Industry reacts to Liz Truss’ resignation and future of white paper

Unbelievably, 44 days after entering Number 10, Liz Truss has resigned as Prime Minister and set the wheels in motion for a third Conservative Party leader in just four months.

In an astonishing turn of events, Truss initially green lit £45bn of unfunded tax cuts, before sacking her Chancellor Kwasi Kwarteng to replace him with Jeremy Hunt. The move to appease her parliamentary party failed, with Home Secretary Suella Braverman resigning and a host of backbench MPs calling for Truss to step down.

Under immense pressure, Truss spent mere moments at the lectern in Downing Street confirming her resignation, thereby kickstarting yet another leadership contest. A new Prime Minister is expected to be in situ by next week, with Rishi Sunak and Penny Mordaunt the front runners.

In Truss’ short-lived spell as Prime Minster, the white paper into the Gambling Act 2005 was probably not on the top of her agenda. However, hopes that her pro-business, anti-nanny state views could have some impact on the document are now dashed. The white paper remains with Number 10 for final approval after former Gambling Minister Chris Philp delivered it to then Prime Minister Boris Johnson.

A calamitous few months for the Conservative Party has seen swathes of policies put on the backburner, including the white paper. Before Truss’ resignation, Betting and Gaming Council CEO Michael Dugher claimed the government were hoping for a release before Christmas. This now seems highly unlikely.

Liz Truss resigns as prime minister pic.twitter.com/GIQNHeKuNj

— The Independent (@Independent) October 20, 2022

Former Conservative Party leader Sir Iain Duncan Smith told those at the Party Conference in Birmingham that the white paper is a “compromise”, and the government was at an impasse on its eventual publication date.

Whoever takes the keys to Number 10 will have a stacked in-tray. The war in Ukraine continues to rage on, as does the cost-of-living crisis. A need to heal the wounds of the Conservative Party will also be of the utmost importance.

A potential reshuffle could see Gambling Minister Damian Collins, who has pledged his support to Mordaunt in the leadership race, and Culture Secretary Michelle Donelan ousted, in what would add even further delay to the white paper’s publication.

EGR spoke to several key industry figures about their thoughts on what Truss’ resignation could mean for the industry, her potential replacement and when we can finally expect the white paper to be published.

Melanie Ellis, Northridge Law partner:

“Despite recent indications that the white paper could be forthcoming in the next few weeks, today’s news surely pushes the finalisation of future gambling policy firmly back to next year.  Whoever is selected as the next Prime Minister, the pressure on them to shore up the country’s financial situation has only increased.

“I would expect them to be reluctant to make significant changes to gambling regulation without making time for a thorough assessment of the implications for the industry’s profitability.”

Richard Williams, Keystone Law gambling and regulatory partner:

“Despite being handed an oven-ready white paper by Boris Johnson when he resigned, gambling legislation never appeared to be a priority for Liz Truss. Now she’s resigned, new gambling legislation is going to be even less of a priority, as the Conservative Party turns its attention to appointing a new emergency Prime Minister.

“It now seems highly unlikely the white paper will be published before Christmas as Michael Dugher predicted just days ago. This turn of events will likely cause outrage among responsible gambling campaigners. For now, there are far more pressing priorities, such as stabilising the economy and settling the markets.

“Only time will tell whether the emergency leadership contest will result in a new Conservative Prime Minister or if these events will lead to the collapse of the government. Either way, it’s pretty much certain that new gambling legislation will be pushed back into 2023 or potentially scrapped altogether before a general election takes place. Whichever side of the debate you’re on, this perpetual limbo is not good for anyone.”

Matt Zarb-Cousin, Clean Up Gambling director:

“Truss departed from her party’s manifesto commitments and was punished for it. One of those commitments the next Prime Minister can deliver on straight away is the gambling act review. After a lengthy and evidence-based process, the white paper is oven-ready and just awaiting publication. Releasing it will give the next administration a quick win, so there is no reason for any further delays.”

David Richardson, Better Change strategic partnerships manager:

“The instability around government is clearly not helpful for any industry and, as already shown when new ministers are put into power, they need some form of settling-in period before making the big decisions, or things can go disastrously wrong.

“We fear that this will again delay the gambling act review and perhaps push it further down the pile of priorities. Currently, Rishi Sunak is looking like a strong contender to take control of the government.

“Interestingly, last year, he has appeared to show support to the racing sector of the gambling industry by raising concerns over affordability checks and the impact that might have on racing; perhaps due to his constituency in North Yorkshire being so involved with the sport. Whatever the outcome of the next few weeks and months, uncertainty is not the ally of any individuals or industry.”

I was proud to support @PennyMordaunt campaign for the leadership of Conservative Party this summer, and I hope she stands again now. She has the quality and experience to unite the party and rebuild trust in government #PM4PM

— Damian Collins (@DamianCollins) October 20, 2022

Matthew Shaddick, Smarkets head of politics:

“Liz Truss’ announcement has kicked off another Tory leadership contest, with Rishi Sunak and Penny Mordaunt leading the early betting and possibly set for a head-to-head showdown. The second and third in the summer leadership race dominate the market to succeed Truss, with no signs of major support for any other candidates so far. Despite calls for an early election, bettors remain unconvinced that can happen this year, with a 2022 poll giving just a 9% chance of it happening.”

A bet365 spokesperson:

“The news coming out of Downing Street came as little shock considering the Labour Party’s strength in the betting.

“Liz Truss’ position as Prime Minister was deemed untenable by senior Tory MPs and, following her resignation today, Rishi Sunak was installed as 8/13 favourite to replace her. Sir Keir Starmer’s Labour party are 1/3 to win the most seats at the next election and 8/11 to return an overall majority.”