Labour’s decision to increase taxes on online gambling has been defended by a top minister who emphasized that the move is not aimed at taking the fun out of the activity. Dan Tomlinson, the Exchequer Secretary, dismissed criticisms regarding the tax hikes on remote gambling, which are expected to boost government revenue 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 the tax increases do not apply to horse racing, bingo halls received a positive surprise as the 10% duty on the game was removed. During a visit to BuzzBingo in Tooting, Mr. Tomlinson emphasized the safety and enjoyment of bingo as a non-harmful form of gambling, contrasting it with the potential risks associated with online gambling.
In response to concerns about taxing fun, Mr. Tomlinson highlighted the abolition of bingo duty, protection of horse racing, and the freezing of fuel duty for an additional six months. He reassured the public that the government aims to alleviate financial burdens, mentioning the upcoming energy bill reduction and other initiatives designed to support families.
Activities like bingo were noted for their role in combating loneliness, especially for older individuals living alone. Despite the tax relief for bingo operators, challenges persist due to rising costs and competition, leading to a decline in the number of bingo halls from 335 before the pandemic to 247.
Mr. Tomlinson also discussed the positive impact of increasing the minimum wage, emphasizing the potential benefits for local economies as workers have more disposable income to spend in their communities. Additionally, he addressed concerns about business rates and outlined government efforts to support enterprises facing significant bill increases through a comprehensive support scheme.
Efforts to rebalance the system include adjusting rates for high street properties while imposing higher taxes on online retailers with large warehouses. The discussion coincided with tensions between pub landlords and Labour MPs over tax policies, with Mr. Tomlinson acknowledging the advocacy of MPs for supporting local businesses and high streets.
The government’s commitment to protecting businesses from substantial valuation increases was reiterated, reflecting an ongoing effort to address concerns raised by various sectors affected by tax changes.