Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)

We turn now to general betting duty and pool betting duty. For about a year and a half now, we have had in place a reformed taxation system based on a new gross profits tax on betting. When we introduced those reforms, they were a radical and bold response to a difficult and rapidly changing competitive environment for our betting industry. They represented a fundamental shift in the approach to taxation in that sector.

We have now completed a review of the reforms and I am happy to be able report that bookmakers, racing representatives, academics and industry observers widely hold them to have been a significant success. John Brown, chairman of William Hill, speaking at the British Horseracing Board annual general meeting last year, said that the implementation of the gross profits tax was

''truly momentous. The significance of which cannot be over estimated. The new tax changes everything—the basis is now fairer, it is set at a sensible rate, and thus enables the bookmaker to stand the tax, without deductions from the punter. It represents forward thinking of the best possible sort''.

I am quoting because I would hesitate to make this claim myself. Mr. Brown continued:

''GPT will prove to be the single most important and influential development in betting and racing in 30 years.''

I shall not embarrass my hon. Friends by citing other commentators who have made similar remarks—

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