Shropshire MP backs higher taxes on gambling companies - but not horseracing - to help tackle child poverty
A Shropshire MP has joined calls for the Government to hike taxes on betting companies to help tackle "unacceptable" child poverty.
Julia Buckley, MP for Shrewsbury, has co-signed a letter to Chancellor Rachel Reeves urging her to introduce "significant reforms" to online gambling taxation in the upcoming autumn Budget.
She is among 101 MPs calling for a "targeted levy on harmful online gambling products", with revenue ringfenced to fund the removal of the two-child benefit cap.
The "unique" British horseracing sector should be "protected through a differentiated tax approach" though, the MPs have argued.
The letter argues that online gambling companies are currently "relatively lightly taxed" despite being "highly profitable", and urges the Government to act.
"I have co-signed a letter to the Chancellor urging her to consider significant reforms to online gambling taxation in the upcoming autumn Budget," said Julia Buckley MP.
"Our goal is clear - tackle gambling harms and use the funds raised to fight child poverty.
"With online gambling revenues reaching unprecedented highs, it’s unacceptable that nearly 4.3 million children in the UK still live in poverty. The proposed online gambling levy would take into account both company profits and the social harms caused. Importantly, this levy would exclude the National Lottery, bingo, and horse racing.
"Funds raised would be ringfenced specifically to support initiatives aimed at reducing child poverty, including removing the two-child benefit cap."
The letter, coordinated by MPs Alex Ballinger and Beccy Cooper of the All-Party Parliamentary Group for Gambling Reform, cites a report by the Institute for Public Policy Research (IPPR) think tank that proposed raising Remote Gaming Duty (RGD) to 50 per cent and General Betting Duty (GBD) to 30 per cent, claiming the measures could generate up to £2.9 billion in the first year.
"The introduction of an additional, differentiated levy on online gambling would help to fill part of the fiscal gap while enhancing the fairness and purposefulness of our tax system," the letter states. "Revenue from such taxation should be ringfenced to support the abolition of the two-child benefit cap and the wider goal of reducing child poverty."
However, the MPs stressed that they are not advocating for a tax rise on the British horseracing sector, which they say plays a vital cultural and economic role.
"As outlined in the Social Market Foundation’s report, horseracing is not only a sport of cultural and historical significance but also supports approximately 85,000 jobs. Increasing taxes on horseracing risks driving consumers toward more harmful gambling products.
"To safeguard this unique industry, horseracing should be protected through a differentiated tax approach that reflects its social and economic importance, as outlined in the SMF’s recent report - which also received the 'full backing' of the National Trainers Federation."
