MPs urge Reeves to raise gambling taxes despite industry 'scaremongering'

"In a report published on Thursday, the Treasury select committee accused betting firms of hiding their most "insidious" and addictive products behind the veneer of traditional, lower-risk activities such as horse racing and seaside amusements. The committee said the Chancellor should focus new duties on high-street slot machines and online casino games, both of which have seen rapid growth since the pandemic."

"The recommendations come as Reeves's team finalises the 26 November Budget, with Treasury officials still weighing whether to harmonise gambling tax rates or target specific sectors. According to industry sources, the Chancellor is likely to favour a moderate rise, expected to raise between £1 billion and £1.5 billion, but she faces mounting political pressure to go further. Calls for a tougher regime echo similar proposals from former prime minister Gordon Brown, who has backed a £3 billion increase"

"The MPs' report also criticised the Betting & Gaming Council (BGC) after its chief executive, Grainne Hurst, denied in a recent evidence session that gambling causes social harm - a moment the committee chair, Meg Hillier, described as "extraordinary". "You feel a moment in a room sometimes where everyone's jaw drops," Hillier said. "A couple of us pushed to ask if she was sure she was saying that. But she doubled down.""

MPs urged the Chancellor to ignore "scaremongering" by gambling companies and push for higher taxes on the most harmful products. The Treasury select committee accused betting firms of hiding insidious and addictive products behind traditional, lower-risk activities such as horse racing and seaside amusements. The committee recommended focusing new duties on high-street slot machines and online casino games, which expanded rapidly since the pandemic. Reeves's team is finalising the 26 November Budget while Treasury officials weigh harmonising tax rates or targeting specific sectors. Industry sources expect a moderate rise of £1–1.5bn amid pressure from politicians and thinktanks for larger increases. The committee criticised the BGC after its chief executive denied that gambling causes social harm and linked taxation levels to addiction risk, calling for a more nuanced system.

Read at Business Matters