Charity Lotteries (Sales Cap)

Part of the debate – in the Scottish Parliament am ar 1 Chwefror 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Stephanie Callaghan Stephanie Callaghan Scottish National Party

I, too, am pleased to be contributing today, and I congratulate my colleague Kenneth Gibson on securing the debate and calling for the removal of the annual sales limit in charity lottery fundraising.

The idea that there could be a restriction on funds raised for the betterment of society is a bit baffling. However, under the UK Gambling Act 2005, society lotteries are subject to a maximum sale of £50 million, as we have already heard. The limitation is seemingly in place to uphold their primary purpose and to ensure that their fundamental mission of raising funds for good causes remains intact. However, a striking disparity emerges when we consider that other forms of gambling, particularly those that are deemed harmful, operate freely without similar constraints.

To provide some insight, I note that the Gambling Commission reported that, excluding all the reported lotteries, the gambling industry generated an eye-watering total revenue of £10.9 billion last year; that figure was already cited by Kenneth Gibson, but it is certainly worth repeating. Not only is that gambling revenue amassed by preying on society’s most vulnerable people, but it exacerbates issues such as homelessness, crime, fractured relationships and mental health problems; it even contributes to suicide rates. The impacts are far reaching and profound.

Meanwhile, we impose a £50 million limit on society lotteries from which no private profit is gained and funds instead go towards organisations that diligently work to eliminate some of the very inequalities that gambling supports. That is nothing short of ludicrous.

Faced with the post-pandemic era and the relentless squeeze of the cost of living crisis, charities and voluntary organisations are grappling with the dual challenge of increasing demand while their resources are diminishing. As a result, around half such organisations are struggling to deliver their essential core services. That is outlined in the “Third Sector Tracker Report” by the Scottish Council for Voluntary Organisations. To put it simply, organisations are absolutely crying out for a funding lifeline and, with society lotteries generating an impressive total of £420 million annually and displaying signs of significant growth, they are well placed to provide that essential support.

I, too, welcome to the public gallery the representatives who are here today from the People’s Postcode Lottery, and I thank them for the leading role that they have played in the campaign and for their tireless efforts to remove the absurd upper limit.

Reading the briefing for the debate today, I found it disheartening to learn that, taken over the next five years, the existing cap on annual sales will jeopardise a staggering £175 million in crucial funding for 100 supported charities. It is clearly ridiculous that such a substantial contribution to charities is being seriously hindered by the outdated legislation, especially, as we have already heard, when it would cost the public purse absolutely nothing.

Nevertheless, community grants from the People’s Postcode Lottery of £26,400 have been distributed across my constituency of Uddingston and Bellshill, and that support has translated into tangible benefits for various projects that affect people on the ground. Examples include funding for equipment for the nurture in nature initiative and funding that was awarded to Viewpark Gardens allotment and community gardens, which allowed it to buy a range of seeds, plants, food containers and gardening tools for its grow in the community projects. The funding has been transformational, and my team is happy to encourage and support more local organisations to apply to society lotteries. I am grateful to Paul O’Kane for highlighting Enable Scotland, too.

Although lotteries policy is a reserved matter, I hope that the UK Government is listening closely to today’s debate and the call to remove the charity lottery fundraising cap. The growth of the fantastic organisations in our community and voluntary sector should be celebrated and nourished. We cannot and should not put a limit on social good, and it is time for the UK Government—to use Paul O’Kane’s words—to get a move on and sort it out.