The gambling industry and high street could be hit with job losses if the Chancellor hikes taxes on betting, the Betting and Gaming Council has warned.
Rachel Reeves is expected to target so-called “sin taxes” at Wednesday’s budget, alongside a number of other areas – from ISAs to income tax thresholds to VAT – to fill her financial black hole while sticking to her self-imposed fiscal rules.
The gambling sector, which currently pays £4bn in tax per year, is set to be hit with tax rises in a move that could cause job losses and the financial ruin of horse racing in Britain.
Gambling on gambling
“Some people frustratingly think that our customers or our colleagues are soft targets, but that’s absolutely not the case,” Betting and Gaming Council chief executive Grainne Hurst tells City AM.
“We have hard working colleagues up and down the country, in basically every constituency in the UK, who may well be at risk of losing their jobs in some shape or form if there were to be tax increases, not to mention the 22m-odd customers that like to enjoy a bet each month with us.”
The industry contributes £6.8bn to the wider UK economy each year and pays a levy slapped on gambling in 2024 to aid problem gamblers, but the Institute for Public Policy Research (IPPR) think tank believes a hefty tax on the betting and gaming could raise £3.2bn every year.
“It started off as harmonisation when the consultation was published back in April, which was looking at whether instead of differing rates, there should be a flat rate for different types of gaming,” Hurst adds.
“But I feel like maybe it’s moved on from harmonisation now and it’s looking for money to fill some of the black hole – that would be equally detrimental to the industry.
“There is a huge amount at stake in the budget if the chancellor were to increase any taxes on the betting gaming industry.”