Government rejects calls for end of double taxation on bingo.

Two days previously Gerry Sutcliffe, the minister for the Culture Department responsible for gambling, dropped hints that he was "considering helping the bingo industry" it was reported in The Times. He hinted that plans were afoot to increase the number of high jackpot slot machines allowed in bingo clubs.

The Bingo Association were told by Mr Sutcliffe that he planned to issue a statement to the House of Commons shortly saying "I think it is fair to say that the Prime Minister is sympathetic to bingo - and recognises the role of bingo halls in supporting their local communities"

Bingo Operators countrywide have on numerous occasions warned the Government that the double taxation levied against bingo, the only part of the gambling industry that is double taxed, would mean further closures of bingo halls who are already struggling after the introduction of the smoking ban.

The bingo industry has had their fingers crossed that the Chancellor would remove the double taxation, VAT at 17.5 per cent and then 15 per cent of gross profits, but alas it is not to be. Mr Darling, after annoucing the decsion was accused of "slapping the bingo industry in the face."

The formal response from 10 Downing Street was that it had given serious consideration to the points raised by the bingo industry. However, our assessment remains that tax is not at the root of the bingo industry's problems and we do not believe there is a tax solution. Bingo benefited from a reduction in its effective tax rate in 2003 and the average effective tax rate on bingo, which measures the combined impact of VAT and duty on a comparable basis, is in line with that on casinos, machines and the lottery. Removing VAT on bingo would cost tens of millions - money that would have to be recouped from somewhere else."

On bingo executive said that the claim that bingo was subject to "similar" tax as other gamling industries was "laughable". This news will no doubt affect the big bingo operator, Rank, owners of Gala Bingo and Mecca Bingo.