Bookmakers issue job loss warning to UK government
March 26, 2009 by mbates
Representives from the leading UK bookmakers William Hill and Ladbrokes have issued a warning to the Chancellor that any attempt to increase taxes and regulations in the April budget will lead to job losses and shop closures amid fears that the government is considering a raise of gross profits tax from 15pc to 17pc.
An industry insider said “Analysis by London Economics indicates that an increase in GPT from 15pc to 17pc would result in the closure of 845 betting shops and see the loss of 3,190 full time jobs,”. The gaming industry currently employs 40,000 people and operates over 8500 shops.
They have also indicated that an increase in taxes would see UK based operators relocate certain aspects of their business to offshore locations such as the Isle of Man and Gibraltar where taxes are set at around the 1pc mark.
The UK gaming industry currently contributes at least £1 billion in national and local taxes. This is on top of levies paid to the horse and greyhound industries which are thought to be in the region of £130 million per year.
