Budget: online gambling tax “a missed opportunity” for fairer NHS and care funding, say Lib Dems

Thursday, 31 October 2024 16:34

Liberal Democrat Leader Ed Davey is calling on the Government to double the tax on online gambling firms as a “much fairer” way to raise money for the NHS and social care. According to analysis by the Social Market Foundation, published before the Budget, doubling the rate of Remote Gaming Duty would raise between £575 million and £900 million a year, depending on how much the higher rate reduces online gambling. This is far more than the Treasury expects to raise by...Request free trial

Liberal Democrat Leader Ed Davey is calling on the Government to double the tax on online gambling firms as a “much fairer” way to raise money for the NHS and social care.

According to analysis by the Social Market Foundation, published before the Budget, doubling the rate of Remote Gaming Duty would raise between £575 million and £900 million a year, depending on how much the higher rate reduces online gambling. This is far more than the Treasury expects to raise by cutting inheritance tax relief for family farms.

There was speculation that the Chancellor might increase the duty in the Budget, but she did not make any changes to gambling taxes. Instead, the Budget only announced a consultation on “proposals to bring remote gambling into a single tax … to simplify, future-proof and close loopholes in the system."

Online gambling revenues increased to £6.5 billion in 2022-23, according to figures from the Gambling Commission. Around 300,000 adults in Britain experience problem gambling, as well as roughly 40,000 children.

Public Health England has estimated that gambling costs the UK economy around £1.4 billion a year, through a combination of financial harms and the impact on physical and mental health, employment, education and crime.

Ed Davey, Leader of the Liberal Democrats, said:

“Hundreds of thousands of lives have been devastated by problem gambling – now driven mainly by online casino-style games.

“This Budget was a missed opportunity to double Remote Gaming Duty, combating the harms of problem gambling while raising money for our NHS and social care. This would have been much fairer than hitting hardworking families, small businesses and family farms.

“Instead, the Government has kicked the can down the road again. Liberal Democrats will continue to urge Ministers to stop dithering and act now, before more lives are ruined.”

ENDS

Notes to Editors:

Around 300,000 adults in Britain experience problem gambling, and another 1.8 million are at risk. [2023 white paper].

According to Public Health England:

Gambling costs our economy around £1.4 billion a year – through a combination of financial harms and the impact on physical and mental health, employment, education and crime.

The UK gambling sector had revenues of £15.1 billion in 2022-23. Nearly half that (£6.5bn) came from online gambling. [Gambling Commission].

Doubling the rate of RGD would raise between £575 million and £900 million a year, according to the Social Market Foundation (SMF).

40,000 British children experiencing a gambling problem data is based of Gambling Commission stats that say 0.7% of 11-17 year-olds experience a gambling problem.