Bingo Tax Rises And Employment Falls

The Budget held in April this year had completely misjudged the effects of the increase in bingo duty.

The Treasury’s mistakes have put hundreds of jobs at risk according to bingo industry leaders on Tuesday.  Gala Coral Bingo has recently announced its second cut in jobs in the past eight months.  This week, industry leaders have tried solidly to convince the Treasury to reconsider the decision regarding bingo’s tax increase from 15 to 22 per cent in next week’s Finance Bill.

Neil Goulden met with Treasury minister Sarah McCarthy-Fry earlier this week.  He claimed that the Budget Red Book was hasty and that the Treasury thought the increase would benefit the bingo industry by 15 million but instead it has cost the industry 20 million.

‘The increase in taxation is leading to the closure of five more clubs, which put at risk 100 jobs.  That decision was based on false assumptions,’ said Goulden.

Rank Group predicted that the misjudgment by the Treasury would cause around 30 closures this year.

‘That would mean job losses of upwards of 600, on the back of 4,000 job losses in the last four to five years,’ commented Dan Wough of Rank.

Gala Coral announced 200 job losses in late 2008 and blamed the smoking ban as a central factor.  Gala’s Bingo estate has fallen from 172 halls in 2007 to 148 in 2008.

The Treasury have not confirmed or hinted of any changes in the decision thus far,

‘The costings methodology was shared with the industry before budget and key assumptions used in the costing came from information provided to the Treasury by the bingo industry,’ reported the Treasury.