National Lottery Reduces Spending By £2.6bn

The National Lottery has caused a £2.6bn reduction in consumer spending in its first year, affecting leisure, food and gambling expenditure, as well as sending tremors through financial services and other sectors. These are the findings of the Henley Centre’s report into the effects of the Lottery.

The Henley Centre believes that the Lottery has permanently altered the spending habits of 30 million British consuemrs for whom playing has become a major part of their leisure. In its second year the Lottery will draw spending away from areas such as entertainment, (down £655m) and food, confectionery and tobacco purchases (down £456m). However, only 3-4% of prizes is being reinvested by winners, despite the fact that there is now around £25m issued every week in £10 prizes.

Overall the Henley Centre’s predictions are bad news for high street businesses but good news for Building Societies; Ray Stone, the Henley Centre’s Lottery expert commented, “Businesses which think that the Lottery is of no importance to their activities really ought to think again. It affects almost every sector.”

Lottery Fallout II: Henley Centre 0171 353 9961