General election called for July 4 as government pledges levy update 'very shortly' and reiterates affordability promise

Prime minister Rishi Sunak has called a surprise general election set to take place on July 4, a move which will raise questions over the progress of gambling reforms including affordability checks.

The news comes on the day the government had pledged to update parliament on the progress of talks to reform the levy aimed at ensuring an increased flow of funding from bookmakers to British racing.

And with Labour holding a commanding lead in the polls there may well be a new administration in government when the Gambling Commission's six-month pilot of 'frictionless' affordability checks is launched in August.

Sunak's government has promised racing that it would not suffer financially from the impact of affordability checks, which the sport's leaders have claimed will cost it £250 million in revenues over the next five years. Labour is regarded as being in favour of the checks, and might also favour more stringent action against gambling advertising than was contained in the government's white paper published last April.

Prime minister Rishi Sunak delivers a speech to announce the July 4 general electionCredit: HENRY NICHOLLS

Ministers have recognised horse and greyhound racing's relationship with gambling when discussing advertising and sponsorship reforms in the past.

"Now is the moment for Britain to choose its future," Sunak told reporters outside Downing Street. "Earlier today I spoke with His Majesty The King to request a dissolution of parliament. The King has granted this request and we will have a general election on July 4."

Earlier on Wednesday culture secretary Lucy Frazer had told MPs she expected the government would update parliament "very shortly" on the progress of talks on levy reform, which were continuing on Wednesday evening even as the election was being announced.

Frazer was speaking at a session of the Culture, Media and Sport select committee when she also reiterated the government's pledge not to introduce affordability checks unless they were frictionless for the vast majority.

The government said it would review the levy system last year but called on racing and bookmakers to come up with a voluntary deal. Talks on that deal have dragged on for several months without agreement and this month Frazer said she would update the house on progress "on or before May 22".

Caroline Dinenage: chair of the Culture, Media and Sport select committee

Asked by the committee's chair Dame Caroline Dinenage when the outcome of the levy review would be published, Frazer said: "Very soon. I've been working very closely with both industries and I am confident that we will be able to update the house very shortly."

The government said it would review the levy to ensure that British racing did not suffer a financial impact from the affordability checks – or financial risk checks as they have been termed – contained in the gambling white paper published last year.

Asked by Labour MP Alex Sobel if the Department for Culture, Media and Sport were confident the checks would be frictionless, Frazer replied: "Absolutely. We believe that they will be frictionless. We are confident that they will be. We are operating a pilot system to ensure that they are frictionless and we have committed to not bringing them in if they aren't."

Culture secretary Lucy Frazer said she recognised there was "nervousness" about affordability checks

Questioned further on affordability checks, Frazer said she recognised there was a "nervousness" about them.

She added: "I hear it all the time, that people are going to be asked for a whole load of documents and it's going to put off punters.

"That's why what Alex asked me is so important that these checks are frictionless, that they happen behind the scenes, that no-one knows that they are taking place unless they are in that small category of people where there is that potential for risk and that's what we want to achieve."

Frazer also welcomed the voluntary interim code on affordability checks created by the Betting and Gaming Council and Gambling Commission which will bring a uniform approach to affordability checks while a frictionless system is trialled.

She said: "If you went to one company you were asked for different things than if you went to another betting company and we were told it was taking people to the black market because they didn't want to produce documents.

"What the industry has come up with, encouraged by us, is a higher threshold for when they are asked for material and they are asked for consistent material across the board. I am really pleased that step has happened and has been welcomed by everyone."

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BHA chief Julie Harrington encouraged by interim gambling code but stresses concern over levy review uncertainty 

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