Chancellor Rachel Reeves is being urged by the IPPR think tank to more than double the tax rate on gaming machines in her Budget on November 26
Huge proposed increases to gambling machine taxes will shut 3,400 bookies and make 25,000 unemployed, warn industry lobbyists.
Chancellor Rachel Reeves is being urged by the IPPR think tank to more than double the tax rate on gaming machines in her Budget on November 26.
But research by the Betting and Gaming Council (BGC) shows the plans sent to the Treasury would have a devastating effect on Britain’s high streets.
The IPPR proposes raising gambling taxes to fund social programmes with the goal of raising an estimated £3.2 billion to address child poverty.
They include increasing Remote Gaming Duty from 21% to 50%, Machine Gaming Duty from 20% to 50%, and General Betting Duty from 15% to 25%.
But the BGC says there are currently 5,800 betting shops across the UK, supporting 42,000 jobs and contributing £140m a year to horse racing.
BGC chief executive Grainne Hurst said: “Any increase in betting and gaming taxes on any part of the industry would hammer ordinary punters while threatening British jobs, high streets and the future of horse racing.
“The figures for Machine Games Duty speak for themselves – thousands of shop closures, tens of thousands of job losses, and an £84 million hit to horse racing.
“This isn’t a small tweak to the tax system – it’s an act of economic vandalism against communities, workers and Britain’s second most popular spectator sport.
“These proposals risk achieving the exact opposite of what the Treasury intends – lower tax receipts, fewer jobs and more punters turning to unsafe, unregulated black market gambling.
“Britain’s betting and gaming sector is one of the most highly regulated in the world, supporting jobs, investment and sport across the UK.
“We urge the government to resist short-term tax raids that would cause long-term damage – to jobs, to the economy, and to the future of British sport.”