With the UK political landscape undergoing a monumental shift, the Liberal Democrats have bolstered calls for a hike on gambling tax.
It comes as the UK Chancellor Rachel Reeves closes in on her autumn budget and underpins the UK left embracing an approach of high taxes for the gambling industry.
Following its party conference, the Lib Dems released its latest policy for the industry, which includes “making online gambling companies pay their fair share” by hiking remote gaming duty from 21% to 42%.
The policy echoes former Prime Minister Gordon Brown, who warned of the urgent need for a new approach to taxing the industry.
Brown, who led the UK Government from 2007 until his resignation in 2011, backed the Institute for Public Policy Research’s (IPPR) calls for a 50% tax on online and retail slots, rising from 21% and 25% respectively. If implemented, it is estimated that these two changes would raise an additional £1.88bn in revenue for the Government.
The IPPR also stated that the general betting duty levied on bookmakers should rise from 15% to 25%, except for horse racing.
Reeves to meet gambling lobbyists
Whilst the political left has backed significantly higher taxes for the gambling sector, the rates could still be up in the air.
Amid the ongoing review of taxes on the gambling sector, the Guardian reports that Reeves is set to appear as a guest of honour at an event hosted by the chief lobbyist of the gambling industry.
The reception, to be held during the upcoming Labour Party conference, is being organised by Brunswick, a corporate communications company, and is being hosted by the Chair of the Betting & Gaming Council (BGC), Michael Dugher, who joined Brunswick as a part-time “senior adviser” last year.
However, reports of Reeves’ attendance have been met with criticism from MPs and campaigners, who questioned the “very strange timing” given its proximity to the upcoming budget.
Ian Duncan Smith, former Conservative leader and Chair of the All-Party Parliamentary Group on Gambling Reform, said the decision brings into question “the chancellor’s judgement and impartiality on this matter”.
Daisy Cooper MP, the Liberal Democrats’ Treasury spokesperson, urged Reeves to “think long and hard about whether she should appear at this event”.
“Online gambling is one of the places where she should be looking to raise revenue for our public services,” Cooper added.
“If she fails to do so at the budget, she will have serious questions to answer over whether events like this one influenced her at all. To show she cares about taxpayers more than big gambling firms, the chancellor should commit to raising taxes on online gambling giants ahead of the budget.”
Reeves has previously accepted three tickets to a musical with £330 courtesy of the BGC. She also received £20,000 in donations from gambling executives while Labour was in opposition.
Giving local councils greater control
New policy passed by Lib Dems members seeks to frame gambling regulation as a public health issue.
Alongside a tax hike, the party is also proposing the formation of an independent gambling ombudsman, curbing the impact of gambling advertising and regulating online ‘loot boxes’ as gambling.
Notably, they also want to give local councils the same powers over regulating gambling venues as they have over pubs, addressing an issue that has been gaining rising attention as politicians claim that operators are targeting less wealthy areas.
In August, Labour MP Dawn Butler urged the Government to address the “rapid spread” of betting shops on the UK high street.
Butler, MP for Brent East, rallied against the Aim to Permit clause, which limits the power local councils have to refuse applications for new gambling establishments.
Earlier in the year, Andy Burnham, Mayor of Greater Manchester, joined UK councils in demanding urgent Gambling Review action amid fears that local communities are being overwhelmed by “24-hour slot shops”.
In a letter addressed to DCMS Secretary Lisa Nandy, 36 councils and two mayors demanded “key reforms of the Gambling Act”, including giving councils more control to reject licence applications and considering local debt in planning decisions.
Under the Licensing Act 2003, local councils have the power to decide if premises are granted a license to sell alcohol.
The UK’s Autumn budget will be announced on 26 November.
iGaming Expert Insight: Previously the voice of the Liberal Democrats has been somewhat dismissed, however, as UK politics becomes increasingly fragmented, the weight wielded by the Liberal Democrats may well shift at the next election. Whilst it is somewhat speculative, odds suggest that we could be hurtling towards a hung parliament – shifting the status quo at number 10 and reshaping the gambling industry’s relationship with those in power.
