FOBT Rebellion about to Break Out?

The UK government might be forced to implement changes on FOBTs six months earlier than planned (October 2019). The debate has been going on for awhile, culminating with the UK Minister of Sport Tracey Crouch resigning over the implementation delay.

It was none other than Tracey Crouch to have launched the study into the country’s 34,000 terminals and their effects. The former minister has now joined some 70 of her party colleagues pushing for an early FOBT reform that should cut the maximum FOBT stake from £100 to £2. The MPs include the Treasury committee chair, Nicky Morgan, Johnny Mercer, Priti Patel, Justine Greening, and Zac Goldsmith, as well as politicians from Labour, the Liberal Democrats, DUP, SNP, and Plaid Cymru. The list goes on. The group has signed two amendments, both due for debate on November 21.

The opposition is fierce in the attempts to put things straight as soon as possible. John McDonnell himself has said:

“The chancellor’s position on this issue is now completely untenable and he must now back the cross-party amendment to the finance bill, which Labour will be supporting.”

The UK is set to implement a new, upward-revised remote gambling duty tax (21% of the GGY) in early 2019, as to compensate for the expected FOBT losses. An additional 6% tax is also to be imposed on offshore gaming companies offering online casino games. However, whereas the hike will take place in January, the FOBT decision has been postponed until 2020.

‘Indefensible Position’

With the FOBT cut not being included in the budget, the date of its implementation cannot be changed via an amendment to the finance bill. On the other hand, the bill does not include the upcoming gambling duty tax either.

That fact is the opposition’s trump card. Their amendments would effectively prevent the government from moving forward with the hike unless FOBT stakes were reduced in April 2019.

Duncan Smith, the Labour MP Carolyn Harris, and the SNP’s Ronnie Cowan have also introduced a separate amendment that would see the Treasury launch a review based on “independent advice”, which would enable both policies to be implemented in April next year. If it was given the green light, that is.

“Everyone who has signed this is deadly serious about voting for these amendments unless the government has an alternative which is acceptable to everybody,” says Smith.

“Enough is enough, MPs on all sides of the House are calling on the government to see sense and bring forward the stake cut for FOBTs to April 2019. The government’s position is indefensible. They can either accept our amendments or expect to be defeated in the finance bill next week. It is a great shame for all concerned that it has come to this,” Harris elaborates.

If the Government refuses to accept the amendment, they will run the risk of becoming the first administration to lose a Budget vote since 1978. In that year, Jim Callaghan’s minority administration was voted down on income tax rates.

Source:

“Jacob Rees-Mogg and Boris Johnson join FOBT rebellion”, theguardian.com, November 12, 2018.