UK Chancellor Accused of 'Gambling with Lives' over Planned Tax Hike
UK Chancellor Rachel Reeves faces criticism over reports that she plans to raise gambling taxes in November's Budget, a move opponents warn could harm the racing sector.
LISTEN TO THIS ARTICLE:According to industry reports, the Treasury is considering increasing the levy on bookmakers from 15% to 21%, aligning it with the rate currently applied to online casino operators. The proposal has triggered strong backlash from figures within the Conservative Party and the wider betting and horse racing industries, who argue that such a rise could lead to widespread job losses and damage one of Britain's oldest sporting sectors.
Related: BGC Report Reveals Massive Gambling Black Market in the UKSpeaking at the Conservative Party conference in Manchester, shadow sport minister Louie French sharply condemned the potential tax rise. He described the plan as reckless and damaging to thousands of workers whose livelihoods depend on the betting and racing ecosystem. French said that while Reeves claims to have no personal interest in gambling, her policies now risk the future of entire communities linked to the industry.
The horse racing and gambling sectors collectively contribute significant revenue to the UK economy. Industry figures estimate that betting firms generate more than £4 billion in annual tax revenue and add around £7 billion in gross value added to the national economy.
The industry also supports an estimated 109,000 jobs, particularly in regional towns and rural areas with strong racing traditions. Critics argue that an abrupt increase in taxation could reduce investment, shrink sponsorship deals, and drive consumers toward unregulated markets.
Reeves, who has emphasized fiscal responsibility since taking office, is under pressure to raise funds ahead of the November Budget. Analysts expect her to target so-called sin taxes, which include levies on alcohol, tobacco, and gambling, as part of efforts to meet the government's fiscal rules. The Chancellor has pledged to balance the need for public revenue with economic stability, but opponents argue the gambling sector is already highly regulated and heavily taxed.
More Regulation News
Over-regulation and Higher Taxes Spell Disaster
Industry advocates and lawmakers have warned that higher taxes could lead to a surge in black market betting. The Betting and Gaming Council has repeatedly highlighted the growing risk of consumers shifting to unlicensed websites if regulated operators are forced to pass costs onto customers.
According to recent estimates, around 1.5 million Britons already place bets through offshore or unregulated sites, costing the Treasury approximately £4 million in lost tax income each year.
Across Europe, the scale of illegal betting is also substantial. Reports suggest that unlicensed sites across the European Union accounted for roughly £70 billion in wagers and casino activity during 2024. Industry leaders say a tax increase could worsen the problem by making legal betting less competitive and pushing players toward unregulated platforms where consumer protections are minimal.
Louie French reiterated that Labour's proposed tax hike represents what he called a major gamble with the livelihoods of thousands of people. He argued that instead of strengthening government finances, the policy could drive down legal betting revenue, harm employment in racing towns, and encourage a rise in black market activity. French added that the Treasury's confidence in the potential revenue gains was misplaced and that the broader economic impact would be negative.
The Budget is scheduled for November 26, and Reeves is expected to finalize her fiscal plans in the coming weeks. Bound by strict self-imposed fiscal rules designed to maintain economic credibility, the Chancellor may find limited alternatives to tax increases. However, the reaction from the gambling and racing sectors suggests that any move to raise levies could set off a new round of political and economic debate over the balance between public revenue and industry sustainability.
RELATED TOPICS: Regulation
Review this New Post
Leave a Comment
User Comments
Comments for UK Chancellor Accused of 'Gambling with Lives' over Planned Tax Hike