The UK Government's decision to raise gross profits tax on bingo from 15 per cent to 22 per cent is one of the principal causes for the closure of clubs, says operator Gala Coral's chairman Neil Goulden.

"The Treasury has got its numbers wrong on bingo," he said.

The group is cutting 300 jobs through reorganisation and closing five more clubs. Gala Coral is a significant bookmaker, bingo club and casino operator in the UK. The closures and redundancies are part of a plan to saved around £10m annually from the group’s costs.

The clubs closing are in Hull, Glasgow, Leven, Pitsea and Aldridge and follow closely on the recent closing of the Crystal Palace location in London.