Reeves Leaves Door Open To Gambling Tax Rise In Autumn Budget

Rachel Reeves left the door open to a rise in gaming taxes after Gordon Brown urged her to raise levies to cover the cost of raising the cap.


The Chancellor stated she was "deeply concerned" about kid hardship as she dealt with questions about the previous prime minister's proposal to increase tasks for online casinos and fruit machine to money well-being reform.


Asked whether she was considering Mr Brown's recommendation, Ms Reeves said she had actually spoken with him last week and would set out Government policy in the fall spending plan.


Gordon Brown stated gambling taxes must be raised to money well-being reform (Dominic Lipinski/PA)


"So I speak to Gordon frequently, and saw him recently when I remained in Scotland," she stated.


"Like Gordon, I am deeply concerned around the levels of kid hardship in Britain. No kid should grow up hungry or parents not be able to manage the essentials for their household.


"We're a Labour Government. Obviously, we care about kid poverty. That's why one of the very first things we did as a government was to set up a child hardship job force that will be reporting in the autumn and (will) respond to it then."


She added: "On gambling taxes, we've already introduced an evaluation into betting taxes. We're taking evidence on that at the moment, and once again, we'll set out our policies in the normal way, in our spending plan later on this year."


Reforms to gambling levies could generate the ₤ 3.2 billion needed to scrap the two-child limitation and benefit cap, the Institute for Public Policy Research (IPPR) stated.


The think tank's most current research said axing the policies might raise half a million children out of hardship and "reverse years of increasing challenge for low-income families".


Giving his support to the report, Mr Brown, a picture of whom Ms Reeves apparently kept in her bed room as a student, said it would be the "first vital step in the war we must wage versus kid poverty".


The Government is expected to publish a kid poverty strategy in the fall, and project groups have stated it must include a dedication to desert the two-child limitation.


Thanks to IPPR's report, we now understand that taxing gambling more fairly would fully money the first vital step in the war we need to wage against kid poverty - ending the two-child limit and lifting the benefit cap


Gordon Brown


Economists have alerted tax increases in the fall are most likely required to plug a hole in the general public financial resources left by bad economic figures and U-turns on welfare, prompting speculation about which areas Ms Reeves might target.


The IPPR suggested increasing taxes on online casinos from 21% to 50% and raising those on slots and gaming devices, from 20% to 50%.


Mr Brown included: "Thanks to IPPR's report, we now know that taxing betting more relatively would totally fund the very first crucial step in the war we need to wage against child poverty - ending the two-child limitation and raising the benefit cap."


Labour Mayor for the Liverpool City Region Steve Rotheram loaded additional pressure on the Chancellor later on Thursday, stating that raising 500,000 children out of hardship must be "a nationwide objective".


"Gordon is area on," he stated. "The Government has a real chance to act now and transform young lives throughout the country."


Gordon is area on - raising 500,000 kids out of poverty need to be a national mission.


The federal government has a real chance to act now and transform young lives across the country.


Let's get this done. https://t.co/JQY3K0jFxp


- Steve Rotheram (@MetroMayorSteve) August 7, 2025


But a representative for the Betting and Gaming Council turned down the "economically careless, factually deceiving" propositions which "risk driving huge numbers to the growing, hazardous, unregulated gambling black market, which doesn't safeguard consumers and contributes zero tax".


They included: "Further tax rises, fresh off the back of Government reforms which cost the sector over a billion in lost earnings, would do more harm than good, for punters, tasks, development and public finances."