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The government has announced a raft of gambling reforms, including a new statutory levy on big firms, in a bid to crack down on online addiction.

Other measures announced by Culture Secretary Lucy Frazer include maximum stakes for online slot machines and checks to “better protect even those unable to afford small losses”.

What do the plans include?

• Statutory gambling levy – ensuring operators help fund treatment services and research. As things are, the amount given is not mandated and some betting firms have paid as little as £1

• New stake limits for online slot games – it will be between £2 and £15 per spin but there will be a consultation on measures to protect 18 to 24-year-olds

• Player protection checks – to safeguard those most at risk of harm before unaffordable losses are incurred

• Further Gambling Commission powers – so the regulator can tackle black market operators through court orders and with internet service providers

• Bonus offer rules – to stop them harming vulnerable people. How free bets are constructed are to be looked at and targeted

• Loopholes closed for under 18s – to ensure they cannot gamble online or through cash fruit machines

• New industry ombudsman – to deal with disputes and rule on redress where people suffer losses due to operator failings to protect players

However, a ban on gambling advertising is not included in the measures – despite the Premier League already announcing a voluntary ban on it on football shirts.

The reforms are formally set out in the government’s gambling white paper published today following a series of delays.

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UK bookmakers have already started to put estimates on the revenue hit they are likely to face.

Flutter Entertainment, which includes the Paddy Power and Betfair brands and has welcomed the planned shake-up, said its current view was a gross impact of between £50m-£100m per year.

Outlining the government’s plans in the Commons, Ms Frazer said the white paper will “force companies to step up their checks” to protect vulnerable customers.

She told MPs: “When gambling becomes addiction, it can wreck lives. Shattered families, lost jobs, foreclosed homes, jail time, suicide.

“Gambling problems in adults have always been measured in terms of money lost, but you cannot put a cost on the loss of dignity, the loss of identity, and, in some cases, the loss of life that it can cause.”

Ms Frazer said the white paper would cover six areas of reform, including affordability checks “when losses are likely to be unaffordable or harmful for punters”.

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She also touched on advertising, which she said saw punters “drawn back into the orbit of online companies with the offer of a free bet or some free spins”.

“So, to help stop problem gamblers being bombarded, the Gambling Commission has beefed up its rules on online VIP schemes, already resulting in a 90% reduction in these schemes, and it will now consult on making sure bonus offers are not being deployed in ways which only exacerbate harm,” she said.

Responding for Labour in the Commons, shadow minister Alex Davies-Jones branded the white paper “very light in substance” while also criticising the delay to its publication.

She said Labour “welcomes many of the measures in the announcement” and said it was a “move in the right direction”.

However, she criticised the fact that the Premier League had voluntarily decided to ban gambling sponsorship only on the front of football shirts and argued that the measure was “weak” because it won’t come into effect for three years.

She also called for clarity on the proposed levy on gambling firms and the beefing up of the gambling regulator, adding that it was “vital that affordability checks are set independently from the industry” to ensure the safety of customers.

Former Tory leader Iain Duncan Smith welcomed the white paper but said it did not go far enough to protect children from advertising.

The government has been under pressure to act following a number of cases in which people have taken their own lives over their addiction to gambling.

According to the Gambling Commission, around 138,000 people could be problem gambler, with around 1.3 million people engaging in either moderate or low-risk gambling.

Last year, the parents of Jack Ritchie, 24, accused the government of being “asleep at the wheel” in their failure to regulate an industry they described as “predatory” and “parasitic”.

A landmark inquest into the suicide of Mr Ritchie found that regulation, NHS treatment and government warnings about the dangers of gambling were “woefully inadequate”.

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The inquest in Sheffield was the first of its kind to examine the link between suicide and gambling and the way it is regulated.

Gambling With Lives, a charity that was set up by families bereaved by gambling-related suicide, said ahead of the report’s publication: “We’ll welcome any positives in today’s white paper, but it seems much will be pushed to consultation, meaning more delay.

“We’ve waited years, more than 1,000 people have died while the industry has made billions in profit from harm. We need action now to stop the deaths.

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New figures show the NHS received 990 referrals for treatment between April and December 2022, compared with 668 the same period the previous year.

NHS mental health director Claire Murdoch said she was “delighted that the government has committed to tackling this cruel disease”.

Peter Jackson, chief executive of Flutter Entertainment plc, said welcomed the white paper and said it was a “significant moment” for the sector.

He added: “Whilst we will need to review the detail of the proposals once published, we believe proactive change will lead to a better future for our industry.”

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK

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Bank chiefs to Reeves: Ditch ring-fencing to boost UK economy

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Bank chiefs to Reeves: Ditch ring-fencing to boost UK economy

The bosses of four of Britain’s biggest banks are secretly urging the chancellor to ditch the most significant regulatory change imposed after the 2008 financial crisis, warning her its continued imposition is inhibiting UK economic growth.

