Labour considers up to £3B tax raid on gambling firms
The UK Labour government is considering a tax increase on gambling firms to address a £22 billion shortfall, with proposals potentially raising between £900 million and £3 billion.
Read original article
The UK Labour government is contemplating a significant tax increase on gambling firms, potentially raising up to £3 billion to address a £22 billion shortfall in public finances. Chancellor Rachel Reeves is considering proposals from influential think tanks, including the Institute for Public Policy Research (IPPR), which suggests doubling taxes on high-risk gambling products. This could generate approximately £2.9 billion next year and up to £3.4 billion by 2030. The Social Market Foundation is also proposing a more moderate tax increase, raising online gambling taxes from 21% to 42%, which could yield around £900 million. The gambling industry has expressed concerns about the potential negative impacts of such tax hikes, including a rise in illegal gambling activities. The Treasury has not yet made a final decision but appears open to revising the current tax structure, which includes various duties on different gambling activities. The proposals are expected to be discussed in the upcoming budget, marking Labour's first budget in 14 years.
- Labour is considering a tax increase on gambling firms to address a £22 billion public finance gap.
- Proposals could raise between £900 million and £3 billion, depending on the tax structure changes.
- The IPPR suggests doubling taxes on high-risk gambling products, while the Social Market Foundation proposes a more moderate increase.
- The gambling industry warns that higher taxes could lead to increased illegal gambling.
- The final decision on tax changes is expected to be made before the upcoming budget announcement.
Related
UK Debt Hits 100% of GDP, Highest Level Since 1960s
UK national debt has hit 100% of GDP, with August borrowing at £13.7 billion. Labour faces pressure to address economic challenges amid declining consumer confidence and rising public spending.
Legalizing Sports Gambling Was a Mistake
The legalization of sports gambling has increased financial distress for vulnerable households, raising bankruptcy risk, debt delinquency, and domestic violence, while minimal tax revenues fail to offset significant social costs.
UK founders rush to sell startups ahead of Autumn Budget
As the UK approaches its Autumn Budget, startup founders are selling businesses due to potential capital gains tax increases, with some considering relocation abroad amid rising tax concerns and government scrutiny.
Irish finance minister calls €14B tax windfall from Apple 'transformational'
Irish Finance Minister Jack Chambers announced a €14 billion tax windfall from Apple for infrastructure projects, with corporate tax revenue projected at €38 billion, amid a cost-of-living crisis.
Sports Betting Will Do to America What It's Done to Australia
Australia's extensive sports betting culture results in $22 billion in annual losses, prompting calls for reform. A proposed ban on gambling ads faces opposition from sports leagues, complicating regulation efforts.
1 commentsThis industry may boost GDP in the short term, but I'm skeptical that there is any economic benefit once you factor in the mugs who stop participating in the rest of the economy or who default on debt.
Related
UK Debt Hits 100% of GDP, Highest Level Since 1960s
UK national debt has hit 100% of GDP, with August borrowing at £13.7 billion. Labour faces pressure to address economic challenges amid declining consumer confidence and rising public spending.
Legalizing Sports Gambling Was a Mistake
The legalization of sports gambling has increased financial distress for vulnerable households, raising bankruptcy risk, debt delinquency, and domestic violence, while minimal tax revenues fail to offset significant social costs.
UK founders rush to sell startups ahead of Autumn Budget
As the UK approaches its Autumn Budget, startup founders are selling businesses due to potential capital gains tax increases, with some considering relocation abroad amid rising tax concerns and government scrutiny.
Irish finance minister calls €14B tax windfall from Apple 'transformational'
Irish Finance Minister Jack Chambers announced a €14 billion tax windfall from Apple for infrastructure projects, with corporate tax revenue projected at €38 billion, amid a cost-of-living crisis.
Sports Betting Will Do to America What It's Done to Australia
Australia's extensive sports betting culture results in $22 billion in annual losses, prompting calls for reform. A proposed ban on gambling ads faces opposition from sports leagues, complicating regulation efforts.