Labour is defending its decision to raise taxes on online gambling, with a top minister asserting that the move is not aimed at dampening the enjoyment of the activity. Dan Tomlinson, the Exchequer Secretary, dismissed criticisms of the tax hikes on remote gambling, which are projected to boost government revenues by an additional £1.1 billion by 2029/30. The Chancellor, Rachel Reeves, in the recent Budget, targeted online betting to address issues related to problem gambling, announcing a significant increase in remote gambling duty from 21% to 40% starting in April 2026.
While horse racing was spared from tax increases, bingo halls received a positive boost as the government eliminated the 10% duty imposed on the game. During a visit to BuzzBingo in Tooting, Mr. Tomlinson emphasized the safety and harmless nature of activities like bingo, contrasting them with the potential risks associated with online gambling. He highlighted the importance of providing enjoyable and secure gambling options for individuals across the country, whether for social gatherings or leisure activities.
Addressing concerns about the taxation of fun, Mr. Tomlinson highlighted the government’s efforts to support families and businesses by abolishing bingo duty, safeguarding horse racing, freezing fuel duty for an additional six months, and providing relief on energy bills. He emphasized the positive impact of activities like bingo in combating loneliness, particularly among older individuals living alone.
Despite the tax relief, operators in the gambling sector are still facing challenges due to rising costs and increased competition. The decline in the number of bingo halls from 335 before the pandemic to 247 underscores the ongoing pressures on the industry. Mr. Tomlinson praised the government’s decision to raise the minimum wage, noting its benefits for workers and local economies, as increased wages can stimulate spending in communities and support economic growth.
Business rates and the end of Covid-era support remain significant concerns for firms, with a revaluation coinciding with the withdrawal of pandemic-related assistance. The government is implementing extensive support measures to assist businesses facing substantial increases in their tax bills. Efforts are underway to rebalance the tax system by reducing rates for high street properties such as retail, hospitality, and leisure, while imposing higher taxes on online corporations with large warehouses.
The government’s commitment to supporting high streets, pubs, and the hospitality sector has been highlighted amid tensions with pub landlords who have been barring Labour MPs in protest against tax policies. Mr. Tomlinson emphasized the importance of engaging with businesses to address their concerns and ensure that the Budget protects various enterprises from significant valuation increases.
Overall, the government aims to promote economic resilience, support local businesses, and create a conducive environment for sustainable growth through a combination of tax policies and support initiatives.