Chancellor Rachel Reeves is facing stark warnings from the gambling industry as she prepares to unveil her budget, with potential tax increases threatening widespread job losses across the sector.
Industry Warns of Economic Consequences
The Betting and Gaming Council has issued a direct appeal to the Treasury, cautioning that any hike in gambling taxes could have severe consequences for employment and the wider economy. The sector currently contributes £4 billion in tax annually and supports £6.8 billion for the UK economy each year.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, told City AM that both customers and colleagues should not be treated as "soft targets." She emphasised that hard-working colleagues across every UK constituency could face job losses if taxes increase, alongside potential impacts on the 22 million customers who place bets monthly.
Budget Pressures and Racing Concerns
The Chancellor is expected to target so-called "sin taxes" in Wednesday's budget as part of efforts to fill a financial black hole while adhering to self-imposed fiscal rules. The gambling industry fears it's being singled out for revenue generation beyond initial tax harmonisation discussions.
Hurst expressed concern that what began as a consultation about creating flat rates for different gaming types in April has evolved into a search for additional Treasury funds. She warned this approach would be equally detrimental to the industry and could lead to the financial ruin of horse racing in Britain.
Conflicting Views on Tax Potential
While the industry highlights its economic contributions and the 2024 levy to support problem gamblers, the Institute for Public Policy Research (IPPR) think tank presents an alternative perspective. The IPPR estimates that a substantial tax on betting and gaming could raise £3.2 billion every year for public finances.
With the budget announcement imminent, Hurst stressed that "there is a huge amount at stake" for the betting and gaming industry, underscoring the significant implications any tax changes could have on businesses, employment, and related sectors throughout the country.
