Philip Davies (Shipley, Conservative)

If he will bring forward proposals to reduce the level of taxation applied to the bingo industry.

Sarah McCarthy-Fry (Parliamentary Secretary, HM Treasury; Portsmouth North, Labour)

We have had continued dialogue with the bingo industry, including before and since the Budget, on the impact of the tax regime. I last met the industry just three weeks ago, and that dialogue will continue. However, I am sure that the hon. Gentleman is aware that tax policy decisions are taken and announced in Budgets and pre-Budget reports.

Philip Davies (Shipley, Conservative)

The Government have increased the taxation on bingo to 22 per cent., whereas tax on other forms of gambling is 15 per cent. Bingo plays an important part in local communities, but many clubs are shutting up and down the country. What have this Government got against bingo?

Sarah McCarthy-Fry (Parliamentary Secretary, HM Treasury; Portsmouth North, Labour)

I can assure the hon. Gentleman that we value the bingo industry and recognise the important part that it plays in the community. I would remind him that 22 per cent. is the average across the gambling industry, that the effective tax rate in 2003 was 35 per cent. and that, on the information that the bingo industry gave us before the Budget, the effective tax rate was 24 to 25 per cent.

Kelvin Hopkins (Luton North, Labour)

I have raised this with my hon. Friends on the Front Bench before, but is it not more sensible to tax the more dangerous forms of gambling more than the innocent forms, such as bingo?

Sarah McCarthy-Fry (Parliamentary Secretary, HM Treasury; Portsmouth North, Labour)

I do not think that we are in the business of grading types of gambling. As I have said, we recognise the important part that bingo clubs play in the community, and all these things are taken into account when such decisions are made.

Greg Hands (Shadow Minister, Treasury; Hammersmith & Fulham, Conservative)

When the Finance Bill went through, we were told that the overall tax burden on bingo would not rise. The industry disagreed, and indeed, a report from Ernst and Young that landed with the Minister last month concluded that the tax has actually gone up. When will she finally admit to the House that the Treasury got its sums wrong on bingo?

Sarah McCarthy-Fry (Parliamentary Secretary, HM Treasury; Portsmouth North, Labour)

As I told Philip Davies, I met representatives of the Bingo Association just a few weeks ago, and we discussed the report from Ernst and Young. That report is still with officials, and it is being assessed. As I have said, these decisions are taken in the pre-Budget report and in the Budget, and the information on which we based the Budget decisions last year was based on figures that the Bingo Association gave us. If it is now giving us different figures, it makes sense that we should take our time to assess them.