No tax hikes for UK Gambling in 2024 Budget, Chancellor Rachel Reeves confirms

IN her inaugural Budget speech as Chancellor, Rachel Reeves confirmed that there will be no increase in taxes for the UK gambling sector in 2024.

The announcement marked the first fiscal policy set by a female Chancellor and the Labour Party’s first Budget in 14 years.

Ahead of the Budget, the Treasury had received calls from think tanks, including the Institute for Public Policy Research (IPPR) and the Social Market Foundation (SMF), to introduce higher taxes on UK gambling.

The SMF, in particular, had urged the government to more than double taxes on online gambling, raising rates from 21% to 42%, which it claimed could generate an additional £1 billion annually.

The Foundation argued that such a move would align with public opinion, citing that “over half of Britons support increasing tax on online gambling.”

Similarly, the IPPR recommended higher taxes on high-risk gambling activities, such as online casino games, slots, and sports betting.

However, the Chancellor’s Budget statement confirmed that gambling tax rates would remain unchanged.

The current system of tiered duties — ranging from 15% to 50% for land-based gaming and 21% for remote gambling — will remain in place.

The decision was welcomed by the Betting and Gaming Council (BGC), whose CEO, Grainne Hurst, praised the Chancellor for not raising gambling duties.

Hurst said: “We welcome today’s budget and its commitment to not increase gambling duties on the regulated betting and gaming sector.

“We have been clear, any duty rises now would have hit customers, prevented growth, risked jobs and bolstered the unsafe, unregulated gambling black market. The Government has listened to the BGC and our members, got the balance right, and rejected calls from anti-gambling prohibitionists seeking to threaten jobs and growth.”

Reeves used her address to directly criticise the previous Conservative government, accusing former Chancellor Jeremy Hunt and outgoing Prime Minister Rishi Sunak of failing to address a £22 billion financial shortfall in the UK’s public finances.

The Chancellor emphasised the need to raise £40 billion in tax revenue to secure the economy and fund the government’s plans to improve public services.

She also reiterated that the Treasury had carefully reviewed contributions from all sectors, acknowledging that the Labour government faced “tough choices” ahead.