Could Higher Gambling Taxes Help Eradicate Child Poverty? Gordon Brown Thinks So!

Former Labour Prime Minister Gordon Brown has reignited the debate over child poverty in the UK, advocating for substantial tax increases on gambling to support the nation’s impoverished children. Brown’s push comes on the heels of a think tank report from the Institute for Public Policy Research (IPPR), which argues that a new gambling tax could generate around £3.2 billion, a sum that could be crucial in abolishing the controversial two-child limit and the benefit cap that currently affects 1.6 million children in the country.

Brown emphasized that taxing online gambling firms and slot machines would be pivotal in combatting child poverty, giving weight to his suggestion by highlighting the government’s role in the worsening crisis of child poverty, now at its highest since records began, surpassing levels seen during Thatcher and Major’s administrations. He condemns the two-child limit, which restricts financial support for families with more than two children, branding it an act of injustice that penalizes third and fourth children and leads to increased food insecurity.

The IPPR report proposed lifting taxes on online casinos from the current 21% to 50% and increasing rates for gaming machines from 20% to 50%. Many online gambling businesses are registered offshore and benefit from a range of tax exemptions, including being exempt from VAT. The report argues that these revisions would not deter overall government revenue and is a fair expectation from an industry that has been profiting significantly.

However, the Betting and Gaming Council rebuked the proposed tax increases, calling them “economically reckless,” and warned of the potential risks of driving gambling activities into the black market, which would undermine consumer protections and diminish tax revenue. They contended that further taxation, along with recent government reforms that have already put a strain on their revenue, could hurt the economy and negate potential benefits of the proposed measures.

As the UK prepares to unveil a child poverty strategy later this year, calls from charities and advocacy groups are intensifying for the abolition of harmful policies such as the two-child limit. Brown’s passionate plea urges Chancellor Rachel Reeves to adopt a straightforward decision for the budgeting, positioning taxing the gambling industry as a necessary social equity move.