MP for Shipley, Philip Davies, has added his voice to a fresh wave of MP’s who are becoming increasingly concerned about the effect of tax measures on the offline bingo industry. Mr Davies will demand that the Government stops taxing bingo at a higher rate than other gambling venues amid fears more halls will close and more jobs lost.
MP Philip Davies said bingo was under threat because of high taxes.
Labelling the game of bingo as a “hugely important social interaction” activity, Mr Davies called for Westminster to rally in ensuring it’s future was secured in the UK.
He said: “The taxation for bingo is harsher than other forms of gambling, I am not asking for special treatment for bingo halls but for them to have the same deal as others.”
Dozens of bingo halls have closed this year alone, taking the total of bingo hall closures in the lst three years up to a worryingly high 177. Operators have been faced with problem after problem, including the smoking ban, regulatory changes on gaming machines and also a surge to the online version of the game. When the April 2009 Budget released plans to increase the level of taxation placed on the offline bingo industry at 22% from 15%, many experts and key figures were quick to protest that the proposals could be the final nail in the coffin.
Support quickly gathered for the cause, with a huge protest outside Westminster organised by key industry figures, operators and regular bingo players. Perhaps one of the biggest gripes is best summed up by Gala Bingo Bradford manager Wayne Bousfield, who commented “Other forms of soft gambling are only taxed at 15 per cent so why should bingo pay 22 per cent?”
Many feel the traditionally “soft” game of bingo is less harmful than other forms of gaming, such as casino’s, which are subject to a much lower level of tax, leading some to criticise the Government for unfairly singling out land based Bingo clubs.
But the Treasury has denied the tax measures are based on any “grading” criteria, and claimed it would not be “grading” gambling – despite repeated complaints from MPs over the tax rise for the “innocent” bingo industry following the 7pt jump in duty.
Speaking in Parliament, Kelvin Hopkins (Lab, Luton North) asked: “Is it not more sensible to tax the more dangerous forms of gambling to a higher level than the innocent forms of gambling like bingo?”
Sarah McCarthy-Fry, the exchequer secretary to the Treasury, responded, saying: “I don’t think we’re in the position of grading what gambling is. We recognise the important part that bingo clubs play in the community and all these things are taken into account when decisions are made.”
What is for certain though is that as clubs close, jobs will be lost. Only recently, offline giant Mecca Bingo said that if the tax rise has an adverse effect, that they would have to undertake a massive strategic review of it’s offline bingo operation. For the sake of many communities and the people in them, let’s hope the Government can finally wake up and start backing bingo.
