‘It is not easy being Chancellor’

The Government’s vast majority meant Rachel Reeves’ Finance Bill passed its final Commons reading this week without the political gridlock and chaos that often accompany budget processes in the US.

Too many media outlets, conflicted by commercial interests, oppose taxes on businesses. The public feels the pain of some tax increases, and vested interests use this to turn people against all taxes, even those on harmful trades that will bolster the public purse.  

Polling has shown that higher online gambling taxes are supported by the majority of the public. It’s not surprising when you consider 1.4 million people in the UK are struggling with gambling harms, with millions more affected indirectly. But some tabloids recently opposed the plan to increase gambling duty, with messaging perfectly aligned with trade lobbyists, the Betting and Gaming Council (BGC), whose members have commercial relationships with these outlets. 

READ MORE: Reeves bets on patience over populism

The red-top outrage was over an FOI disclosure of pre-Budget communications from the Department of Culture, Media and Sport (DCMS) to the Treasury warning that tax increases could reduce gambling spend or drive people to the illegal market. Embarrassingly for DCMS, this analysis exactly echoed the flawed arguments of the BGC. 

It was also clearly based on flimsy assumptions, as the Social Market Foundation’s (SMF) Dr. James Noyes pointed out on X after seeing the FOI bundle. Noyes is familiar with these tactics, being the author of SMF reports on gambling taxes. 

Attacks on gambling taxes have not just come from the media, but also from inside the Commons. Gareth Snell, the Labour MP for Stoke-on-Trent, the home of the UK’s biggest gambling firm Bet365, raised amendments in the Finance Bill, supported by the Tory Shadow Treasury team led by Mel Stride. 

One proposal was to ask for an impact assessment of the tax increase on the black market, ignoring that many other factors influence it, including the recent revelation that AI chatbots are driving people to illegal gambling sites. 

The other proposed amendment was to ask for an impact assessment of the tax increase on the Gibraltar economy. If MPs cared as much about their constituents as they do offshore interests, we would have an impact assessment of how much online gambling from Gibraltar has harmed the UK economy.

Subscribe here to our daily newsletter roundup of Labour news, analysis and comment– and follow us on TikTok, Bluesky, WhatsApp, X and Facebook.

Rising Labour star Alex Ballinger was a voice of reason in opposition to Snell in the debate. He argued that the ‘black market’ argument is routinely used by harmful industries to avoid regulation, and that the gambling black market threat is overblown, especially as previous gambling tax increases have not led to any illegal gambling surges.

Exchequer Secretary to the Treasury, Dan Tomlinson MP, duly rejected the proposed amendments, exposing the lack of merit of performance politics. 

Share your thoughts. Contribute on this story or tell your own by writing to our Editor. The best letters every week will be published on the site. Find out how to get your letter published.

With Labour not certain to have a majority at the next general election, and coalition a possibility, it is imperative that there is centralised policy that overrides narrow interests, preventing departmental infighting and legislative gridlock. Helping the Chancellor to deliver what is best for the country, not helping harmful sectors avoid taxes, should be a priority.   

• • SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
  • SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
  • DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage.
  • PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
  • ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].