Rachel Reeves, the UK Chancellor of the Exchequer, broke convention this morning by holding an impromptu press conference ahead of the Autumn Budget announcement on 26 November.
The Chancellor is widely expected to increase taxes on gambling when she unveils the Autumn budget, having said at the Labour Party conference earlier this year that betting firms ‘should pay their fair share’ of tax.
In a speech outside Downing Street today, Reeves spoke in vague political terms about the importance of the coming budget – but this has been widely interpreted by political analysts as a confirmation that taxes will increase.
“Later this month, I will deliver my second Budget as Chancellor,” Reeves said. “At that Budget, I will make the choices necessary to deliver strong foundations for our economy – for this year, and years to come.
“It will be a budget led by this government’s values, of fairness and opportunity and focused squarely on the priorities of the British people. Protecting our NHS, reducing our national debt and improving the cost of living.”
We shouldn’t speculate, but we will
For the past couple of months the rumour mill has been swirling around Reeves intentions. A widely expected outcome for gambling is that the three types of gaming duty – 21% Remote Gaming Duty and 15% Pool Betting and General Betting Duty – will merge to one 21% rate.
Another scenario is that general betting duty on sports betting will double from 15% to 30%, machine games duty on slots will go up from 20% to 50%, and remote gaming duty to go from 21% to 50%.
The Treasury has previously stated that rumours around Reeves’ intentions were speculation, something that the Chancellor referenced today. However, as the date looms closer it seems more and more likely that a tax hike in some form will occur.
“You will all have heard a lot of speculation about the choices I will make,” Reeves said. “I understand that – these are important choices that will shape our economy for years to come.
“But it is important that people understand the circumstances we are facing, the principles guiding my choices – and why I believe they will be the right choices for the country.”
Has racing lobbying paid off?
The prospect of tax raises has sent the industry, and its counterparts in horse racing, into lobbying overdrive. The Betting and Gaming Council (BGC) has embarked on a media campaign and has been meeting with various politicians, though its appearance at a Treasury Select Committee hearing last week met a tough crowd of MPs.
Meanwhile, the British Horseracing Authority (BHA) has been involved in its extensive lobbying campaign. The organisation launched the #AxeTheRacingTax movement during the summer and took unprecedented action of a strike on 10 September, calling off scheduled meetings to hold a protest outside parliament.
This action actually drew criticism from the BGC. However, according to The Telegraph its campaigning has paid off, with the paper’s sources telling it that horse racing has been ruled out of any gaming tax increases. Sources added that this will place the burden of taxation more on online gaming and machine games than racing and sports betting.
Responding to a query from SBC Media’s iGaming Expert, a BHA spokesperson said: “We do not wish to comment on speculation ahead of the Budget which is still three weeks away.
“Over the last few months, the Axe The Racing Tax campaign has consistently called on the Treasury to drop its proposals – as set out in its consultation paper published in April – to harmonise online gambling duties into a single rate due to the unintended and devastating consequences this would have for British Racing.
“We are continuing to focus on ensuring this message is heard within Government in advance of the Budget.”
Rachel Reeves, the UK Chancellor of the Exchequer, broke convention this morning by holding an impromptu press conference ahead of the Autumn Budget announcement on 26 November. The Chancellor is widely expected to increase taxes on gambling when she unveils the Autumn budget, having said at the Labour Party conference earlier this year that betting …