-
Casinos for you
BGC Warmly Welcomes the UK Government’s New Growth Plan
By Jeff Osienya Sep 25, 2022 IndustryFollowing the announcement of the Growth Plan 2022 by the UK’s Chancellor of the Exchequer, the Betting and Gaming Council has voiced its unequivocal support. Join us as we delve deeper into how the Plan will impact the UK gambling sector.The Betting and Gaming Council (BGC) has formally embraced the UK Government Growth Plan 2022, officially released by the Chancellor of the Exchequer, Kwasi Kwarteng, on Friday. As UK’s premier gambling industry trade body, the BGC has declared its intention to “play a leading role” in supporting the Growth Plan.
BGC CEO Michael Dugher lauded the growth agenda, describing it as ambitious and bold and one that would work by setting up a regulatory framework that allows businesses to thrive. The Plan, which has since faced backlash from non-Conservative leaders, reverses a planned business tax rise that would have seen corporation tax go from 19% to 25% next year.
According to the Chancellor, this will allow companies to use the extra cash to create employment opportunities, raise wages, and pay out dividends to be plowed into pension schemes. Moreover, the additional funds could simply be reinvested and hence contributing to the rebuilding of the economy.
Gambling: A British Success Story
As the new Prime Minister settles in at Number 10, the gambling community awaits the pending White Paper on gambling that was put on hold after her predecessor’s resignation. The BGC boss did not forget to mention the review of the Paper and reminded the government to consider it as the gaming industry plays a pivotal role in the UK’s socio-economic growth. Part of the official statement on BGC’s website reads:
Quote“The UK’s regulated betting and gaming sector is already a British business success story, annually supporting 119,000 jobs, contributing £7.7 billion ($8.5 billion) to the economy, and generating £4.5 billion ($5 billion) for the Treasury. And they are ready to invest even more, with a further 15,000 extra jobs expected to be created by 2027.”
However, from what analysts have been saying, PM Liz Truss seems to be occupied with other pending matters. Therefore, the gambling subject and the White Paper, in particular, may be postponed even more. Nevertheless, the BGC CEO’s sentiments were that any progress made on the White Paper would be much appreciated. He said in part:
Quote“We are committed to continuing to raise standards on safer gambling and urge the government to work with the industry to make progress on a gambling White Paper soon so that our members have the regulatory clarity they need to invest in the future. We believe the right regulatory reforms can help a thriving sector reach new heights while delivering on the Government’s goal to improve player safety, a goal we share and are already working towards.”
It’s worth pointing out that UK’s gambling industry is among the best regulated globally, with a low problem gambling rate of just 0.2%.
Mike Dugher added that BGC members provide a solid economic pillar for the hard-pressed high streets of Britain with their bookmakers. Meanwhile, casino gaming and bingo offer substantive support to the tourism, hospitality, and leisure industry.
Per the official statement, the BGC is also committed to supporting the government’s Leveling Up program, which is supposed to be realized by 2030. The program entails giving communities that feel left out of development a chance to catch up with the rest of the country. It is ultimately expected to promote globally competitive economies throughout the UK.
So, in his statement, Dugher also mentioned the mission to grow world-leading British tech in cities such as Stoke-on-Trent and Leeds. In these two local jurisdictions alone, the gambling sector supports over 8,500 employment opportunities and pumps over £630 million into their economies, according to the BGC CEO.
UK’s Gambling Sector to Win Big From the Growth Plan
From the look of things, the Growth Plan is focused on resolving the current financial crisis facing UK citizens. And even though there’s no mention of the gambling industry in the Plan, companies invested in gambling-related ventures are expected to benefit substantially from the tax cuts.
Nonetheless, the Growth Plan has been heavily blasted since it was announced. Critics, for instance, are claiming that instead of helping the current situation that low-income earners are facing, it seeks to enrich the rich even more. The faultfinders have further argued that the additional debt the UK government will be taking will end up falling back on the underprivileged. Moreover, as we speak, the sterling pound is down at a 37-year low against the dollar.
However, Chancellor Kwarteng has since responded to the critics, voicing that his ‘mini budget’ is not a gamble. Rather, the tax cuts will, in fact, solve “the riddle of growth” the UK is currently facing. The gambling industry was among the worst hit during the pandemic, which explains why the BGC called on the government’s intervention back in August. Based on the newly unveiled Growth Plan, the intended measures may immensely work in favor of the gambling sector.
You might also like