Reeves Leaves Door Open To Gambling Tax Rise In Autumn Budget
Rachel Reeves left the door open up to an increase in gaming taxes after Gordon Brown advised her to raise levies to cover the expense of raising the two-child advantage cap.
The Chancellor stated she was "deeply worried" about child hardship as she faced concerns about the previous prime minister's proposition to increase responsibilities for online casinos and fruit machine to money welfare reform.
Asked whether she was considering Mr Brown's idea, Ms Reeves stated she had actually spoken with him last week and would set out Government policy in the fall budget plan.
Gordon Brown taxes should be raised to fund welfare reform (Dominic Lipinski/PA)
"So I talk with Gordon regularly, and saw him last week when I was in Scotland," she stated.
"Like Gordon, I am deeply concerned around the levels of child hardship in Britain. No child should grow up starving or moms and dads not be able to afford the basics for their family.
"We're a Labour Government. Naturally, we care about kid poverty. That's why one of the first things we did as a government was to set up a child poverty job force that will be reporting in the autumn and (will) react to it then."
She added: "On gambling taxes, we have actually currently launched a review into gambling taxes. We're taking evidence on that at the minute, and again, we'll set out our policies in the typical method, in our spending plan later on this year."
Reforms to gambling levies could create the ₤ 3.2 billion needed to ditch the two-child limit and benefit cap, the Institute for Public Policy Research (IPPR) stated.
The think tank's most current research study said axing the policies could raise half a million kids out of poverty and "reverse years of rising challenge for low-income families".
Giving his support to the report, Mr Brown, a picture of whom Ms Reeves apparently kept in her bedroom as a student, stated it would be the "first crucial action in the war we should wage versus child hardship".
The Government is expected to release a child hardship method in the fall, and campaign groups have actually stated it should include a commitment to desert the two-child limit.
Thanks to IPPR's report, we now know that taxing gambling more fairly would fully fund the very first vital action in the war we need to wage against child poverty - ending the two-child limit and lifting the benefit cap
Gordon Brown
Economists have warned tax increases in the fall are likely required to plug a hole in the public finances left by bad economic 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 gaming makers, from 20% to 50%.
Mr Brown added: "Thanks to IPPR's report, we now understand that taxing gambling more relatively would completely fund the very first essential step in the war we must wage versus kid hardship - ending the two-child limitation and raising the benefit cap."
Labour Mayor for the Liverpool City Region Steve Rotheram heaped more pressure on the Chancellor later on Thursday, stating that raising 500,000 children out of hardship should be "a national objective".
"Gordon is area on," he said. "The Government has a real opportunity to act now and change young lives across the country."
Gordon is area on - raising 500,000 children out of hardship should be a national objective.
The government has a real chance to act now and change young lives across the nation.
Let's get this done. https://t.co/JQY3K0jFxp
- Steve Rotheram (@MetroMayorSteve) August 7, 2025
But a representative for the Betting and Gaming Council rejected the "economically careless, factually misguiding" proposals which "threat driving big numbers to the growing, risky, uncontrolled betting black market, which does not secure consumers and contributes absolutely no tax".
They included: "Further tax increases, fresh off the back of Government reforms which cost the sector over a billion in lost income, would do more damage than excellent, for punters, jobs, growth and public finances."