Treasury ignored DCMS gambling tax hike concerns before Budget raid
The Treasury proceeded with gambling tax increases despite warnings from the DCMS about potentially unrealistic revenue projections and negative consequences.Summary
The Treasury, under Chancellor Rachel Reeves, implemented significant gambling tax hikes in the Autumn Budget despite concerns raised by the Department of Culture, Media and Sport (DCMS). A Freedom of Information request revealed that DCMS analysis questioned the projected £2bn revenue estimate proposed by the Social Market Foundation and former Prime Minister Gordon Brown, deeming it “unrealistic” and warning of potential job losses and a boost to the black market. The Chancellor increased the remote gaming duty to 40% and introduced a 25% general betting duty. The Office for Budget Responsibility (OBR) estimated the new taxes would raise £1.1bn, significantly less than the Social Market Foundation’s projections. Concerns were also raised about the impact on horseracing without a corresponding increase to the Horse Racing Levy. The Betting and Gaming Council highlighted that the FOI release confirms DCMS shared industry concerns about the potential negative consequences of the tax increases, yet the Treasury proceeded regardless. The Treasury defended the reforms, stating they would raise over £1bn annually to fund key priorities.
(Source：City A.m.)