BGC call for government support during Coronavirus crisis
BGC members which include betting shops, online betting, gaming and casinos directly employ more than 70,000 people across the UK and our industry contributed some £3.2 billion in taxes last year.
The safety of the public and staff remains the top priority for everyone involved in the betting and gaming industry during this unprecedented health emergency and with this there is an unprecedented financial pressure on employers.
The BGC has widely consulted its members on the impact of the restrictions being put in place to help tackle COVID-19.
The most immediate priority for emergency assistance is with employment costs. Time to pay on Pay As You Earn (PAYE) and National Insurance Contributions (NIC) liabilities should also be introduced along side temporary suspension to consultation periods if the permanent workforce is to be flexed speedily enough in line with attendances to ensure business continuity. Business rates relief and time to pay on duties and corporation tax should also be introduced.
The BGC have also highlighted the model of support introduced in other countries. In Spain, temporary government support is provided where 70% of payroll is covered by the government; France has unveiled a plan to guarantee €300bn of loans to support businesses through the disruption and Denmark has announced a deal with employers that will see the state pay 75 per cent of the wages of staff at risk of redundancy during the outbreak for the next three months.
The BGC are also calling for banks to extend existing SME support on interest suspension and repayment holidays.
The BGC has called for reform of business rates in their budget submission, including changing the rules to allow more small businesses to take advantage of the small business retail rate relief. However, the crisis facing businesses has dramatically worsened in past few days with increasing restrictions on the movement of people and the cancellation of sporting events.
Michael Dugher, BGC chief executive said: “We face an unprecedented challenge to keep both customers and staff safe during the COVID-19 health crisis.
“Like all other parts of the hospitality, leisure and entertainment industries, the immediate priority for the future of our members in the casino, bingo and betting industry is the ability to pay staff. We urgently need temporary government support to help cover payroll costs, relief and time to pay duties and taxes, as well as access to finance. Treasury in particular need to step up and understand that insurance simply doesn’t cover the impact of a pandemic.
“We are speaking with the Government to ensure they are fully aware of the crisis facing our members and discussing the steps necessary to help the leisure industry and their staff through this incredibly challenging period.
“This is a national emergency. The Government’s public health response has to be matched in scale by emergency help for businesses and employees. The Treasury cannot let people in the hospitality, leisure and entertainment hang out to dry”.