Bacta demands fair tax policies ahead of UK budget

Bacta, the UK trade body for low-stakes entertainment, has posted a letter co-signed by 120 independent businesses demanding that Chancellor of the Exchequer John Healey retain the Machine Games Duty (MGD) at 20%. Healey will announce the country’s budget tomorrow, 28 October, with a hike in MGD having been rumored for months now. What will be the new rate remains a speculative topic, with some expecting it to climb to 25%, while others fear a doubling to 40%. This has prompted the UK gambling sector to launch a coordinated lobbying campaign against the increase, arguing that thousands of land-based betting jobs will be put at risk.Bacta has remained relatively quiet compared to the rest of the industry, deciding to dish out its biggest pushback mere hours prior to Healey’s decision with its own letter. All 120 co-signers, which include operators and family businesses, warn that an increase in MGD would put their venues into a legislative trap, due to the fact that stake and prize levels are capped by law and cannot be raised by operators to mitigate rising costs. These costs, the letter continues, have already been heightened by spikes in energy bills, commercial rents, wage inflation and increased National Insurance contributions for employers. What’s more, Bacta members also noted that they pay Value Added Tax (VAT) on the services they offer, with non-recoverable VAT reaching £56m in 2025 – having a direct impact on the available capital to reinvest into businesses. Instead of the government’s agenda to raise growth for every postcode, the letter warned that further increases to MGD will trigger the complete opposite effect, affecting an entire supply chain from cleaning and security firms, to food and beverage suppliers, taxi firms, and professional services should venues be forced to close as a result. Bacta has also warned of jobs being lost in areas with historically limited work opportunities. Demanding a fair tax policy, Joseph Cullis, President of Bacta, added: “The letter which has been signed by more than 100 independent, family-run businesses from across the amusement, bingo and leisure industries, alongside the manufacturers and suppliers that support them, confirms the impact a rise in MGD will have on these invaluable community-based assets. “They provide thousands of jobs, support local economies and are at the heart of high streets and seaside communities across the country. “An increase in Machine Games Duty would put jobs, livelihoods and the future of longstanding family businesses at serious risk. For some, it could be the final straw. “We recognise the difficult decisions facing the Treasury, but we urge the Chancellor to consider the real-world consequences of such an increase. Once these businesses close, the jobs, investment and contribution they make to their communities will be extremely difficult to replace.”