My hon. Friend is absolutely right. People ought to bear in mind a number of very small companies, such as Probability, NetPlay TV, Gamesys, Adobo Games and tombola, which advertises a lot on TV and is growing. Those companies employ lots of people in the UK, but if the Bill’s regime of a 15% tax rate had been in place when they started, they would never have got off the ground because it would not have been worth their while. The British economy cannot afford to lose those companies and the jobs they create. This is not about Ladbrokes and William Hill. I suspect they will survive whatever the rate of taxation. It is the smaller companies we should be thinking about.
I want to address one or two points that I do not think have been cleared up. Will software suppliers such as Oracle and Microsoft need to apply for a Gambling Commission licence, given that they are key suppliers to software providers of the online gambling and gaming industry? The Bill does not make it clear whether they will need a licence. I am not sure whether the Minister will be receptive to redrafting the Bill in order to make clear the extent to which software providers need to go down their supply chain to require suppliers to apply for a Gambling Commission licence. Italy, Denmark and France do not need software suppliers to be licensed. My understanding is that only Spain does, and that that is currently under review. I urge the Minister to consider that point and ensure that it does not happen.
Another point is the extent to which the staff and ultimate beneficial owners of applicants are required to provide personal information. With the possible exception of banks, no other industry will be required to provide so much personal detail, not just of directors but of virtually anyone in a senior position in the organisation. Why is that needed?
I support the principle of the Bill, but not for the reasons given by the Government for introducing it. Frankly, the regulation argument is nonsense and does not stack up at all. This is about taxation and on that basis I support the Bill, but only if the Government set the taxation at a sensible and affordable rate. Before we get to Third Reading, I hope the Treasury will indicate the likely taxation rates and whether it will consider tiered rates or a much lower rate. If the tax rate is too high, I may no longer support the Bill, because it could have unintended and damaging consequences.
Whatever revenue is raised will be good for the Treasury—it will get more in the future than it is getting now—so why not try the rate at 5% and see what happens? If there is no big issue, it could then increase it to 10%, and to 15% at a future date. Why go straight in at 15% and perhaps have lots of unintended consequences?
It should be done incrementally: start at 5%, see how it goes and review it from there. I hope the Minister will take that on board and urge her Treasury colleagues not to damage what otherwise could be sensible legislation.
2.38 pm