To ask the Chancellor of the Exchequer what methodology was used to calculate the figure of £50 million estimated revenue lost to the Exchequer by the removal of value added tax on bingo participation fees in the 2009 Budget. (274772)

The estimated revenue impact of £50 million in the 2009 Budget Redbook relates to the cost of VAT exemption for both bingo and player-to-player gaming in casinos in 2009-10. Our estimate of the cost of removing VAT on bingo participation fees has been calculated using a methodology that is consistent with other costings of policy changes on tax. It uses information from the bingo industry, bingo duty receipts and takes account of behavioural effects.