Bingo operators in the UK have received a welcome break with a tax cut from 22 pence to 20 pence.

While this news is welcomed by the industry, operators have said the reduction does not compensate for the damage done in April’s budget, which saw Chancellor Alistair Darling remove VAT on bingo games but then increase tax from 15 pence to 22 pence.

Rank Group pointed out that April’s changes had cost the operator of Mecca bingo clubs £9m a year and that this move would claw back about £2.5m.