months, a senior football manager has threatened a female supporter, the body that governs English rugby has refused to extend contracts to the women’s national team, a high-profile radio presenter has questioned the nationality of one of our own Wimbledon stars, and serious allegations have been made of racism in the England women’s football team. At this delicate time, women in sport need to know that discrimination will not be tolerated. Will the Minister update the House on what she and her Department have done in response to the four incidents that I have outlined?

[Tracey Crouch]

It is great to see the hon. Lady back after the summer recess. I know you will be shocked to learn, Mr Speaker, that, owing to a conspiracy, she and I were disqualified from the three-legged race during the parliamentary sports day. Thankfully a full inquiry is under way to relieve the shame on Parliament.

The hon. Lady raises some extremely serious issues. Obviously, I have been keeping abreast of them. I talk regularly to all the national governing bodies. We need to have best practice in place to ensure that there is no discrimination in any of those bodies and that such issues do not deter other women from participating in sport at either grassroots or elite level.

[Rachael Maskell (York Central) (Lab/Co-op)]

12. What progress she has made on improving accessibility to heritage sites.

--- Later in debate ---

[Mark Pawsey (Rugby) (Con)]

It is almost a year since World Rugby established its hall of fame, appropriately at the birthplace of rugby in the Rugby art gallery and museum. We will shortly have the annual induction of more greats of the game. Does the Sports Minister agree that this could play a major role in attracting local and international tourism?

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch)]

The hon. Member for West Bromwich East (Tom Watson) said that surprise was the name of the game, but I am not surprised by my hon. Friend’s question about rugby. We all understand the importance of rugby in his constituency, and the hall of fame has provided a great opportunity for tourism and heritage. I join him in his support of that.

[Clive Efford (Eltham) (Lab)]

T5. Further to the answer that the Secretary of State gave to my hon. Friend the Member for West Bromwich East (Tom Watson), the online gambling industry has exploded since the Gambling Act 2005 and is now worth more than £6 billion a year. Too much advertising is now reaching young people, particularly through social media outlets. What is the Minister doing to regulate advertising through social media outlets and the offers that allow young people to gamble for free?

[Tracey Crouch]

The Gambling (Licensing and Advertising) Act 2014 brought all online gambling sites under the regulatory remit of the Gambling Commission. The commission keeps all such matters under regular review, and the outcomes of that include a recent fine for 888. We continue to look to ensure that the regulation of both online and land-based gambling is robust.

--- Later in debate ---

[Liz Twist (Blaydon) (Lab)]

T6. Blaydon has a growing number of small and micro-charities, many of which are trying to fill the gaps left by Government cuts to local authorities, and their survival is often precarious. Following the Secretary of State’s discussions within the sector, what action is she taking to help those charities with fundraising and other support?

[Tracey Crouch]

We are working on a programme to promote local and small charities later this year, further details of which will be announced shortly. If the hon. Lady has any particular concerns about small charities in her constituency, I would be happy to meet her to discuss them.

[Mims Davies (Eastleigh) (Con)]

We simply must take steps to protect online users, particularly through education about online responsibility. How will the Government’s Data Protection Bill, which I welcome, benefit people in terms of the data held about them? I am thinking in particular of the use of children’s data and consent.