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  • 📈 Gambling Giants Hit with £100m Jackpot Tax

📈 Gambling Giants Hit with £100m Jackpot Tax

Co-op Bank’s £90m Dividend: Cheers, Investors!

November 26, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Gambling Giants Hit with £100m Jackpot Tax

  • Co-op Bank’s £90m Dividend: Cheers, Investors!

  • Labour Unveils £240m Jobcentre Overhaul Plan

The summary: Britain’s gambling industry is set to ante up £100m a year to tackle gambling harms, funding vital NHS clinics and charities, as the government swaps half-measures for a game-changing statutory levy.

The details:

  • The Jackpot Tax: Casinos and bookmakers must cough up £100m annually for gambling harm prevention starting next April, marking the end of the industry's pick-your-own-donation scheme.

  • Winners and Losers: The 1% levy on gross gambling yields means big bucks from online giants, but land-based operators like high street bookies get a 0.4% discount due to heftier overheads.

  • Raising the Stakes: Funds will bankroll NHS addiction clinics, school education programs, and support charities, though a tussle looms between GambleAware and the Office for Health Improvement over who gets the lion's share.

  • Betting on Change: The Betting & Gaming Council flip-flops on the levy, now cautiously backing it – but not without grumbles over costs for smaller, bricks-and-mortar businesses.

Why it matters: Britain’s gambling giants are finally being held to account for the havoc they wreak, swapping token gestures for a proper £100m annual payout. The funds promise real change, funding NHS clinics and grassroots efforts to tackle addiction—though the squabble over who gets the cash could prove a spectacle of its own. For an industry that’s been winning big for years, it’s high time they paid the house.

The summary: Co-op Bank is thriving with rising lending, loyal customers, and a £90m dividend payout, all while gearing up for a return to mutual ownership in 2025—proof that patience and progress go hand in hand!

The details:

  • Profitable Progress: Co-op Bank is back on form with a 16% jump in SME lending, 2% mortgage growth, and a tidy 1% rise in customer deposits during Q3.

  • Mutual Comeback: The 152-year-old lender is prepping for a return to mutual ownership in 2025, with Coventry Building Society snapping it up for £780m.

  • Investor Cheers: Shareholders are cashing in on a £90m dividend payout as the bank's turnaround strategy pays off.

  • Switching Success: Customer loyalty is on the rise, with current account defections down 70%, marking a potential net positive switch position for the first time in years.

Why it matters: Co-op Bank’s revival shows how resilience and a bit of old-school charm can turn around a 152-year-old institution, even in today’s cutthroat financial climate. Its pending return to mutual ownership hints at a trend of sticking to values while keeping the tills ringing. Meanwhile, with loyal customers staying put and investors pocketing dividends, it’s proof that even in banking, patience can pay off—literally.

The summary: Labour's reform plans focus on improving Jobcentres, tackling health-related barriers to work, and investing in localised schemes to reduce economic inactivity and support youth employment, while addressing challenges around trust and effective implementation.

The details:

  • The Labour government’s "Get Britain Working Again" plan focuses on reforming Jobcentres, potentially rebranding them as a national jobs and careers service, with £55m earmarked for the transition.

  • Tackling unemployment and inactivity is a priority, with health issues identified as a major barrier to work, prompting the government to invest £22.6bn in clearing NHS backlogs to help people return to work.

  • A £240m reform package includes £125m for localised support in eight regions, plus £45m for youth employment schemes, including a "youth guarantee" offering apprenticeships or job support for 18-21-year-olds.

  • The plan aims to move away from the "blame and shame" culture, with critics calling for investment in health services and training, and addressing the trust issues between disabled people and the Department for Work and Pensions.

Why it matters: Labour’s reform plans aim to reduce the burden of welfare spending by getting more people into work, with a focus on improving Jobcentres and tackling health-related barriers to employment. By investing in localised schemes and supporting young people, the government hopes to create more job opportunities and address economic inactivity. However, challenges remain, including ensuring effective implementation and building trust, particularly within the disabled community and over NHS backlogs.