Sky News has obtained an explosive letter sent this week by the chief executives of HSBC Holdings, Lloyds Banking Group, NatWest Group and Santander UK in which they argue that bank ring-fencing “is not only a drag on banks’ ability to support business and the economy, but is now redundant”.

The CEOs’ letter represents an unprecedented intervention by most of the UK’s major lenders to abolish a reform which cost them billions of pounds to implement and which was designed to make the banking system safer by separating groups’ high street retail operations from their riskier wholesale and investment banking activities.

Their request to Rachel Reeves, the chancellor, to abandon ring-fencing 15 years after it was conceived will be seen as a direct challenge to the government to take drastic action to support the economy during a period when it is forcing economic regulators to scrap red tape.

It will, however, ignite controversy among those who believe that ditching the UK’s most radical post-crisis reform risks exacerbating the consequences of any future banking industry meltdown.

In their letter to the chancellor, the quartet of bank chiefs told Ms Reeves that: “With global economic headwinds, it is crucial that, in support of its Industrial Strategy, the government’s Financial Services Growth and Competitiveness Strategy removes unnecessary constraints on the ability of UK banks to support businesses across the economy and sends the clearest possible signal to investors in the UK of your commitment to reform.

“While we welcomed the recent technical adjustments to the ring-fencing regime, we believe it is now imperative to go further.

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“Removing the ring-fencing regime is, we believe, among the most significant steps the government could take to ensure the prudential framework maximises the banking sector’s ability to support UK businesses and promote economic growth.”

Work on the letter is said to have been led by HSBC, whose new chief executive, Georges Elhedery, is among the signatories.

His counterparts at Lloyds, Charlie Nunn; NatWest’s Paul Thwaite; and Mike Regnier, who runs Santander UK, also signed it.

While Mr Thwaite in particular has been public in questioning the continued need for ring-fencing, the letter – sent on Tuesday – is the first time that such a collective argument has been put so forcefully.

The only notable absentee from the signatories is CS Venkatakrishnan, the Barclays chief executive, although he has publicly said in the past that ring-fencing is not a major financial headache for his bank.

Other industry executives have expressed scepticism about that stance given that ring-fencing’s origination was largely viewed as being an attempt to solve the conundrum posed by Barclays’ vast investment banking operations.

The introduction of ring-fencing forced UK-based lenders with a deposit base of at least £25bn to segregate their retail and investment banking arms, supposedly making them easier to manage in the event that one part of the business faced insolvency.

Banks spent billions of pounds designing and setting up their ring-fenced entities, with separate boards of directors appointed to each division.

More recently, the Treasury has moved to increase the deposit threshold from £25bn to £35bn, amid pressure from a number of faster-growing banks.

Sam Woods, the current chief executive of the main banking regulator, the Prudential Regulation Authority, was involved in formulating proposals published by the Sir John Vickers-led Independent Commission on Banking in 2011.

Legislation to establish ring-fencing was passed in the Financial Services Reform (Banking) Act 2013, and the regime came into effect in 2019.

In addition to ring-fencing, banks were forced to substantially increase the amount and quality of capital they held as a risk buffer, while they were also instructed to create so-called ‘living wills’ in the event that they ran into financial trouble.

The chancellor has repeatedly spoken of the need to regulate for growth rather than risk – a phrase the four banks hope will now persuade her to abandon ring-fencing.

Britain is the only major economy to have adopted such an approach to regulating its banking industry – a fact which the four bank chiefs say is now undermining UK competitiveness.

“Ring-fencing imposes significant and often overlooked costs on businesses, including SMEs, by exposing them to banking constraints not experienced by their international competitors, making it harder for them to scale and compete,” the letter said.

“Lending decisions and pricing are distorted as the considerable liquidity trapped inside the ring-fence can only be used for limited purposes.

“Corporate customers whose financial needs become more complex as they grow larger, more sophisticated, or engage in international trade, are adversely affected given the limits on services ring-fenced banks can provide.

“Removing ring-fencing would eliminate these cliff-edge effects and allow firms to obtain the full suite of products and services from a single bank, reducing administrative costs”.

In recent months, doubts have resurfaced about the commitment of Spanish banking giant Santander to its UK operations amid complaints about the costs of regulation and supervision.

The UK’s fifth-largest high street lender held tentative conversations about a sale to either Barclays or NatWest, although they did not progress to a formal stage.

HSBC, meanwhile, is particularly restless about the impact of ring-fencing on its business, given its sprawling international footprint.

“There has been a material decline in UK wholesale banking since ring-fencing was introduced, to the detriment of British businesses and the perception of the UK as an internationally orientated economy with a global financial centre,” the letter said.

“The regime causes capital inefficiencies and traps liquidity, preventing it from being deployed efficiently across Group entities.”

The four bosses called on Ms Reeves to use this summer’s Mansion House dinner – the City’s annual set-piece event – to deliver “a clear statement of intent…to abolish ring-fencing during this Parliament”.

