BACTA fears that the chancellor's decision to increase amusement machine licence duty will push the industry into further decline and they urge the Minister to act now.
In the wake of the latest Budget speech, the coin-op business has been left to reflect on the deeper implications of a missed opportunity to help the industry. In his maiden speech the chancellor, Alistair Darling, increased amusement machine licence duty (AMLD) in line with inflation but did not deliver any new measures to aid the business. BACTA feels that this increase in AMLD was a "missed opportunity by government to offer a lifeline to the industry".
BACTA also warned that the gaming machine industry, representing thousands of UK jobs at seaside and inland towns, suppliers to pubs and clubs and manufacturers, faces continued dramatic decline unless government takes immediate measures to mitigate the unintended consequences of the Gambling Act.
The increase on duty on alcohol has also had an effect on the viability of many pubs to stay in business. The British Beer and Pub Association (BBPA) have stated that the pub closure rate of 27 per week is seven times faster than in 2006 and 14 times faster than in 2005. Last year, 1,409 pubs closed, compared to 216 closures in 2006 and 102 in 2005. This number of nearly four closures every day over the past year is blamed on the impact of the smoking ban and spiralling costs which have combined to hit the trade hard. With a lesser number of pubs to supply, this obviously has a major impact on BACTA’s Division 2 members.
BACTA President Nick Harding said "We presented a strong evidence-based submission with a number of simple, fair and inexpensive measures that the government could introduce," he said. "These included: the level of AMLD should be reduced or at least frozen to prevent it having any further detrimental effect on the industry; reform of the payment process for AMLD to allow a rebate of duty paid on unutilised licence periods and an increase in the limit for capital investment allowance for smaller businesses to £500,000."
With no quarter given on any of those submissions, BACTA promises that it will continue to press the industry's case with government. Nick Harding added: "The future of the industry really hangs on whether government will act immediately to halt the dramatic decline that we have seen since the Gambling Act 2005 came into effect in September last year. Simply announcing a review of the situation would fail to recognise the urgency of the position."
To reiterate that urgency, he stated: "Revenues have collapsed by 21 per cent. Amusement arcades are being forced out of business and within six months half the industry could be gone, with the loss of thousands of jobs. This would have a damaging knock-on effect on local economies, particularly in traditional seaside holiday resorts where arcades have been a popular attraction for a hundred years. Thousands of related jobs in the gaming machine manufacturing sector are also at risk. BACTA has made representation over recent months to the Parliamentary under Secretary for Culture, Media and Sport, Gerry Sutcliffe MP and we are anxiously awaiting a response from the Department."
BACTA has, put the industry's plight in stark relief before a government department that still refuses to make a decision on remedial action. When asked for an update on progress, the DCMS said "We are committed to conducting a review of gaming machine stakes and prizes in 2009. That said, we will continue to monitor the situation right across the industry carefully."
For more information please go to www.saveourarcades.com
