Labour MPs Push for Urgent Gaming Tax Hike to Lift Child Benefits
BREAKING: A coalition of 101 Labour MPs in the UK is urgently calling for a significant increase in gaming taxes to fund child benefits and abolish the controversial two-child benefit cap. Spearheaded by former chancellor Gordon Brown, this initiative aims to generate an estimated GBP 3.2 billion ($4.3 billion) by more than doubling the current tax rates on gambling.
The proposal comes as the gambling industry continues to thrive, with proponents arguing that it provides minimal value to the UK economy. Almost half of Labour’s 235 backbenchers have rallied behind this plan, which would see taxes on online slots, poker, and bingo jump from 21% to 50%. Additionally, the machine games duty on cash-prize slots and general betting duty on sports betting would increase from 20% to 50% and 15% to 30%, respectively.
In a letter to Chancellor Rachel Reeves, supporters emphasized the urgent need for reform, stating that “no child should be growing up in poverty while gambling companies continue to enjoy profits.” The initiative could potentially lift 500,000 children out of poverty, a critical goal as the UK grapples with rising economic challenges.
Reeves has acknowledged that the proposed tax changes are “on the table,” reinforcing her commitment to address gambling taxation in her upcoming budget announcement scheduled for November 26. While she has indicated plans to align the UK’s gambling tax into a single rate, industry stakeholders, including the British Horseracing Authority and the Betting and Gaming Council (BGC), oppose these changes. They argue that raising taxes could drive gamblers to the black market and jeopardize jobs in the legal sector.
The BGC claims that increasing gambling taxes could do more harm than good, potentially undermining one of Britain’s most popular pastimes. Meanwhile, Alex Ballinger and Beccy Cooper from the All-Party Parliamentary Group have joined the call for action, highlighting the social costs associated with gambling, which they estimate to be around GBP 1 billion annually.
As this debate unfolds, the urgency for reform in gambling taxation has never been more pressing. The public and policymakers alike are watching closely as Labour MPs advocate for a transformative approach to child benefits, potentially reshaping the future for countless families across the UK.
Stay tuned for more updates as this developing story continues to evolve.
