To ask the Chancellor of the Exchequer what recent estimate his Department has made of the effect on (a) prize levels, (b) good causes’ revenue and (c) taxation revenue of a change to the taxation regime for the National Lottery from lottery duty to gross profits taxation. (275410)

The Government undertook a detailed assessment of the case for taxing the national lottery on a gross profits tax basis before the 2008 pre-Budget report.

The Government concluded that there was considerable uncertainty over the impact of a switch to a gross profits tax, particularly given the start of the new lottery operating licence in February 2009. The stakes based system of lottery taxation has therefore been retained.