Policy
Corporate Governance Framework
Our corporate governance framework sets out the necessary responsibilities and procedures that guarantee we operate properly.
27 - Fees, Grant-in-Aid and any ring-fenced grants
27.1. The Gambling Commission (the Commission) will, for functions undertaken in relation to the Gambling Act 2005, and in accordance with that Act, operate on a net running costs basis under which fee income received by the Commission is used to fund its work directly, rather than surrendered to the Government. Fees to fund these functions will be determined on a full cost recovery basis in accordance with the Treasury’s Fees and Charges guidance. Any funds that are unused by the end of any given financial year require the Department for Digital, Culture, Media and Sport (DCMS) approval to be utilised in any following year. Forecasts should be provided by the Commission that are taut, realistic and consistent, and consistent with Managing Public Money (MPM).
27.2. Subject to periodic review, the Commission may retain non-grant-in-aid income for spending in connection with the achievement of the Commission’s strategic aims. The Commission seeks to establish fees on a full cost recovery basis, taking one year with another where unforeseen surpluses or deficits occur, ensuring that fees remain appropriate and proportionate over the duration of the corporate strategy.
27.3.Review of the Commission’s fees is at the discretion of the Secretary of State, to be exercised in accordance with the principles of MPM. The Commission and DCMS will carry out an annual health check to determine whether fee levels remain appropriate or whether a further comprehensive review is required.
27.4.The annual check will consider any significant changes to legislation or the number and complexity of regulated operators. It will also take into account levels of inflation, efficiency savings made by the Commission and whether changes to industry structures or patterns of risk have significantly altered the focus of its regulatory effort. The outcome of this consideration will be recorded and signed off by the Director of Finance or the Head of Gambling and Lotteries in DCMS and by the Chief Executive or Chief Operating Officer of the Commission. The annual check may be brought forward and a comprehensive review of fees initiated by DCMS if it is clear that this will be required.
27.5.Grant-in-Aid is the amount payable by the DCMS to the Gambling Commission in each year, primarily in relation to National Lottery regulation, and is distinct from the budget.
27.6.Any grant-in-aid provided by the department for the year in question will be voted in the department’s Supply Estimate and be subject to parliamentary control.
27.7. The grant-in-aid will normally be paid in monthly instalments on the basis of written applications showing evidence of need. The Commission will comply with the general principle that there is no payment in advance of need. Cash balances accumulated during the course of the year from grant-in-aid or other Exchequer funds shall be kept to a minimum level consistent with the efficient operation of the Commission. Grant-in-aid not drawn down by the end of the financial year shall lapse. Subject to approval by Parliament of the relevant Estimates provision, where grant-in-aid is delayed to avoid excess cash balances at the year-end, the department will make available in the next financial year any such grant-in-aid that is required to meet any liabilities at the year end, such as creditors.
27.8. In the event that the department provides the Commission separate grants for specific (ring-fenced) purposes, it would issue the grant as and when the Commission needed it on the basis of a written request. The Commission would provide evidence that the grant was used for the purposes authorised by the department. The Commission shall not have uncommitted grant funds in hand, nor carry grant funds over to another financial year.
Last updated: 16 January 2024
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