Football legend Michael Owen and renowned music figure Sir Andrew Lloyd Webber are part of a group of celebrities who have penned a letter to the Treasury requesting the abandonment of any proposed increase in betting tax. Despite some advocating for the additional funds to combat child poverty, Owen and others argue that such a move would harm the horse racing industry and jeopardize thousands of jobs. Former Prime Minister Gordon Brown has recently advocated for the tax hike to help alleviate child poverty, suggesting that it could generate £3.2 billion to lift 500,000 children out of poverty.
In an exclusive interview in August, Brown emphasized the detrimental impact of deep poverty on British children, warning that millions of youngsters could face severe living conditions by the end of the decade. Brown endorsed proposals from the IPPR think tank to impose targeted tax increases on highly profitable sectors of the industry, such as online casinos and slot machines. Over 360 industry leaders have joined forces to express their concerns in an open letter. Owen, a former Ballon d’Or recipient and ex-Liverpool striker who now owns a racing club in Cheshire, highlighted the potential damage that proposed gambling tax harmonization could inflict on British racing.
Five-time champion jockey Oisin Murphy echoed concerns about the potential repercussions of gambling tax harmonization on the sport, emphasizing the financial implications for jockeys reliant on racehorse owners. Top trainer Paul Nicholls urged the Treasury to carefully consider the unintended consequences of any tax increases on the industry. The collective letter urged Rachel Reeves to reconsider merging betting and gaming taxes into a single Remote Betting and Gaming Duty, which would align the tax rate with that of casino and slot games.
Betfred recently warned of the closure of 1,272 shops and 7,500 job losses if the tax increase is implemented. Owner Fred Done expressed significant apprehension about the potential impact on the industry. Despite the opposition from industry figures, Brown previously advocated for higher taxes on the gambling sector, emphasizing the potential benefits for children in need. The Treasury clarified that the tax hike would specifically target remote gambling, reassuring that the horse racing sector, a cultural staple, would maintain its government-mandated levy and tax break for race betting.
Overall, industry stakeholders are engaged in a heated debate over the proposed tax adjustments, with conflicting views on the potential outcomes for both the gambling industry and efforts to combat child poverty.