In a piece in the New Statesman, the Conservative MP Philip Davies calls for taxes on the betting industry to be cut in order to stop businesses being forced offshore. He wants to see taxes slashed massively from 15% to only 2 or 3%. Davies says:
“…three of the largest betting providers – William Hill, Ladbrokes and Betfair – have moved their online betting facilities offshore… For every £100 profit they make online, they will pay just £1 or £2 in tax offshore, instead of £36 in the UK.”
Except that the March budget switched tax payable from the point of supply to the point of consumption, meaning that tax is paid in the UK regardless – removing any incentive to relocate offshore.
We’re sure that Davies call wouldn’t have anything to do with donations worth thousands of pounds from, erm, Ladbrokes and a group called Peninsula Business Services Ltd. Peninsula, it transpires, is headed by a certain Peter Done, who also just happens to be the co-founder of Betfred.