UK Parliament / Open data

Finance Bill

Proceeding contribution from Eric Illsley (Labour) in the House of Commons on Wednesday, 8 July 2009. It occurred during Debate on bills on Finance Bill.
It is always a pleasure to follow the hon. Member for Dundee, East (Stewart Hosie). As he points out, we have rehearsed these arguments previously, but he is right to say that the argument is about the closure of amenities for our constituents, the threat to bingo clubs and the facilities that they provide throughout the country, and the consequent job losses when such clubs close. The hon. Gentleman referred to the history of the argument, beginning with double taxation. The bingo industry has long argued that it is the only form of gambling subject to double taxation, with VAT levied on participation fees and gross profits tax on the overall profits of the industry. The industry argued for some years that it should be given parity with bookmakers, casinos and the internet, where harder forms of gambling take place, with larger sums of money, yet those are not subject to double taxation. For example, when someone walks into a betting shop to place a bet on a horse race, there is no charge involved in placing that bet. When I was preparing for today's debate, it occurred to me that we could go back a few years to arguments about bingo and other forms of gambling when advertising for bingo was not allowed, although it was allowed for other, harder, more commercial forms of betting. We seem to be involved in a similar argument now. There appears to be a bias against the bingo industry. In Committee on 13 May we explored the arguments, which were ably outlined by the hon. Gentleman. As a consequence, the Government undertook to remove the burden of double taxation in the Bill by removing VAT on participation fees. Double taxation is not the only problem facing the industry. There are other issues, which have been outlined in the House previously—the general economic situation, the smoking ban and other issues, which the industry accepts and which we are not using in support of that industry. The present argument is about the level of gross profits tax and the ending of double taxation—the double-edged sword of increasing gross profits tax to 22 per cent., without giving the industry time to adapt to the removal of VAT on participation fees, to see where those funding streams were likely to settle. There is an argument over the figures, as the hon. Gentleman pointed out, and there is some argument about the amount of VAT raised. My own constituency has suffered a bingo club closure. As I mentioned in the last debate, the remaining bingo club in my constituency has a membership of more than 20,000. These are important facilities in our constituencies. They have a large membership and it is important that we keep them as an amenity. The loss of a bingo club is a huge loss to the community, particularly if it is the only bingo club in town and a large number of people have to find an alternative leisure facility or go to another town to join another bingo club if that one remains open.
Type
Proceeding contribution
Reference
495 c1022-3 
Session
2008-09
Chamber / Committee
House of Commons chamber
Legislation
Finance Bill 2008-09
Back to top