Labour MPs back gambling tax to fight child poverty

Nearly a quarter of Labour MPs have signed a petition urging the chancellor to hike taxes on gambling companies and use the money to lift benefit restrictions on families with more than two children.

The BBC reported that the campaign – which has the backing of 101 Labour MPs – says a levy on gambling could raise £3bn which could lift half a million children out of poverty.

Rachel Reeves has come under pressure from her own party, including former prime minister Gordon Brown, to scrap the two-child benefit cap when she sets out her Budget on 26 November.

The UK’s Betting and Gaming Council said more tax hikes on the industry “would only harm jobs, investment, and vital funding for sports and tourism”.

A spokesperson said:

“Every time the Treasury squeezes the regulated market, the black market grows stronger.

“Unregulated operators pay no tax, provide no consumer protections, and threaten UK jobs and revenues.”

According to the report, senior voices in the Labour party have continued to push for a change including Treasury select committee chair Dame Meg Hillier, who argued it was “the only way we’ll lift children out of poverty in this parliament”.

The government is currently consulting on plans to merge different betting taxes from October 2027 in a bid to adapt the system to the era of online gambling.

Gordon Brown has backed proposals from the IPPR think tank that taxes on online gambling should be raised from 21% to 50%.

The IPPR has also said taxes on slot machines should rise from 20% to 50% and levies on non-racing bets should be increased from 15% to 25%.