Kemi_Badenoch_Manchester_Speech

The Conservative Party Conference in Manchester has remained largely silent on gambling tax increases.

The only direct criticism of Labour’s expected levy hikes came from shadow sports minister Louie French, who warned that “Labour is in no way prepared to deal with the consequences of a tax rise on UK gambling”.

French takes stand, but who is listening

Like many in the industry, French believes Chancellor Rachel Reeves has all but confirmed higher gambling taxes in the Autumn Statement scheduled for 26 November.

For the minister, the question is not if, but where the taxes will fall — a 21% alignment across all gambling verticals, or a steeper increase targeted at remote gambling duties, a move reportedly favoured by think tanks advising Reeves and former Prime Minister Gordon Brown.

French did not hold back, adding: “Rachel Reeves claims she’s never gambled. Well, she’s clearly gambling with lives and livelihoods now in the horse racing and gambling sector.”

He continued: “This is a sector that contributes over £4bn in tax, around £7bn to GVA [gross value added] each year and adds around 109,000 jobs in the UK economy — in towns including Wigan, where the secretary of state Lisa Nandy is based, home to Tote.”

The shadow minister has been a long-term critic of Labour’s handling of the Gambling Review, previously using evidence hearings to condemn the Government’s inaction on implementing reforms benefiting casinos. 

He has also criticised Labour’s failure to review plans on deposit thresholds for UK gambling, describing the proposals as poorly structured by DCMS under the former Conservative government’s watch.

Once more,  the minister sounded the alarm for rural constituencies, warning that the proposed tax hike would disproportionately harm regional economies reliant on horse racing, betting shops, and local hospitality businesses.

A ‘low energy’ gig

Apart from French’s comments, no mention of gambling taxes was raised by other Conservative peers.

UK newspapers branded the Manchester gathering “the lowest-energy conference in living memory”, with many reports describing half-empty halls even during speeches by senior ministers.

Behind the scenes, party ranks remain divided on whether the Conservatives should consider an election pact with Reform UK, a move many fear would reshape the party’s identity entirely.

Yesterday’s headline speech came from Shadow Chancellor Mel Stride, who pledged that a future Tory Government would scrap business rates for the leisure and hospitality sectors. Stride blamed “catastrophic” tax rises for creating an “economic time bomb” that has left Britain poorer.

“Britain must live within its means,” he said. “But we must give people hope and optimism.”

From the same stage, Stride accused Nigel Farage of “marching to the left,” branding Reform UK “the party of more spending and more debt”.

However, within minutes of his speech concluding, reports emerged of backbench discontent, with MPs privately describing his remarks as “full of promise but empty of reality.”

Conference debates largely shifted toward leaving the ECHR, energy policy divisions, critiques of Reform’s left-wing fiscal stance, and attacks on Labour’s handling of antisemitism, particularly around BDS-linked council directives.

Yet, much focus was placed on the ever-present theme of senior ministers still apologising for the ‘micro budget’ of former PM Liz Truss, a disastrous affair that has cost the party its economic reputation. 

Kemi fights for ‘rural relevance’… but who is listening

The conference’s keynote speech from party leader Kemi Badenoch, drew intense attention amid growing rumours of an internal mutiny to remove her by the end of the year.

Badenoch faces a make-or-break period of her leadership in which she must convince members and the public that she remains relevant to the national conversation, as Nigel Farage continues to be heralded as the “voice of the right.”

Polls show that 15% of Conservative members believe an electoral wipeout is inevitable, with growing support for a Reform pact as a way to salvage the party’s prospects.

As a firm supporter of rural communities and the heritage sport of horseracing, Badenoch has previously urged the Treasury to rethink its stance on gambling taxation, stating:

“We need the Treasury to do more thinking. The most important thing is to ensure that horse racing stays here, it continues to thrive here, that we are the international beacon. We need to be the magnet for investment for growth. That’s what’s going to be most helpful and that’s where the Treasury should start from.”

She added: “It is a sport, it is entertainment, it is a way of life — it is much more than just playing cards or playing the National Lottery on a phone. We need to make sure that the policymakers who are pushing these things understand that distinction. Right now, they do not.”

In her positions as leader, Badenoch is expected to emphasise Conservative values of self-reliance, regional prosperity, and the defence of traditional industries, reaffirming her support for rural economies “left in the cold by Labour”— though she is not expected to take an outright stand against gambling tax increases, a stance that could risk deepening divisions within the party.