Labour is defending its decision to increase taxes on online gambling, with a top minister emphasizing that the move is not aimed at dampening the enjoyment of the activity. Dan Tomlinson, the Exchequer Secretary, dismissed criticisms regarding the tax hikes on remote gambling, which are projected to generate an additional £1.1 billion for the public treasury by 2029/30. During the recent Budget announcement, Chancellor Rachel Reeves targeted online betting to address problem gambling, with the remote gambling duty set to rise from 21% to 40% starting in April 2026.
Notably, horse racing escaped tax increases, and bingo halls received a boost through the unexpected removal of the 10% duty imposed on the game. Mr. Tomlinson, speaking during a visit to BuzzBingo in Tooting, highlighted the social aspect of bingo, stating that it provides a safe and enjoyable form of gambling compared to online gambling, which poses higher risks due to solitary engagement. He reassured that while safeguards are in place for online gambling, the government’s focus is on supporting harmless entertainment activities that bring joy to individuals across the country.
Addressing concerns that the government is stifling fun, Mr. Tomlinson pointed out the abolishment of bingo duty, protection of horse racing, and the freeze on fuel duty for an additional six months. Additionally, measures are in place to provide relief on energy bills and support families during the festive season. The minister emphasized that activities like bingo play a role in combating loneliness, particularly as a growing number of older individuals live alone.
Despite the tax relief, operators in the gambling industry are grappling with mounting costs and heightened competition, leading to a decline in the number of bingo halls from 335 pre-pandemic to 247. Mr. Tomlinson hailed the increase in the minimum wage as a positive step, as it not only benefits workers but also stimulates local economies by encouraging spending in neighborhood stores.
Concerns over business rates were also addressed, with the government implementing support schemes to mitigate the impact of rising values on businesses. Efforts are underway to restructure the tax system by reducing rates for high street properties while imposing higher taxes on online retail giants with substantial warehouse operations.
The government’s commitment to backing businesses and local communities was highlighted amid tensions with pub landlords who have been barring Labour MPs in protest against tax rates. Mr. Tomlinson acknowledged the advocacy of Labour MPs for high street support and emphasized the government’s dedication to safeguarding businesses from significant spikes in valuations.
Overall, the government aims to strike a balance between supporting traditional businesses and adapting to the evolving landscape of online commerce, ensuring a fair and sustainable economic environment for all stakeholders.