TRACEY Crouch, the Culture Minister, has resigned, accusing the UK Government of delaying a crackdown on maximum stakes for fixed-odds betting machines, which she had announced.

In Monday’s Budget, Chancellor Philip Hammond said the cut in maximum stakes from £100 to just £2 for FOBTs would come into force in October 2019, leading to accusations from Labour of a six-month delay.

In the Commons, Jeremy Wright, the Culture Secretary, insisted there was no six-month delay despite Labour claiming he had betrayed the "promise" of his two predecessors.

No 10 also insisted there had not been a delay and that the October 2019 date had been set following a consultation.

But Iain Duncan Smith, the former Tory leader, argued that the decision to bring in the change next autumn was indeed a delay and urged Mr Wright to bring the date forward to April 2019.

Speculation around Ms Crouch's imminent resignation began after she failed to appear in the Commons earlier to answer an Urgent Question around the policy's timing. When questioned about her possible resignation, No 10 said it was not aware of it.

But this afternoon, the Kent MP, who had been the Sports and Civil Society Minister since 2017, resigned.

In her resignation letter to Theresa May, Ms Crouch pointed out how not introducing the crackdown until October 2019 would mean “over £1.6bn will be lost on these machines, a significant amount of which will be in our most deprived areas, including in my own constituency”.

She went on: “In addition, two people will tragically take their own lives every day due to gambling-related problems and for that reason as much as any other I believe this delay is unjustifiable.”

In her response, Mrs May said there was no delay in bringing forward the new measure, noting: “We listened to those who wanted it to come into effect sooner than April 2020 and have agreed the changes should be in place within the year – October 2019.”

Labour’s Tom Watson, the Shadow Digital, Culture, Media and Sport Secretary, said Ms Crouch had taken a “courageous and principled decision”.

He said: “She poured her heart and soul into a significant review of these destructive machines, faced down a systematic lobbying attempt by the gambling industry and took the right decision for those suffering from problem gambling, their families and communities.

“The new Secretary of State has threatened all of this good work. He has prioritised corporate interests over victims, profits over public health and greed over good. He should be thoroughly ashamed,” added Mr Watson.

Earlier his Labour colleague Paul Sweeney, who represents Glasgow North East, said the delay in cracking down on FOBTs would blight lives in Scotland.

“The Tory delay on the implementation of new restrictions on problem FOBTs has cost them a minister in Tracy Crouch and will cost people across Scotland,” declared the Shadow Scotland Office Minister.

“A delay until October 2019 from the proposed implementation in April next year just means more misery.

“Glasgow is the hardest hit city in Britain, losing more money to FOBTs than any other council area in the country, according to industry research.”

It is estimated that the annual social cost to the city is £27 million a year.

Mr Sweeney said FOBTs had rightly been dubbed the crack cocaine of gambling.

“There have been many cases of people rapidly descending into destitution and committing suicide as a result of their addiction. The Tory Government must immediately reverse this decision, which risks doing huge social harm to Glasgow and the whole country,” he added.

Liberal Democrat backbencher Christine Jardine said: “When the minister responsible for a policy steps down, you know the Government is moving in the wrong direction.

"These machines are a blight on our society and undeniably damaging to vulnerable people.

"Tracey Crouch knows this, so why doesn’t the Prime Minister? Theresa May should come to the floor of the House and explain why this will not be implemented for another year,” added the Edinburgh MP.