The UK Bingo Association has warned that the industry has once again been ignored by the government following Wednesday’s Budget announcement.
Chancellor George Osborne set out a number of measures in his speech to the House of Commons. However, despite lobbying efforts to address the current tax regime, the Bingo Association argued that the industry is unlikely to benefit from the government’s new plans.
“The bingo industry continues to be subject to an inequitable tax regime, being required to pay a rate of 20 per cent gross profits tax, while other forms of gambling (including betting shops and even online bingo sites) pay a rate of 15 per cent,” said Miles Baron, chief executive of the Bingo Association. “This tax burden is stifling the growth of our industry, remaining the single biggest constraint on the financial viability of bingo clubs, restricting investment and being a significant contributor to the closure of an average of one club per month.”
The government ought to be considering reducing taxes based on “direct evidence” that it will stimulate growth, he continued, noting that an Ernst and Young report indicated that cutting the tax rate for bingo to 15 per cent would increase revenue to the Exchequer by £35m over a four-year period.
“This would fit in with the government’s growth agenda in a direct and immediate way. The Culture, Media and Sport Select Committee recently recommended that bingo tax be reduced, and the Bingo Association is disappointed that the government has failed to act on this yet again.”
