{"id":324184,"date":"2025-08-07T03:30:16","date_gmt":"2025-08-07T03:30:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/324184\/"},"modified":"2025-08-07T03:30:16","modified_gmt":"2025-08-07T03:30:16","slug":"gordon-brown-calls-for-gambling-tax-to-cut-child-poverty","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/324184\/","title":{"rendered":"Gordon Brown calls for gambling tax to cut child poverty"},"content":{"rendered":"<p class=\"sc-9a00e533-0 hxuGS\">Former Labour Prime Minister Gordon Brown has repeated his call for higher taxes on gambling to lift half a million children out of poverty.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">He has backed a think tank report from the Institute for Public Policy Research (IPPR), saying the move could raise \u00a33.2bn to fund scrapping the two-child limit and benefit cap.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Brown, who was also chancellor under Tony Blair, said taxing online casinos and slot machines would be &#8220;the first crucial step in the war we must wage against child poverty&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">A spokesperson for the Betting and Gaming Council rejected the proposals, describing them as &#8220;economically reckless&#8221; and claiming they could push gamblers onto the black market.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The Department for Media, Culture and Sport has been contacted for comment. <\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The two-child limit and benefit cap affects 1.6 million children and is blamed for rising rates of food insecurity by <a target=\"_self\" href=\"https:\/\/www.bbc.co.uk\/news\/articles\/cn081lyqw44o\" class=\"sc-f9178328-0 bGFWdi\" rel=\"noopener\">anti-poverty campaigners<\/a>, who say getting rid of the cap is the &#8220;single most effective&#8221; step the chancellor could take to reduce child poverty.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The two-child limit restricts child tax credit and universal credit (UC) to the first two children in most households, while the benefit cap sees the amount of benefits a household receives reduced to ensure claimants do not get more than the limit.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The government is expected to publish a child poverty strategy in autumn, and children&#8217;s charities and campaign groups have been united in calling for the two-child limit to be scrapped.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Writing in <a target=\"_blank\" href=\"https:\/\/www.theguardian.com\/commentisfree\/2025\/aug\/06\/gambling-industry-profitable-tax-fight-child-poverty\" class=\"sc-f9178328-0 bGFWdi\" rel=\"noopener\">the Guardian<\/a>, Brown states: &#8220;Britain is now enduring the worst levels of child poverty since modern records began, even worse than in the Thatcher-Major years, and far worse than in most European countries&#8230;<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;These are austerity&#8217;s children, the victims of 14 years of Tory rule, an era whose most vindictive act was to treat newborn third and fourth children as second-class citizens, depriving them of all the income support available to their first and second siblings.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Flagging that child poverty is set to rise to &#8220;a wholly unacceptable&#8221; 4.8 million, Brown urges Chancellor Rachel Reeves to make &#8220;a straightforward budget choice&#8221; to raise taxes on online gambling companies to fund tackling child poverty.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The proposals focus on online gambling firms &#8211; the fast-growing part of the industry &#8211; and avoid any changes to bingo or lotteries. <\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The IPPR suggested increasing taxes on online casinos from 21% to 50% and raising those on <a target=\"_blank\" href=\"https:\/\/www.ippr.org\/articles\/reforming-gambling-taxation\" class=\"sc-f9178328-0 bGFWdi\" rel=\"noopener\">slots and gaming machines<\/a> from 20% to 50%.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Many online gambling firms are based offshore and pay little or no UK corporation tax, the IPPR report flags, and already benefits from unique tax advantages, including a complete exemption from VAT. <\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The IPPR said raising gambling taxes in the way they suggested would be unlikely to reduce overall government revenue.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Henry Parkes, principal economist and head of quantitative research at IPPR, said: &#8220;The gambling industry is highly profitable, yet is exempt from paying VAT and often pays no corporation tax, with many online firms based offshore. <\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;It is also inescapable that gambling causes serious harm, especially in its most high-stakes forms.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;Set against a context of stark and rising levels of child poverty, it only feels fair to ask this industry to contribute a little more.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">But a spokesperson for the Betting and Gaming Council said they rejected the &#8220;economically reckless, factually misleading&#8221; proposals which they insisted &#8220;risk driving huge numbers to the growing, unsafe, unregulated gambling black market, which doesn&#8217;t protect consumers and contributes zero tax&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">They added: &#8220;Further tax rises, fresh off the back of government reforms which cost the sector over a billion in lost revenue, would do more harm than good &#8211; for punters, jobs, growth and public finances.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Former Labour Prime Minister Gordon Brown has repeated his call for higher taxes on gambling to lift half&hellip;\n","protected":false},"author":2,"featured_media":324185,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[13,12,14],"class_list":{"0":"post-324184","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-headlines","9":"tag-news","10":"tag-top-stories"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114985371127323072","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/324184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=324184"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/324184\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/324185"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=324184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=324184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=324184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}