Reeves Leaves Door Open To Gambling Tax Rise In Autumn Budget
Rachel Reeves left the door available to an increase in gambling taxes after Gordon Brown urged her to raise levies to cover the expense of lifting the two-child advantage cap.
The Chancellor stated she was "deeply worried" about child hardship as she dealt with questions about the previous prime minister's proposal to increase duties for online gambling establishments and slot makers to reform.
Asked whether she was considering Mr Brown's idea, Ms Reeves said she had actually spoken to him last week and would set out Government policy in the fall spending plan.
Gordon Brown said gambling taxes need to be raised to fund welfare reform (Dominic Lipinski/PA)
"So I talk to Gordon routinely, and saw him recently when I was in Scotland," she said.
"Like Gordon, I am deeply worried around the levels of child poverty in Britain. No child must mature starving or parents not be able to afford the basics for their family.
"We're a Labour Government. Of course, we care about kid hardship. That's why one of the very first things we did as a federal government was to set up a child poverty task force that will be reporting in the autumn and (will) respond to it then."
She added: "On gaming taxes, we have actually already introduced a review into betting taxes. We're taking proof on that at the moment, and once again, we'll set out our policies in the typical method, in our spending plan later on this year."
Reforms to gambling levies might generate the ₤ 3.2 billion needed to scrap the two-child limit and advantage cap, the Institute for Public Law Research (IPPR) said.
The think tank's latest research study stated axing the policies could raise half a million kids out of poverty and "reverse years of increasing challenge for low-income families".
Giving his support to the report, Mr Brown, a picture of whom Ms Reeves supposedly kept in her bed room as a trainee, said it would be the "very first essential action in the war we must wage versus child poverty".
The Government is anticipated to release a child poverty method in the autumn, and campaign groups have said it must include a commitment to abandon the two-child limitation.
Thanks to IPPR's report, we now know that taxing gambling more relatively would totally money the very first important action in the war we must wage against kid hardship - ending the two-child limitation and raising the benefit cap
Gordon Brown
Economists have cautioned tax rises in the fall are most likely needed to plug a hole in the public finances left by bad financial figures and U-turns on well-being, triggering speculation about which locations Ms Reeves might target.
The IPPR recommended increasing taxes on online casinos from 21% to 50% and raising those on slots and video gaming devices, from 20% to 50%.
Mr Brown included: "Thanks to IPPR's report, we now know that taxing betting more relatively would fully fund the very first essential action in the war we need to wage against kid hardship - ending the two-child limitation and raising the advantage cap."
Labour Mayor for the Liverpool City Region Steve Rotheram loaded further pressure on the Chancellor later on Thursday, stating that raising 500,000 kids out of poverty ought to be "a nationwide objective".
"Gordon is area on," he said. "The Government has a real chance to act now and change young lives throughout the country."
Gordon is area on - lifting 500,000 children out of hardship need to be a nationwide mission.
The federal government has a real chance to act now and change young lives across the country.
Let's get this done. https://t.co/JQY3K0jFxp
- Steve Rotheram (@MetroMayorSteve) August 7, 2025
But a representative for the Betting and Gaming Council turned down the "economically reckless, factually misguiding" propositions which "danger driving big numbers to the growing, risky, unregulated betting black market, which does not safeguard customers and contributes zero tax".
They included: "Further tax increases, fresh off the back of Government reforms which cost the sector over a billion in lost revenue, would do more damage than excellent, for punters, jobs, development and public financial resources."