The heated debate over retail gambling’s presence in the UK has intensified amongst Labour MPs.
It comes as Labour MP Dawn Butler urged the government to address the “rapid spread” of betting shops on the UK high street.
Butler, MP for Brent East, has rallied against the Aim to Permit clause, which limits the power local councils have to refuse applications for new gambling establishments.
“Why are there barely any betting shops in Canary Wharf but rows of them in places like Bethnal Green? It’s not by accident. Aim to Permit makes it easy for betting companies to target less wealthy areas. It’s time to end it,” said Butler in a campaign video.
Butler’s campaign deepens pressure on the government after Greater Manchester Mayor Andy Burnham joined UK councils in demanding urgent Gambling Review action amid fears that local communities are being overwhelmed by “24-hour slot shops”.
In a letter addressed to DCMS Secretary Lisa Nandy, 36 councils and two mayors demanded “key reforms of the Gambling Act”, including giving councils more control to reject licence applications and considering local debt in planning decisions.
The letter, authored by Muhammed Butt, Leader of Brent Council, the local authority that includes Butler’s Brent East constituency, said: “The communities we serve are experiencing the detrimental impacts of the proliferation of gambling venues. To be clear, we are not calling for an outright ban on gambling in any form; rather, we are offering our collective support for much-needed reform of the legislation to suit the modern age.”
Alongside her campaign video, Butler has also launched an Early Day Motion, urging MPs to remove the Aim to Permit clause in the Gambling Act 2005.
Despite Butler’s opposition to the prevalence of the gambling industry, other members of the Labour party have advocated for the economic boost the sector provides.
Richard Baker, MP for Glenrothes and Mid Fife, hailed the role of modern betting shops for providing “jobs and footfall on high streets that have struggled in recent years”.
In an op-ed published by Politics Home, Baker emphasised that betting and gaming contributes over £6.8bn a year to the UK economy, and generated £4bn in tax.
The gambling industry is currently bracing for a potential tax hike across certain sectors, as the UK government is seeking opinion on a proposal to merge three existing tax categories into a single standard – known as the Remote Betting and Gaming Duty (RBGD).
Although tax rises have not been confirmed as part of this change, it is likely that General Betting Duty (15% for fixed-odds bets, 10% for sports spread bets and 3% for financial spread bets) and Pool Betting Duty (15%) will rise to meet the current Remote Gaming Duty of 21% of gross profits.
“No-one disputes the need to keep tax policy under review,” said Baker. “But any reform must be carefully considered along with any potential unintended consequences – not just for the sector itself, but for the sports and communities that benefit from it.”
The MP also warned that making betting too expensive will push players towards the black market, where they will not be afforded the same protections as playing within the regulated sector.
He concluded: “If we want thriving high streets, strong communities, world-class sport, and a safe environment for those who choose to bet, then we must ensure that our tax regime supports a sustainable, regulated betting market.”
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