Labour’s decision to increase taxes on online gambling has been defended by a senior government official. Dan Tomlinson, the Exchequer Secretary, dismissed criticism of the tax hike on remote gambling, which is projected to generate an additional £1.1 billion for the government by 2029/30. In the recent Budget announcement, Chancellor Rachel Reeves targeted online betting to address issues related to problem gambling, with the remote gambling duty set to rise from 21% to 40% starting in April 2026.
While online gambling faced tax increases, horse racing was exempted, and bingo halls received a boost by the elimination of the 10% duty on the game. During a visit to BuzzBingo in Tooting, Mr. Tomlinson emphasized the safety and enjoyment of activities like bingo, contrasting it with the potential risks of online gambling. He clarified that the government’s measures were aimed at safeguarding fun activities such as bingo, horse racing, and outings like zoo visits, theme park trips, or cinema visits, by freezing fuel duty for an additional six months and providing a £150 reduction in energy bills in the upcoming spring.
Mr. Tomlinson refuted claims that the government was taxing fun, highlighting the social benefits of activities like bingo in combating loneliness, especially among older individuals. Despite the tax relief, bingo operators still face challenges due to rising costs and competition, leading to a decline in the number of bingo halls in the country.
The increase in the minimum wage was described as a positive step by Mr. Tomlinson, emphasizing its dual benefit of providing fairer wages to workers and boosting local economies through increased consumer spending. Addressing concerns about business rates, he assured support for businesses facing rising costs, with measures in place to cap bill increases at £800 or 15% for most businesses this year and providing over £4 billion in support over the next three years.
Efforts are underway to rebalance the taxation system by reducing rates for high street properties like retail, hospitality, and leisure while imposing higher taxes on online businesses with large warehouses. The government’s commitment to supporting high streets, pubs, and the hospitality sector was reiterated, acknowledging the advocacy of Labour MPs in representing their communities’ concerns and ensuring protections for businesses from significant valuation increases in the recent Budget.
