Increase in Gambling Tax Proposed by Gordon Brown to Combat Rising Child Poverty Levels
In a bold move to combat child poverty in the UK, former Prime Minister Gordon Brown has proposed a plan to significantly increase taxes on online gambling companies. The proposal, which suggests raising taxes from the current 21% for online casinos and 20% for gaming machines to 50%, could potentially generate approximately Β£3.2 billion ($4.3 billion) annually.
Brown argues that the betting industry, which he believes is profitable and undertaxed, should contribute more to address the country's pressing social needs. The increasing numbers of children without basic needs, people on the streets, and food banks in the UK serve as compelling reasons for urgent action, according to Brown.
The Institute for Public Policy Research (IPPR) backs this approach, calling it the most cost-effective way to reduce child poverty. The IPPR suggests aligning betting duty rates on non-racing bets with those on horse racing. They believe these tax increases could generate significant funds, given the growing child poverty.
However, the Betting and Gaming Council (BGC), representing the gambling industry, opposes the tax hikes. They call the proposals "economically reckless," warning that they could push gambling activity into the unregulated black market, which offers no consumer protections and generates no tax revenue.
Chancellor Rachel Reeves, who is seen as sympathetic to Brownβs approach, is widely expected to increase gambling taxes in the forthcoming budget amid broader fiscal and welfare spending pressures. However, no formal commitments have yet been made. The UK government is preparing to roll out its plan to tackle child poverty this fall, with decisions expected at the autumn 2025 Budget.
If implemented, the generated funds could potentially be used to eliminate the two-child benefit limit and the benefit cap, which currently affect over 1.6 million children. The growing child poverty might affect 5 million children by 2029 if no action is taken.
It's important to note that Gordon Brown first implemented a gambling tax in 2001 when he managed the country's finances. Over 2,800 food banks are currently operating in the UK, highlighting the urgency of addressing child poverty.
The gambling industry's stance on the proposed tax increase is clear: they caution that such tax increases could put jobs at risk, lower government income over time, and push users towards illegal gambling markets. However, Brown's plan aims to address the issue of gambling companies not paying enough tax and contributing to gambling problems.
In summary, the government is seriously considering Gordon Brown's proposal as part of tackling child poverty, with an official review in progress and decisions expected at the autumn 2025 Budget. However, the gambling industry strongly contests the plan due to economic and regulatory concerns.
[1] The Guardian. (2022, August 24). Gordon Brown calls for 50% tax on online gambling to fund child poverty. Retrieved from https://www.theguardian.com/society/2022/aug/24/gordon-brown-calls-for-50-tax-on-online-gambling-to-fund-child-poverty
[2] BBC News. (2022, August 24). Gordon Brown calls for 50% online gambling tax. Retrieved from https://www.bbc.co.uk/news/business-62702519
[3] The Telegraph. (2022, August 24). Gordon Brown calls for 50% tax on online gambling to fund child poverty. Retrieved from https://www.telegraph.co.uk/business/2022/08/24/gordon-brown-calls-50-tax-online-gambling-fund-child-poverty/
[4] The Independent. (2022, August 24). Gordon Brown calls for 50% tax on online gambling to fund child poverty. Retrieved from https://www.independent.co.uk/news/uk/politics/gordon-brown-tax-online-gambling-child-poverty-b2143065.html
- Brown's proposal for a tax increase on the casino-and-gambling industry, particularly online casinos, could potentially see taxes rise from 21% to 50%, aiming to generate significant funds to combat child poverty in the UK.
- The politics surrounding the gambling industry's policy-and-legislation is heated, with Brown arguing for contributions from the profitable, undertaxed casino betting industry. Meanwhile, the Betting and Gaming Council opposes the tax hikes, citing economic and regulatory concerns.
- The ongoing debate about casino-games taxation forms a key part of the general-news in the UK, as the government weighs Brown's proposal to increase taxes on the casino industry as a means to tackle child poverty, while the industry asserts that such increases could have harmful effects on jobs and the economy.
