BACTA's Reaction to the Autumn Budget 2024: BACTA offers their response to the financial plan presented in the Autumn Budget for the year 2024, speaking on its potential effects and implications for the amusement and gaming sector.
In the recently announced Autumn Budget 2024, the Government has proposed a 6.7% increase in the National Minimum Wage, while maintaining the current rate for Machine Games Duty (MGD). This move has been met with mixed reactions, particularly within the leisure and amusement sectors, where the British Amusement Catering Trade Association (Bacta) has expressed both relief and concern.
John Bollom, President of Bacta, has been vocal about the potential impact of business cost increases on operators within the sector. He stated that the first Budget of the Labour Government has profound implications for their industry, with rises in Employers' National Insurance contributions and the National Minimum Wage posing significant challenges. These increases could potentially strain staffing costs and overall operational expenses, potentially impacting the viability and growth of businesses within the industry.
However, Bacta's relentless campaigning seems to have borne fruit, as the Chancellor's decision not to increase MGD was a result of Bacta's representations. Bacta had been deeply concerned about the potential hikes in the costs of doing business, and Bollom himself lobbied the Treasury, 10 Downing Street, the Opposition front bench, and MPs from across the political spectrum to prevent a doubling of MGD, a move that could have had dire consequences for Bacta members, potentially wiping out profit margins across the sector.
The campaign was widely reported in national newspapers such as The Sun, The Telegraph, and The Daily Express. John Bollom, who is the named individual in the image provided, expressed relief at the freeze on MGD, stating that this decision will help maintain the financial stability of businesses within the sector.
The Budget also includes proposals to increase the cost of doing business, with Employers' National Insurance contributions set to rise to 15%. Bacta is urging the Government to push ahead with Gambling White paper reforms and to permit a Stakes and Prizes review as soon as possible to help mitigate these increases.
Despite the Chancellor's stated goal for the Budget being growth, the proposals could potentially punish businesses, taking them to the breaking point. For further information, contact George McGregor, Bacta Executive Director (Government Relations) at [email protected] or 07976 754 420.
In the context of the Autumn Budget 2024, John Bollom, President of Bacta, highlighted that the increases in Employers' National Insurance contributions and the National Minimum Wage could pose significant challenges for businesses in the leisure and amusement sectors, potentially straining staffing costs and overall operational expenses. Moreover, Bacta continues to advocate for the Gambling White paper reforms and a Stakes and Prizes review to help alleviate these pressures on the industry's financial stability.
