Reeves Leaves Door Open To Gambling Tax Rise In Autumn Budget
Rachel Reeves left the door available to a rise in gaming taxes after Gordon Brown advised her to raise levies to cover the expense of lifting the two-child benefit cap.
The Chancellor stated she was "deeply concerned" about kid hardship as she faced questions about the former prime minister's proposition to increase responsibilities for online casinos and slot devices to money welfare reform.
Asked whether she was considering Mr Brown's tip, Ms Reeves stated she had spoken to him last week and would set out Government policy in the autumn budget plan.
Gordon Brown stated gaming taxes need to be raised to fund welfare reform (Dominic Lipinski/PA)
"So I talk to Gordon frequently, and saw him last week when I remained in Scotland," she stated.
"Like Gordon, I am deeply worried around the levels of child poverty in Britain. No child should grow up hungry or parents not have the ability to afford the basics for their household.
"We're a Labour Government. Of course, we appreciate child hardship. That's why one of the very first things we did as a federal government was to establish a kid hardship job force that will be reporting in the autumn and (will) react to it then."
She included: "On gambling taxes, we have actually already launched an evaluation into gambling taxes. We're taking evidence on that at the moment, and again, we'll set out our policies in the regular method, in our budget later this year."
Reforms to betting levies might generate the ₤ 3.2 billion needed to scrap the two-child limit and benefit cap, the Institute for Public Law Research (IPPR) said.
The think tank's latest research study said axing the policies might lift half a million kids out of poverty and "reverse years of rising difficulty for low-income households".
Giving his backing to the report, Mr Brown, a picture of whom Ms Reeves reportedly kept in her bed room as a trainee, stated it would be the "first crucial action in the war we must wage versus kid poverty".
The Government is anticipated to publish a kid poverty method in the fall, and project groups have said it should include a dedication to desert the two-child limitation.
Thanks to IPPR's report, we now understand that taxing betting more relatively would completely money the first important step in the war we should wage versus child poverty - ending the two-child limitation and raising the benefit cap
Gordon Brown
Economists have cautioned tax increases in the autumn are most likely required to plug a hole in the general public finances left by poor economic figures and U-turns on welfare, triggering speculation about which areas Ms Reeves may target.
The IPPR recommended 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 fairly would fully money the first vital action in the war we must wage against kid hardship - ending the two-child limit and lifting the benefit cap."
Labour Mayor for the Liverpool City Region Steve Rotheram heaped more pressure on the Chancellor later on Thursday, stating that lifting 500,000 children out of poverty should be "a national mission".
"Gordon is spot on," he stated. "The Government has a genuine chance to act now and change young lives throughout the nation."
Gordon is area on - lifting 500,000 kids out of poverty should be a national objective.
The government has a genuine opportunity to act now and transform young lives across the nation.
Let's get this done. https://t.co/JQY3K0jFxp
- Steve Rotheram (@MetroMayorSteve) August 7, 2025
But a representative for the Betting and Gaming Council rejected the "financially careless, factually misguiding" propositions which "danger driving huge numbers to the growing, unsafe, unregulated gambling black market, which doesn't and contributes absolutely no tax".
They included: "Further tax increases, fresh off the back of Government reforms which cost the sector over a billion in lost income, would do more harm than great, for punters, tasks, growth and public finances."