UK Government Embarrassed By Tax Row Over Gambling Bill

by Robin Pilgrim, LawAndTax-News.com, London

26 October 2004

The UK Times has revealed apparent divisions within the cabinet regarding the recently unveiled Gambling Bill, which opens the way for the creation of super-casinos in the United Kingdom.

On Monday, the newspaper reported that owners of large US casinos looking to locate in the UK had been promised that the tax on gaming would be cut from 40% to between 15% and 20%, but that Chancellor Gordon Brown was unaware that such an offer had been made.

"Yesterday it emerged that Mr Brown is one of at least three senior ministers unhappy about parts of the Bill, which is expected to lead to a dramatic expansion in the size and number of casinos," the Times report announced, going on to add that:

"The revelation that non-Treasury officials had been discussing a more generous tax regime has caused anger in the Treasury, where officials said no one had the authority to make statements on the Bill's revenue implications."

The waters have been further muddied by the fact that Culture Secretary Tessa Jowell told Labour MPs that the Bill was expected to be "revenue neutral".

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