UK Budget reaction shows stark political divide on gambling matters

Reaction from both ends of the political spectrum has been pouring in following Chancellor of the Exchequer John Healey’s decision to increase a gambling tax in his first Budget. Healey, serving as Chancellor in the cabinet of Labour Prime Minister, Andy Burnham, made the decision to hike Machine Games Duty (MGD) from 20% to 25% on Category B gaming machines. Those in favour… Ardent gambling reform lobbyist and Labour MP for Halesowen, Alex Ballinger, backed the decision, saying that “gambling can devastate lives” and therefore “the Chancellor is right to act”. Ballinger once again positions the tax increase as something that will somehow, miraculously, lead to a reduction in gambling harm. “I warmly welcome the Chancellor’s decision to increase the standard rate of Machine Games Duty from 20% to 25% on high-harm machines, as well as excluding adult gaming centres from business rates relief,” he wrote. “These are important steps towards putting our communities first and ensuring the tax system better reflects the risks posed by rapid-play, addictive machines. “Gambling can devastate lives, tear families apart and leave communities bearing the cost. The Chancellor is right to act – supporting our high streets should mean backing local businesses that help them thrive, not serving the interests of the gambling industry. “We must now build on today’s progress with stronger protections.” Other politicians who have been vocal opponents of the gambling industry were disappointed that the Chancellor did not go further, however. Green Party Leader, Zack Polanski, for instance, claimed that the Budget was “soft” and “a betrayal of young people. Polanski also noted that the price of gambling stocks actually increased despite the MGD rise. He said: “We got a budget that was tinkering around the edges. Business as usual. Whether that was on energy bills, refusing to bring in rent controls to tackle unaffordable rents, and on banks and gambling companies, this budget was so soft that their shares rose before the Chancellor even sat down.” Unsurprisingly, Labour MP for Brent, Dawn Butler, welcomed the decision to increase a tax on gambling. Like Ballinger, Butler is a long-time advocate for tougher gambling reforms. The MP has been particularly focused on matters relating to the high street, often raising concerns about the presence of adult gaming centres (AGCs) in deprived areas of the UK. She too, however, stated that the increase could have been more stringent. “Those of you who follow me in my work know I have been working on this for many, many years. So I’m really pleased that the gambling tax has been increased from 20% to 25%, but frankly, it could’ve gone further,” Butler wrote. “We were after 40%, so it could’ve gone a bit further, but I am pleased. It’s a step in the right direction and that money will be used to help other businesses. Basically, we’re taxing harm to help good business.” …and those against There were many on the side of the gambling industry, however. Joining protests against tax rises with a plethora of gambling operators and the industry’s trade body, the Betting and Gaming Council (BGC), were MPs including Shadow Minister for Culture, Media and Sport, Louie French, and Reform UK Leader, Nigel Farage. For years now, Farage has positioned Reform UK as a party on the side of the gambling sector. This falls in line with the party’s wider approach to economics, being generally in favour of light regulations. He has previously claimed that his party would be the only one which would “protect your right to stick a harmless tenner on a football match”. As such, he was predictably critical of measures announced by Healey yesterday. Farage said in Reform UK’s Budget Response: “Betting shops are in big, big trouble, and it seems that Burnham hates betting shops. “If betting shops are in as big a trouble as I think, then the British horse racing industry is in even bigger trouble and horse racing is a very, very big part of rural life. “And so I worry that taxes like this actually become self-defeating.” Farage also added that the taxes do three things – create more empty shops on the high street, damage the racing industry and drive punters towards the black market. French vented his frustration in the Racing Post, also calling on the black market argument. As Shadow Minister for Culture, Media and Sport, he has obvious concerns about the impact that any gambling tax hike could have on sports in the UK. “Cheered on by the Liberal Democrats, the chancellor has announced a further tax hike on gambling, which will likely damage British racing, jobs, and sponsorship of sports,” he stated. “The Treasury were warned that their tax hikes will only serve to fuel the illegal black market, which is a lose-lose for consumers, government and sport. Labour has given up on British racing and rural communities.” ‘My way or the highway’ mentality needs to be binned in gambling debate So, as expected, the MGD rise has divided opinion amongst just about everyone in politics. While the industry may be in the right to feel aggrieved by yet another tax increase, it may have to be careful about which politicians it sides with at a time when British politics is highly divisive. There simply has to be a middle ground reached between the two opposing sides in the near future, which can help to encourage more coherent conversation and potentially stand the gambling sector in better stead when it comes to public debates. For now, there continues to be a complete divide where individuals and organisations on both sides are refusing to back down, to the aid of but a few people.