Labour is defending its decision to increase taxes on online gambling, with a senior minister emphasizing that the move is not intended to spoil the fun. 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. In the recent Budget announcement, Chancellor Rachel Reeves targeted online betting to address issues related to problem gambling, with the remote gambling duty set to rise from 21% to 40% starting April 2026.
While horse racing was exempt from the tax increases, bingo halls received a boost as the 10% duty on the game was eliminated unexpectedly. During a visit to BuzzBingo in Tooting, Mr. Tomlinson highlighted the positive aspects of bingo as a safe and enjoyable form of gambling for people across the country, especially in social settings.
Regarding concerns about targeting fun, Mr. Tomlinson clarified that Labour is abolishing bingo duty, safeguarding horse racing, and extending the freeze on fuel duty for an additional six months to help families manage their expenses during Christmas. Additionally, a £150 reduction in energy bills is expected in the coming spring. The minister refuted claims that the government is taxing fun, emphasizing the importance of activities like bingo in combating loneliness, particularly among older individuals living alone.
Despite the tax relief, operators in the gaming industry are still under pressure due to rising costs and competition. The number of bingo halls has decreased from 335 pre-pandemic to 247, compared to 635 in 2007. Mr. Tomlinson praised the increase in the minimum wage as a win-win situation, benefiting workers with higher earnings who are likely to spend more in local communities, supporting the economy.
Business rates remain a major concern for firms, especially with a revaluation coinciding with the end of Covid-era support. Mr. Tomlinson assured that businesses would receive extensive support, with bill increases capped for most businesses over the next year. Efforts are underway to rebalance the system by reducing rates for high street properties like retail, hospitality, and leisure while increasing taxes on online giants with significant warehouses.
The ongoing dispute with pub landlords, who have been barring Labour MPs in protest against tax rates, has escalated. Mr. Tomlinson acknowledged the concerns raised by Labour MPs about supporting high streets, pubs, and hospitality businesses, emphasizing the government’s commitment to protecting businesses from substantial valuation increases.
