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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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Gambling Review ready for release?

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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Bread producers Hovis and Kingsmill close in on historic merger

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Bread producers Hovis and Kingsmill close in on historic merger

The owners of Hovis and Kingsmill are closing in on a definitive agreement to merge two of Britain’s most famous grocery brands following months of talks.

Sky News has learnt Associated British Foods (ABF), the London-listed company which owns Kingsmill’s immediate parent, Allied Bakeries, has proposed paying roughly £75m to acquire Hovis from its long-term private equity backers.

Banking sources said a deal could be formally agreed to combine the businesses as early as the end of next week, although they cautioned the complexity of the transaction meant the timing could yet slip.

Confirmation of a tie-up would come nearly three months after Sky News revealed ABF and Endless – Hovis’s owner since 2020 – were in discussions.

Industry sources have estimated that a combined group could benefit from up to £50m of annual cost savings from a merger.

ABF has also been exploring options for the future of Allied Bakeries separate from its talks with Hovis in the event a deal could not be agreed or is prevented from completing by competition regulators.

If it does go ahead, the merger will unite two historic bread producers under common ownership, with Allied Bakeries having been founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF.

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Hovis traces its history back even further, having been created in 1890 when Herbert Grime scooped a £25 prize for coming up with the name Hovis, which was derived from the Latin ‘Hominis Vis’ – meaning “strength of man”.

Persistent inflation, competition from speciality bread producers and shifting consumer habits towards lower-carb diets have combined to impair breadmakers’ financial health in recent decades, however.

In accounts filed at Companies House earlier this month, Hovis said it had “achieved positive financial progress despite continued tough trading conditions”.

The company reported sales of £439.6m in the 52 weeks to 28 September last year, down from £477.6m in the 53 weeks to 30 September 2023.

Earnings before interest, tax, depreciation and amortisation fell from £20.9m to £18.7m, which Hovis said was the result of the revenue decline and higher distribution costs.

“Overall bread share remained stable, despite significant price inflation and the ongoing cost-of-living crisis, demonstrating the resilience of the Hovis brand and its iconic status as one of Britain’s most loved food brands,” the accounts said.

This week, the trade publication The Grocer reported that Britain’s big four supermarkets, including Asda and Sainsbury’s, had delisted a number of Hovis-branded products.

The publication quoted a Hovis spokeswoman as saying the company was “aware of some adjustments to Hovis product lines in certain stores”.

“We remain fully committed to working collaboratively with our retail partners to grow our mutual businesses.”

The overall UK bakery market is estimated to be worth about £5bn in annual sales, with the equivalent of 11m loaves being sold each day.

Critical to the prospects of a merger of Allied Bakeries, which also owns the Sunblest and Allinson’s bread brands, and Hovis taking place will be the view of the Competition and Markets Authority (CMA) at a time when economic regulators are under intense pressure from the government to support growth.

Warburtons, the family-owned business which is the largest bakery group in Britain, is estimated to have a 34% share of the branded wrapped sliced bread sector, with Hovis on 24% and Allied on 17%, according to industry insiders.

A merger of Hovis and Kingsmill would give the combined group the largest share of that segment of the market, although one source said Warburtons’ overall turnover would remain higher because of the breadth of its product range.

Responding to Sky News’ report in May of the talks, ABF said: “Allied Bakeries continues to face a very challenging market.

“We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value.”

In a separate presentation to analysts, ABF – which is also in the process of closing its Vivergo bioethanol plant in Hull after pleading for government support – described the losses at Allied, which also owns own-label bread manufacturer Speedibake, as unsustainable.

The company does not disclose details of Allied Bakeries’ financial performance.

Prior to its ownership by Endless, Hovis was owned by Mr Kipling-maker Premier Foods and the Gores family.

At the time of the most recent takeover, High Wycombe-based Hovis employed about 2,700 people and operated eight bakery sites, as well as its own flour mill.

Hovis’s current chief executive, Jon Jenkins, is a former boss of Allied Milling and Baking.

This weekend, ABF declined to comment, while Endless could not be reached for comment.

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Good economic news as sunny weather boosted retail sales

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Good economic news as sunny weather boosted retail sales

Retail sales grew in June as warm weather boosted spending and day trips, official figures show.

Spending on goods such as food, clothes and household items rose 0.9%, the Office for National Statistics (ONS) said.

It’s a bounce back from the 2.8% dip in May, but last month’s figure was below economists’ forecast 1.2% uplift as consumers dealt with higher prices from increased inflation.

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Also weighing on spending was reduced consumer confidence amid talk of higher taxes, according to a closely watched indicator from market research firm GfK.

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

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What does ‘inflation is rising’ mean?

Where have people been shopping?

June’s retail sales rise came as people bought more in supermarkets, and retailers said drinks sales were up.

While hot and sunny weather boosted some brick-and-mortar shops, the heat led some to head online.

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Non-store retailers, which include mainly online shops, but also market stalls, had sold the most in more than three years.

Not since February 2022 had sales been so high as the Met Office said England had its warmest ever June, and the second warmest for the UK as a whole.

The June increases suggest that the May drop was a bump in the road. When looked at as a whole, the first six months of the year saw retail sales up 1.7%.

Filling up the car for day trips to take advantage of the sun played an important role in the retail sales growth.

When fuel is excluded, the rise was smaller, just 0.6%.

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Despite lower consumer sentiment and more expensive goods, consumers are benefitting from rising wages and are cutting back on savings.

The ONS lifestyle survey – backed up by hard data like the Bank of England’s money and credit figures – shows that households have rebuilt their rainy day savings and are cutting back on the amount of money they squirrel away each month.

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Former Poundland owner lines up advisers as restructuring looms

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Former Poundland owner lines up advisers as restructuring looms

The former owner of Poundland is lining up advisers to supervise its transition to new shareholders through a court-sanctioned process that will involve store closures and job cuts at the discount retailer.

Sky News has learnt that Pepco Group, which is listed on the Warsaw Stock Exchange, is drafting in FRP Advisory weeks after it struck a deal to sell Poundland to Gordon Brothers.

Industry sources said FRP had been asked by Pepco to act as an observer, with the High Court scheduled to sanction a restructuring plan in the last week of August.

Under the proposed deal, 68 Poundland shops would close in the short term, along with two distribution centres.

More shops are expected to be shut under Gordon Brothers over time, resulting in hundreds of job losses.

Pepco is said to be particularly focused on IT systems which Poundland uses in common with Pepco’s operations in Poland.

Barry Williams, managing director of Poundland, said at the time of the deal’s announcement: “It’s no secret that we have much work to do to get Poundland back on track.

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“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.

Prior to the deal’s announcement, Poundland employed roughly 16,000 people across an estate of over 800 shops in the UK and Ireland.

Tax hikes announced by Rachel Reeves, the chancellor, in last autumn’s Budget have increased the financial pressure on high street retailers.

In recent months, chains including WH Smith, Lakeland and The Original Factory Shop have changed hands amid challenging circumstances.

In June, Sky News revealed that River Island, the family-owned clothing retailer, was also working with advisers on a rescue plan aimed at averting its collapse.

Pepco and Poundland declined to comment.

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