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Sports minister resigns over chancellor's delay to gambling curb Sports minister resigns over chancellor's delay to gambling curb
(35 minutes later)
Sports minister Tracey Crouch has resigned in protest at the government’s “unjustifiable” refusal to speed up plans to curb controversial fixed-odds betting terminals (FOBTs).Sports minister Tracey Crouch has resigned in protest at the government’s “unjustifiable” refusal to speed up plans to curb controversial fixed-odds betting terminals (FOBTs).
Crouch, who launched the review that concluded FOBT stakes should be slashed from £100 to £2, quit after the chancellor revealed in this week’s budget that the change would not take effect until October next year. The Conservative MP had lobbied hard for the cut to be implemented as soon as possible, in April 2019. Crouch, who launched the review that concluded that FOBT stakes should be slashed from £100 to £2, quit after the chancellor revealed in this week’s budget that the change would not take effect until October next year. The Conservative MP had lobbied hard for the cut to be implemented as soon as possible, in April 2019.
In a letter to the prime minister, Crouch said the stake cut was being delayed “due to commitments made by others to those with registered interests”.In a letter to the prime minister, Crouch said the stake cut was being delayed “due to commitments made by others to those with registered interests”.
The comment is thought to be a thinly veiled reference to lobbying efforts by MPs with ties to the betting industry to postpone the stake cut. The comment is thought to be a reference to lobbying efforts by MPs with ties to the betting industry to postpone the cut in stakes.
“From the time of the announcement to reduce stakes and its implementation, £1.6bn will be lost on these machines, a significant amount of which will be in our most deprived areas, including my own constituency,” Crouch wrote. “From the time of the announcement to reduce stakes and its implementation, £1.6bn will be lost on these machines, a significant amount of which will be in our most deprived areas, including my own constituency,” Crouch wrote. “In addition, two people will tragically take their lives every day due to gambling-related problems and for that reason as much as any other I believe this delay is unjustifiable.”
“In addition, two people will tragically take their lives every day due to gambling related problems and for that reason as much as any other I believe this delay is unjustifiable.”
She added that “ministers must adhere to collective responsibility and cannot disagree with policy, let alone when it’s policy made against your wishes relating to your own portfolio”.She added that “ministers must adhere to collective responsibility and cannot disagree with policy, let alone when it’s policy made against your wishes relating to your own portfolio”.
In her response, Theresa May said she was disappointed to receive Crouch’s resignation and denied there had been a delay in cutting the maximum stake. She wrote to Crouch that “we listened to those who wanted it to come into effect earlier than April 2020 and have agreed that changes should be in place within the year – by October 2019”. In her response, Theresa May said she was disappointed to receive Crouch’s resignation and denied that there had been a delay in cutting the maximum stake. She wrote to Crouch that “we listened to those who wanted it to come into effect earlier than April 2020 and have agreed that changes should be in place within the year – by October 2019”.
Crouch is understood to have clashed with Jeremy Wright, minister for the department for digital, culture, media and sport (DCMS), over the delay, with the sports minister insisting that April 2019 was a red line for her. Crouch is understood to have clashed with Jeremy Wright, the minister for the department for digital, culture, media and sport (DCMS), over the delay, with the sports minister insisting that April 2019 was a red line for her.
It is with great sadness I have resigned from one of the best jobs in Government. Thank you so much for all the very kind messages of support I have received throughout the day. Politicians come and go but principles stay with us forever. pic.twitter.com/rD8bEbCQcKIt is with great sadness I have resigned from one of the best jobs in Government. Thank you so much for all the very kind messages of support I have received throughout the day. Politicians come and go but principles stay with us forever. pic.twitter.com/rD8bEbCQcK
The six-month postponement, which will allow bookmakers to collect an extra £900m from the machines, has also sparked outcry among campaigners and MPs.The six-month postponement, which will allow bookmakers to collect an extra £900m from the machines, has also sparked outcry among campaigners and MPs.
Wright defended the delay in parliament on Thursday in the face of fierce criticism from both sides of the house, including from former Tory leader Iain Duncan Smith. Wright defended the delay in parliament on Thursday in the face of fierce criticism from both sides of the house, including from former Tory leader Iain Duncan Smith. Duncan Smith later invited chief secretary to the Treasury Liz Truss to consider bringing forward the cut in the House of Commons on Thursday evening, amid speculation that Crouch’s threat to resign had forced the government into a U-turn.
Duncan Smith later invited chief secretary to the Treasury Liz Truss to consider bringing forward the cut in the House of Commons on Thursday evening, amid speculation that Crouch’s threat to resign had forced the government into a U-turn. Truss said: “I don’t believe it’s an issue for the finance bill, but I’m happy to discuss with my honourable friend about what more we can do.”
Truss said: “I don’t believe it’s an issue for the finance bill but I’m happy to discuss with my honourable friend about what more we can do.” Crouch is now likely to add her name to a planned amendment to the finance bill, the act that implements the budget. Duncan Smith and Labour MP Carolyn Harris are expected to lay the amendment, which is believed to have the support of about 35 Tory rebels, leaving the government facing the prospect of a bruising defeat.
