Labour is defending its decision to increase taxes on online gambling, with a senior minister rejecting claims that the move is dampening the enjoyment of online betting. Dan Tomlinson, the Exchequer Secretary, dismissed criticisms of the tax hikes on remote gambling, which are expected to boost government revenue by an additional £1.1 billion by 2029/30. In the recent Budget announcement, Chancellor Rachel Reeves targeted online betting to address issues related to problem gambling, with the remote gambling duty set to rise from 21% to 40% starting in April 2026.
While the tax increases spared horse racing, bingo halls received a positive boost with the surprise elimination of the 10% duty applied to the game. During a visit to BuzzBingo in Tooting, Mr. Tomlinson emphasized the safety and harmless nature of bingo as a form of gambling, contrasting it with the higher risks associated with online gambling. He highlighted the protections in place for online gambling but stressed the importance of traditional forms of entertainment that bring people together for fun and socialization.
Mr. Tomlinson refuted claims that Labour is targeting fun, citing the abolishment of bingo duty, protection of horse racing, and the freezing of fuel duty for an additional six months. He reassured families of a fuel duty freeze during the upcoming Christmas period to help alleviate financial burdens. Additionally, he mentioned the expected reduction in energy bills next spring to further support households. When asked if the government was taxing fun, he firmly denied the assertion.
Acknowledging the social benefits of activities like bingo in combating loneliness, especially among older individuals living alone, Mr. Tomlinson highlighted the importance of supporting such forms of entertainment. However, despite the tax relief, bingo operators are facing challenges from rising costs and competition, leading to a decline in the number of bingo halls from pre-pandemic levels.
The government’s decision to increase the minimum wage was lauded as a positive development, ensuring fairer wages for workers while boosting local economies as consumers spend more in their communities. Mr. Tomlinson underscored the government’s commitment to supporting businesses facing challenges, particularly with business rates revaluation coinciding with the end of Covid-era support measures. Efforts are being made to rebalance the system by reducing rates for high street properties like retail, hospitality, and leisure while increasing taxes on online corporations with large warehouses.
Amid tensions with pub landlords who have been barring Labour MPs in protest against tax rates, Mr. Tomlinson emphasized the government’s dedication to supporting high streets, pubs, and the hospitality sector. He highlighted the importance of engaging with businesses to address concerns and ensure adequate support, particularly through measures introduced in the recent Budget to shield businesses from significant valuation increases.
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