Chancellor's Budget costs Rank £2.5m

23rd Jun 2010 07:58

Rank has calculated yesterday's Budget will result in a net cost to the Mecca bingo clubs and casinos firm of about £2.5m from 2011.The increase in the standard rate of VAT from 17.5% to 20% and changes to the National Insurance regime will force the group to "seek ways to minimise the impact on earnings".Last month, the company received £42.5m in overpaid VAT back from Her Majesty's Revenue and Customs, although HMRC is still appealing the case. The repayment relates to £16.1m overpaid on games of bingo between 2004 and 2009 and £26.4m relating to amusement machine revenues between 2002 and 2005. HMRC's appeal should be heard in 2011. If the HMRC appeal is successful Rank will be forced to return the payment plus interest.