Posted on: August 5, 2020 Posted by: Spectator Team Comments: 0

The Spectator Explainer

The LPUK has pledged to abolish DCMS, attracting widespread criticism due to the funds of local charities via the national lottery grant. National lottery revenue is split into multiple parts. 53% goes to the prize fund, 4% goes to retailers as commission and 5% goes to goes to the private operator, Camelot, 4% to cover operating costs and 1% as profits.

The remaining 37% is what is of interest. 25% goes to “good causes” decided by parliament, which has been the centre of the controversy. The last 12% is folded into government funds as part of the lottery duty. A LPUK peer has described this as government “siphoning off 12%” for themselves.

In a regional debate greejatus, the LPUK peer in question, stated that he would ensure the 25% was kept by camelot to maintain local charity funding, as well as move the 12% normally held by government to Camelot as well. This was confirmed by LPUK deputy leader Tarkin. This is in stark contrast to Friedmanite’s plans to abolish it entirely, and keep all 37% of the funds for other LPUK spending plans.

Currently the 25% grant to good causes is at £1.8bn, making the full 37% £2.6bn. This £2.6bn revenue cut is not noted in the LPUK manifesto, causing a blackhole into Fried’s costings.

The manifesto currently keeps the £2.6bn in revenue for other pledges such as tax cuts and spending, in contrast to LPUK frontbenchers saying the revenue will still go to charities. There has been no indication anywhere in the manifesto that the £2.6bn would still go to charities, with the costings sheet gobbling up the entire DCMS budget (of which £1.8bn is included for lottery grants) into expenditure; and no mention of the rest of revenue (the 12% lottery duty) being lost anywhere.

Could LPUK plug the hole by raising VAT on blankets and hot drinks?

Open rebellion

This comes just a day after BigTrev-98 said they would oppose DCMS abolition entirely, and stated they would rather raise taxes more than the £750 extra the average home owner already has to pay. With a frontbencher and a deputy leader joining the rebal ranks against fried’s DCMS plans BigTrev-98 may well get their way.

Friedmanite19 has double-downed in the leaders debate, specifically saying that the national lottery funding would be abolished. Could the new rebel ranks force a u-turn on him, creating a £2.6bn blackhole, or can Friedmanite19 face them down and get them to reverse their position? Only time will tell.

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Spectator Team

Spectator Team