Chancellor Rachel Reeves has indicated the gambling industry is set to face tax hikes in the Autumn Budget after stating operators should “pay their fair share”.
Speaking to ITV at the Labour Party conference in Liverpool yesterday, 29 September, Reeves suggested rises were in the pipeline.
Reeves, who came under pressure last week via a letter from 101 Labour MPs to commit to tax increases, will deliver the Autumn Budget on 26 November.
While the Treasury recently completed the consultation into harmonising pool and general betting duty and remote gaming duty, think tanks and lobbyists have called for an increase.
Pool and general betting sits at 15%, while remote gaming duty is 21%. Think tanks such as the Institute for Public Policy Research (IPPR) have called for online casino tax to leap to 50%.
The IPPR was cited in the letter signed by the cohort of Labour backbenchers, although the letter was scathed by others for including out-of-date information and economics.
Reeves said: “I’m the chancellor who set up the review of gambling taxes. No other chancellor has done that. Because I think there’s a case for gambling firms paying more.
“I talk to a number of businesses from all sectors of the economy including the gaming sector. On a personal level, I have never in my life bet on anything, but they [gambling firms] make an important contribution to the economy.
“But they should pay their fair share of taxes, and we will make sure that happens.”
Listed companies such as evoke, Entain and Rank Group have seen shares slip around 1% this morning on the back of Reeves’ comments.
Earlier in the conference, the gambling minister Baroness Twycross sat on a panel on the future of gambling.
The session, which was organised by the Social Market Foundation, another think tank calling for tax increases, also featured the IPPR’s principal economist Henry Pakes and head of the All-Party Parliamentary Group for Gambling Reform Alex Ballinger.
The Baroness said: “I know many of you in the room will disagree with the sector when they talk about the risk of the black market but actually these are real risks that we have to take in the round.
“We have to look at what the implications are of raising taxes, and what level of taxes is a safe level to raise them to, where you won’t push consumers into the black market.”
The post Chancellor says gambling firms should “pay their fair share” first appeared on EGR Intel.
Rachel Reeves gives clearest indication yet that tax increases could be included in the Autumn Budget, as gambling minister insists care must be taken not to exacerbate the black market
The post Chancellor says gambling firms should “pay their fair share” first appeared on EGR Intel.