BGC slams UK chancellor over “hugely damaging” business rates exclusion
CEO Michael Dugher pens letter to chancellor asking why betting industry has been “deliberately left out to dry”
The Betting and Gaming Council (BGC) has called on Chancellor Rishi Sunak to reverse a “hugely damaging” decision to exclude casinos and betting shops from relief on business rates.
In a letter to the chancellor, BGC CEO Michael Dugher insists the industry has been “deliberately left out to dry” for “reasons no one can understand” as the government seeks to support businesses during the coronavirus pandemic.
In Tuesday’s government briefing on the Covid-19 outbreak, Sunak said businesses within the retail, leisure and hospitality sectors would pay no business rates whatsoever for a 12-month period. This was later reiterated in written answers to parliamentary questions.
Government said help on #businessrates would apply to all in #retail, hospitality & leisure, but high street #betting shops & #casinos excluded. With thousands of jobs now at risk, BGC’s @MichaelDugher @BrigidSimmonds have written to Chancellor #COVID19 https://t.co/7rRKaGv54E
— Betting and Gaming Council (@BetGameCouncil) March 20, 2020
However, in recent business rates relief guidance released to local councils, casinos and gambling halls are among five other business areas which are excluded from financial relief. Betting shops have been classified under financial services firms and are therefore excluded.
“Any suggestion that casinos are not part of the leisure industry is frankly bizarre when they provide entertainment, food and drink to millions of people every year,” said Dugher.
His letter highlighted that BGC members directly employ more than 70,000 people, pay over £3bn in taxes each year, contribute £350m to horseracing and between £120m and £200m to the UK tourism industry through international visitors and their spend, mainly in London.
“To be absolutely clear, all casinos and betting shops are currently loss-making with most casinos – up to 140 – due to close this weekend and nearly 7,000 high street betting shops expected to close imminently due to the lack of sport and government guidelines on the need for social distancing,” added Dugher.
“If there is no change in the government‘s approach, within months many casinos will be insolvent and we run the very risk that permanent closures of betting shops will occur.
“We would therefore be grateful if you could rethink this hugely damaging decision on business rates,” Dugher added, insisting there was cross-party support in parliament for a reversal.
Tim Ferris, partner at accountancy and advisory firm BDO, said: “While the measures announced in the budget to help businesses through the Covid-19 emergency were welcome, they did not go nearly far enough and we would urge the government not to exclude the betting and gaming sector, which employs over 100,000 people and also supports many sports that are enjoyed by millions.”