Doing so, they argued, would “demonstrate the government’s determination to do what it takes to promote growth and send the strongest possible signal to investors of your commitment to the City and to strengthen the UK’s position as a leading international financial centre”.

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Post Office to unveil £1.75bn banking deal with big British lenders

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Post Office to unveil £1.75bn banking deal with big British lenders

The Post Office will next week unveil a £1.75bn deal with dozens of banks which will allow their customers to continue using Britain’s biggest retail network.

Sky News has learnt the next Post Office banking framework will be launched next Wednesday, with an agreement that will deliver an additional £500m to the government-owned company.

Banking industry sources said on Friday the deal would be worth roughly £350m annually to the Post Office – an uplift from the existing £250m-a-year deal, which expires at the end of the year.

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The sources added that in return for the additional payments, the Post Office would make a range of commitments to improving the service it provides to banks’ customers who use its branches.

Banks which participate in the arrangements include Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander UK.

Under the Banking Framework Agreement, the 30 banks and mutuals’ customers can access the Post Office’s 11,500 branches for a range of services, including depositing and withdrawing cash.

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The service is particularly valuable to those who still rely on physical cash after a decade in which well over 6,000 bank branches have been closed across Britain.

In 2023, more than £10bn worth of cash was withdrawn over the counter and £29bn in cash was deposited over the counter, the Post Office said last year.

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A new, longer-term deal with the banks comes at a critical time for the Post Office, which is trying to secure government funding to bolster the pay of thousands of sub-postmasters.

Reliant on an annual government subsidy, the reputation of the network’s previous management team was left in tatters by the Horizon IT scandal and the wrongful conviction of hundreds of sub-postmasters.

A Post Office spokesperson declined to comment ahead of next week’s announcement.

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Trump trade war: How UK figures show his tariff argument doesn’t add up

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Trump trade war: How UK figures show his tariff argument doesn't add up

As Chancellor Rachel Reeves meets her counterpart, US Treasury secretary Scott Bessent to discuss an “economic agreement” between the two countries, the latest trade figures confirm three realities that ought to shape negotiations.

The first is that the US remains a vital customer for UK businesses, the largest single-nation export market for British goods and the third-largest import partner, critical to the UK automotive industry, already landed with a 25% tariff, and pharmaceuticals, which might yet be.

In 2024 the US was the UK’s largest export market for cars, worth £9bn to companies including Jaguar Land Rover, Bentley and Aston Martin, and accounting for more than 27% of UK automotive exports.

Little wonder the domestic industry fears a heavy and immediate impact on sales and jobs should tariffs remain.

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American car exports to the UK by contrast are worth just £1bn, which may explain why the chancellor may be willing to lower the current tariff of 10% to 2.5%.

For UK medicines and pharmaceutical producers meanwhile, the US was a more than £6bn market in 2024. Currently exempt from tariffs, while Mr Trump and his advisors think about how to treat an industry he has long-criticised for high prices, it remains vulnerable.

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The second point is that the US is even more important for the services industry. British exports of consultancy, PR, financial and other professional services to America were worth £131bn last year.

That’s more than double the total value of the goods traded in the same direction, but mercifully services are much harder to hammer with the blunt tool of tariffs, though not immune from regulation and other “non-tariff barriers”.

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The third point is that, had Donald Trump stuck to his initial rationale for tariffs, UK exporters should not be facing a penny of extra cost for doing business with the US.

The president says he slapped blanket tariffs on every nation bar Russia to “rebalance” the US economy and reverse goods trade ‘deficits’ – in which the US imports more than it exports to a given country.

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That heavily contested argument might apply to Mexico, Canada, China and many other manufacturing nations, but it does not meaningfully apply to Britain.

Figures from the Office for National Statistics show the US ran a small goods trade deficit with the UK in 2024 of £2.2bn, importing £59.3bn of goods against exports of £57.1bn.

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Add in services trade, in which the UK exports more than double what it imports from the US, and the UK’s surplus – and thus the US ‘deficit’ – swells to nearly £78bn.

That might be a problem were it not for the US’ own accounts of the goods and services trade with Britain, which it says actually show a $15bn (£11.8bn) surplus with the UK.

You might think that they cannot both be right, but the ONS disagrees. The disparity is caused by the way the US Bureau of Economic Analysis accounts for services, as well as a range of statistical assumptions.

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“The presence of trade asymmetries does not indicate that either country is inaccurate in their estimation,” the ONS said.

That might be encouraging had Mr Trump not ignored his own arguments and landed the UK, like everyone else in the world, with a blanket 10% tariff on all goods.

Trade agreements are notoriously complex, protracted affairs, which helps explain why after nine years of trying the UK still has not got one with the US, and the Brexit deal it did with the EU against a self-imposed deadline has been proved highly disadvantageous.

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