Tories: Reeves gambling tax hike raises risk of black market betting
The Conservatives have warned of a rise in black market betting if Labour levies a tax on gamblers to fill Treasury coffers.
The Government is increasingly looking like it will need to find tax rises to announce at Chancellor Rachel Reeves’ autumn Budget, with punters on the front line to be hit hard by No11.
Treasury proposals would see changes in how bookmakers are taxed, upping the amount they are charged on racing – 15 per cent – to match the amount paid by firms operating online gambling – 21 per cent.
Horseracing has reacted to proposed tax hikes, however, choosing to rearrange a number of low-level mid-week racing meets.
Four fixtures scheduled for 10 September at Carlisle, Uttoxeter, Lingfield Park, and Kempton Park have been shifted by the British Horseracing Authority with the governing body insisting the tax changes would have a “destructive impact” on the industry, estimating a loss of £330m in revenue and putting over 2,500 jobs at risk over the first five years.
Former Prime Minister and chancellor Gordon Brown – backed by the Institute for Public Policy Research – separately argued that raising levies on online gambling machines could raise over £3bn.
Gambling tax shortsighted
But Tory shadow sport minister Louie French has hit out at the “shortsighted” Government, calling on them to axe the racing tax before punters head to the betting “black market”.
“The unprecedented move to cancel racing on the 10 September highlights the urgency for the Government to change course and axe the proposed racing tax,” he told Morning Wire.
“Rather than backing British racing and positive reforms that will unlock inward investment to our much loved sport, the Government’s latest tax proposals will further fuel the black market, hurting jobs, punters and racing in the process.”
French insists the opposition are against the bill and states that the proposed tax rises on sports betting demonstrates a “lack of understanding of how the racing economy works”.
“It is a further threat to Britain’s rural economy following the grossly unfair farmers’ tax and the jobs tax,” he added.
The BHA says the horseracing industry is worth £4.1 billion to the UK economy and supports 85,000 jobs.