The refusal to back down is understood to have triggered Crouch’s resignation and she is now likely to add her name to a planned amendment to the finance bill, the act which implements the budget.
Duncan Smith and Labour MP Carolyn Harris are expected to lay the amendment, which is believed to have the support of about 35 Tory rebels, leaving the government facing the prospect of a bruising defeat.
People close to Crouch said her resolve had been hardened by meetings with the parents of children who took their own lives after becoming addicting to gambling through FOBTs.People close to Crouch said her resolve had been hardened by meetings with the parents of children who took their own lives after becoming addicting to gambling through FOBTs.
In a letter to Philip Hammond, some of the parents who Crouch met told the chancellor he would be “morally bankrupt” if he allowed bookies to maintain FOBTs at £100 a spin until October.In a letter to Philip Hammond, some of the parents who Crouch met told the chancellor he would be “morally bankrupt” if he allowed bookies to maintain FOBTs at £100 a spin until October.
The Gambling With Lives group told Hammond that “FOBTs were an instrumental factor in our children’s deaths”. The Gambling With Lives group told Hammond that “FOBTs were an instrumental factor in our children’s deaths”. “Every month the reduced stake implementation is delayed sees tens of thousands more young people becoming addicted, and dozens of gambling-related suicides.
“Every month the reduced stake implementation is delayed sees tens of thousands more young people becoming addicted, and dozens of gambling-related suicides. “The chancellor would be morally bankrupt should he continue to side with the bookmakers and allow them to profit at the expense of young people’s lives. How many more lives need to be lost before the government finally acts and implements the reduced FOBT stake?”
“The chancellor would be morally bankrupt should he continue to side with the bookmakers and allow them to profit at the expense of young people’s lives.
“How many more lives need to be lost before the government finally acts and implements the reduced FOBT stake?”
Labour’s deputy leader and shadow DCMS minister Tom Watson said: “Tracey Crouch has taken a courageous and principled decision to resign from the government over Jeremy Wright’s decision to delay cutting the maximum stake on FOBTs.Labour’s deputy leader and shadow DCMS minister Tom Watson said: “Tracey Crouch has taken a courageous and principled decision to resign from the government over Jeremy Wright’s decision to delay cutting the maximum stake on FOBTs.
“She poured her heart and soul into a significant review of these destructive machines, faced down a systematic lobbying attempt by the gambling industry and took the right decision for those suffering from problem gambling, their families and communities. “She poured her heart and soul into a significant review of these destructive machines, faced down a systematic lobbying attempt by the gambling industry, and took the right decision for those suffering from problem gambling, their families and communities.
“The new secretary of state has threatened all of this good work. He has prioritised corporate interests over victims, profits over public health and greed over good. He should be thoroughly ashamed.”“The new secretary of state has threatened all of this good work. He has prioritised corporate interests over victims, profits over public health and greed over good. He should be thoroughly ashamed.”
Speaking in the House of Commons earlier, Wright said the stake cut had not been delayed but had in fact been brought forward compared to an earlier planned date of April 2020. Speaking in the House of Commons earlier, Wright said the stake cut had not been delayed but had in fact been brought forward from an earlier planned date of April 2020. He said the gambling industry needed time to prepare for the economic impact of the changes.
He said the gambling industry needed time to prepare for the economic impact of changes announced in the budget.
FOBTs are worth about £1.8bn a year to bookmakers, who have warned of shop closures and thousands of a job losses as a result of stakes being cut to £2.FOBTs are worth about £1.8bn a year to bookmakers, who have warned of shop closures and thousands of a job losses as a result of stakes being cut to £2.
The Treasury also expects to lose £1.15bn in taxes over five years due to the decision and has said it will pay for this by increasing the tax on online gambling from 15% to 21%, raising £1.225bn over the same period.The Treasury also expects to lose £1.15bn in taxes over five years due to the decision and has said it will pay for this by increasing the tax on online gambling from 15% to 21%, raising £1.225bn over the same period.
Wright said the delay was not just about giving bookmakers time to absorb the impact of FOBT curbs, but also to allow online operators to prepare for their increased tax burden.Wright said the delay was not just about giving bookmakers time to absorb the impact of FOBT curbs, but also to allow online operators to prepare for their increased tax burden.
A spokesperson for charity Christian Action Research and Education (Care) said: “This all looks like there has been a dodgy backroom deal done with the bookies at the expense of communities and problem gamblers that will lose out with this delay. A spokesperson for charity Christian Action Research and Education (Care) said: “This all looks like there has been a dodgy backroom deal done with the bookies at the expense of communities and problem gamblers that will lose out with this delay. The idea that bookies need more time to prepare is simply absurd when weighed up against the profits that they will bank because of this delay.”
“The idea that bookies need more time to prepare is simply absurd when weighed up against the profits that they will bank because of this delay.”
Fixed-odds betting terminalsFixed-odds betting terminals
GamblingGambling
Budget 2018Budget 2018
Conservatives
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