Annual Report and Accounts 2022 to 2023
i) Financing Grant-in-Aid
The Gambling Commission receives Grant-in-Aid (GIA) funding for National Lottery operations. In accordance with the the Financial Reporting Manual (FReM), GIA is treated as a financing transaction rather than as revenue as it is a contribution from a controlling entity.
The Commission holds reserves as a matter of prudent financial management, principally so that it can fund legal action in furtherance of its regulatory objectives; manage short-term fluctuations in its licensing income and provide for foreseeable but not yet certain liabilities such as other provisions. This also allows the Commission to manage its in year financial position accurately. Following an update to our Reserves Policy within 2022 to 2023, the Commission calculates that reserves of £7 million meet this requirement. Reserves were maintained at this level at the close of 2020 to 2021 as a result of a GIA advance from our sponsor department. Our reserves levels have increased during the year, largely as a result of delayed planned investments due to the publication of the Gambling Act Review White Paper being later than planned, additionally significant underspends on staffing costs. As an arms-length body the Commission does not hold reserves to cover terminal liabilities as these would be met by Department for Culture, Media and Sport (DCMS).
Last updated: 18 October 2023
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