'Government should hand over lottery tax'

The Treasury should give up tax raised from any National Lottery game launched to fund an Olympic Games in London, Tories have said.

Former Olympic champion Sebastian Coe, now a Tory peer, is to lead moves to
force the Government into handing over its 12% cut.

If the capital's bid to host the 2012 Games succeeds, a Lottery game is expected to raise up to £1.2 billion of the cost of putting them on.

Another Tory peer with an Olympic medal to his name, former Sports Minister Lord Moynihan, said the proposals had the backing of leading sportsmen and women.

He told BBC Radio 4's Today programme: "Uniquely, the Government are introducing a game which will be uniquely focused on the Olympic bid.

"That is very different to the generality of gambling and gambling tax.

"It is saying to the public 'go out and buy tickets and through buying those tickets...that money should support the Olympics'.

"If they are asking the public to do that, with the 12% they will receive in terms of taxation, they should do that as well.

"We are going to need those funds and I am very surprised that the Government are ducking out on this.

"Virtually every sportsman and woman I have come across and lover of sport will, I hope, support this point of view."

He said Lord Coe would put an amendment to legislation introducing the game when it was debated by peers.

"I think there will be universal support for the fact that if the Government is really dedicated, if they really want to back the bid to the hilt, then they should stand shoulder to shoulder with the public who will be buying the tickets."