Andy Burnham’s latest tax raid could lead to the closure of bingo venues across the UK. Industry bosses have warned of thousands of potential job losses as the Labour Party plans to increase gambling taxes in next month’s Autumn Budget.
It’s believed Chancellor John Healey is looking to double duty on slot machines to up to 40% in a bid to generate between £275 million and £458 million annually. While the Treasury is planning a tax raid on Category B gaming machines, commonly found in high street betting shops and casinos, bingo bosses say they could become “collateral damage” in the tax raid. While traditional bingo ticket sales have declined in recent times, slot machines have continued to grow in popularity and help raise significant revenue in halls across the UK.
As reported by the Daily Mail, Dominic Mansour, the chief executive of Buzz Bingo, said: “Unless bingo clubs are protected from such reform, the viability of bingo in the UK will be at risk. The numbers for Britain’s bingo could truly be up.”
Meanwhile, Richard Harris, the chief executive of Mecca Bingo owner Rank Group, said raising duty on machine games to 40% would cost his company around £35 million. This could lead to the loss of around 1,625 jobs, a quarter of Rank’s 6,500-strong workforce.
Mr Mansour agreed that even increasing the levy, which is currently 20%, to 25% “would leave around a third of our estate loss-making”. He added: “That would not only put our investment programme at risk but would lead to undoubtedly difficult decisions about clubs and jobs.”
Mr Harris is set for talks with Treasury officials next week but does not believe ministers “want to close bingo clubs”. He said the industry is at risk of becoming “collateral damage” as bing halls could lose significant revenue to hikes on game machines.
“If they become loss making, over time we are going to have to close those venues. That is less jobs and investment,” he explained. “You then also lose all the other taxes these casinos and bingo halls pay. Economically it’s really clear cut. Within 12 months, if the tax rate goes up the tax take goes down.”
He added that bingo halls are in the “hearts of communities”, providing entertainment and a place for locals to socialise. He described them as “local, social and low risk”.
A Treasury spokesman said: “The Chancellor is fully focused on his priorities, to give families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode, underpinned by a commitment to meet the fiscal rules.
“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
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