Brown Backs UK Gambling Tax Hike to Fight Child Poverty
Former United Kingdom Prime Minister Gordon Brown has thrown his weight behind a proposal to hike the levy on online casino slots and gaming machines to 50%.
LISTEN TO THIS ARTICLE:According to a report by the Institute for Public Policy Research (IPPR), increasing taxes on these forms of gambling could generate enough money to cover costs associated with reducing child poverty. The discussion revolves around scrapping the two-child limit and benefit cap, which the IPPR believes is crucial for lifting children out of penury.
The two-child limit and benefit cap are seen as arbitrary barriers that prevent families from receiving the support they need, particularly affecting lone parents and large families who are already struggling financially.
Under the two-child policy, child tax credits and Universal Credit are restricted to the first two children in most households, while the benefit cap reduces overall benefits if they exceed a set threshold.
Ahead of the Government's upcoming child poverty strategy, set to be published this autumn, campaign groups are calling for a firm commitment to abolish the two-child limit. The IPPR suggests that the highly profitable gambling sector could reasonably be expected to contribute more to help cover the costs of scrapping the policy.
The organisation is also calling for an increase in the general betting duty on non-horseracing bets, from 15% to 25% aiming to align the rates for other sports with those currently paid by the horseracing industry.
The gambling industry is highly profitable, yet is exempt from paying VAT and often pays no corporation tax, with many online firms based offshore. It is also inescapable that gambling causes serious harm, especially in its most high-stakes forms.
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Gordon Brown expresses his support for the IPPR’s report, stating that implementing fairer gambling taxes would fully fund the abolition of the two-child limit and the removal of the benefit cap, achieving a milestone in the fight against child poverty.
However, the UK betting industry has rejected the call for higher taxes, claiming that it would unfairly penalize responsible operators and drive players to illegal gambling platforms. A spokesperson for the Betting and Gaming Council dismissed the proposals as “economically reckless” and “factually misleading.” They argue that the measure could push a large number of people to the unregulated and unsafe gambling black market, which would undermine consumer protection and contribute nothing to tax revenues.
According to the spokesperson, imposing additional tax increases, following recent government reforms that have already resulted in over £1 billion in lost revenue for the sector, would be counterproductive for consumers, employment, economic growth, and public finances.
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