Deductions may be cut

Betting-shop punters could be in line for a large incentive to bet as bookmakers seek to offset the damage caused by the National Lottery. Bookmakers' representatives yesterday pledged to cut off-course deductions from punters bets to 7.5% from the current rate of 9% - if the Chancellor, Kenneth Clarke, reduces the rate of general betting duty by 1.25% in the Budget on 26 November. A rate of 7.5% would be the lowest for 25 years when betting-shop punters were taxed at just 6%.

The Bookmakers' Committee, which represents 70% of the bookmaking industry, including the big three firms, is to press for action as the result of a study undertaken for them.

"A further 1.25% reduction in the duty is needed to bring the industry back into line with the pre-1994 Lottery position," the committee's vice chairman, John Brown, said. "Should the Chancellor agree to this then we would move immediately to translate that into a 1.5% reduction in the betting tax."