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Former UK Prime Minister backs gambling tax raise proposal
Former UK Labor Prime Minister Gordon Brown publicly backed proposals to raise gambling taxes to address the “social crisis” and take children out of poverty.
Brown believes the revenue from gambling taxes can be used to lift benefit restrictions, including scrapping the two-child benefit cap and the overall benefit cap. The plan, made by the Institute for Public Policy Research (IPPR), would generate an estimated £3.2 billion (US$4.29 billion) a year.
Brown said to BBC Radio 4 that he was not trying to act as a “backseat driver,” but he tries to give the government positive, constructive suggestions. He also acknowledged that Chancellor Rachel Reeves faces intense pressure on the public finances.
Brown shared in The Guardian:
“Gambling levies aren’t the only source of revenue that could pay to alleviate child poverty. But this should be one straightforward Budget choice. The government can fulfil today’s unmet needs by taxing an undertaxed sector.”
According to the IPPR’s plan, tax rates on online casinos would rise from 21% to 50%, while those on slot machines and gaming terminals would increase from 20% to 50%. Bingo and lottery products would be excluded from the changes. The IPPR said raising gambling taxes in this way would be unlikely to reduce overall government revenue.
However, the Betting and Gaming Council strongly criticised the recommendations, calling them “economically reckless” and “factually misleading.” A spokesperson warned that the move could cause gamblers to play in unregulated black market platforms, which creates risks to consumers and generates no tax revenue.
A spokesperson shared:
“Further tax rises, fresh off the back of government reforms which cost the sector over a billion in lost revenue, would do more harm than good – for punters, jobs, growth and public finances.”
Brown also raised the idea of sharing the financial burden of increased defence spending with NATO allies. He suggested the creation of a NATO defence fund or the use of jointly-issued debt, which he said could “create the kind of headroom that Rachel Reeves needs.”
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