Labour is defending its decision to increase taxes on online gambling, with a senior minister emphasizing that the move is not intended to dampen the enjoyment of gaming. Exchequer Secretary Dan Tomlinson dismissed criticisms regarding the tax hikes on remote gambling, which are projected to boost government revenue by an additional £1.1 billion by 2029/30. In the recent Budget announcement, Chancellor Rachel Reeves targeted online betting to address problem gambling, signaling a significant increase in remote gambling duty from 21% to 40% starting April 2026.
While online gambling faced tax rises, horse racing was exempted, and bingo halls received a positive shift with the removal of the 10% duty applied to the game. Speaking during a visit to BuzzBingo in Tooting, Mr. Tomlinson highlighted the safety and harmless nature of bingo as a form of entertainment, contrasting it with the potential risks associated with online gambling.
The minister clarified that Labour’s focus is not on restricting fun, noting the abolition of bingo duty, protection for horse racing, and the freeze on fuel duty for an additional six months to support families during Christmas. Additionally, he mentioned the upcoming reduction in energy bills and emphasized the positive impact of activities like bingo in combating loneliness, particularly among older individuals living alone.
Despite the tax relief, operators in the gaming industry continue to face challenges from escalating costs and market competition. The decline in the number of bingo halls from 335 pre-pandemic to 247 underscores the industry’s struggles. Mr. Tomlinson highlighted the benefits of the minimum wage increase, emphasizing its positive effects on local economies as workers are more likely to spend their earnings in their communities.
The Treasury Minister addressed concerns about business rates, emphasizing the government’s comprehensive support scheme for businesses facing increased bills. Efforts are underway to rebalance the system by reducing rates for high street properties while imposing higher taxes on online giants with significant warehouse operations.
The ongoing dispute with pub landlords, who have been barring Labour MPs in protest against tax rates, was acknowledged by Mr. Tomlinson. He underscored the commitment of Labour MPs to support local businesses and high streets, highlighting the government’s efforts to shield many businesses from substantial valuation increases in the recent Budget.
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