To offset the economic downturn resulting from the coronavirus pandemic, the U.K. will dole out direct cash payments of £6,000 (US$8,374) per site in recovery grants, including to betting shops. The plan was announced by Rishi Sunak, Chancellor of the Exchequer, in advance of the national budget release on March 3.
Hospitality, accommodation and leisure venues will be able to apply for £16,000 because they will stay shuttered longer than other businesses, according to SBC News. In addition, the U.K. will pay 80 percent of employee wages for those hours when they cannot work.
The reopening of non-essential businesses takes place April 12 so long as vaccine rates rise and hospitalizations decline.
The Betting and Gaming Council (BGC), an industry trade group, supported the government move.
“The BGC would warmly welcome any additional support for betting shops, be that business rates or grants, particularly giving the pressure independent betting shops are under,” a spokesperson said in The Racing Post.
The betting and gaming industry contributes to Britain’s economy, said BGC Chief Executive, Michael Dugher. The industry employs 100,000 and contributed £4.5 billion contributed in taxes and £7.7 billion or the economy. The industry lost more than 5,000 jobs and 375 businesses since the beginning of 2020, he said.
“It is our hope that the forthcoming budget will be a springboard to recovery as the country begins to emerge from the Covid-19 pandemic, unlocking the potential of our high street businesses to return to growth and job creation.”
Dugher has called for an extension of business relief rates for another year, to reduce the pressure on betting shops and casinos as well as an end for the 10 p.m. curfew once casinos and hotels reopen May 17.
“With premises shut for much of the past year, this would help protect jobs and remove a major financial pressure on businesses that have suffered a significant loss of income during the pandemic,” he said.
Dugher said the U.K. backing for business contrasts with the refusal of the administrations in Wales and Scotland to offer relief to businesses.
“The extension of the furlough scheme and new grants for businesses are strongly welcomed by the tens of thousands of people who work in high street betting shops and land-based casinos. Without the continued support from the Chancellor, many of these businesses would have struggled to survive,” Dugher said.
Sunak has asked for an increase in taxes on corporate profits from 19 to 25 percent by April 2023. However, rates would be kept at 19 percent for companies with profits below £50,000.
Citing 2020, where gross gambling yield fell by £1.6 billion, as well as the review of the 2005 Gambling Act, the BGC has called for “a period of stability and certainty.”
