Chancellor Rachel Reeves is facing mounting criticism as she prepares to address a private gathering of gambling industry lobbyists next month, while her Treasury department conducts a comprehensive review of the sector's taxation that could potentially save companies up to £12 billion.
The event, organised by the Betting and Gaming Council, is scheduled for October 8th at London's five-star Langham hotel. This comes at a particularly sensitive time, with the Treasury actively examining the controversial point of consumption tax on online gambling revenues.
Timing Raises Eyebrows in Westminster
Political opponents and transparency campaigners have questioned the Chancellor's decision to speak at the event while her department is considering significant tax changes that would directly benefit the industry hosting her.
Liberal Democrat Treasury spokesperson Sarah Olney MP didn't mince words: "The timing stinks. The Chancellor shouldn't be wining and dining with gambling giants while deciding on a tax cut that would hand them billions."
What's at Stake in the Tax Review
The Treasury's review focuses on the point of consumption tax, currently set at 21% of gross gambling yield for online operators. The industry has long argued this rate is unsustainable and makes UK operators less competitive against offshore rivals.
A reduction to 15% – the rate applied to brick-and-mortar betting shops – would represent a massive £12 billion saving for gambling companies over the current parliament, according to Treasury estimates.
Government Defends Engagement
A Treasury spokesperson defended the Chancellor's participation, stating: "It's right that the Chancellor engages with key sectors of the British economy. All our tax decisions are made in the round and in the best interests of the country's finances."
The Betting and Gaming Council emphasised their role as a "regulated industry that supports 110,000 jobs and contributes £4.2 billion to the economy" while noting they pay approximately £1 billion in taxes annually.
Growing Concerns Over Industry Influence
This incident follows recent controversies around political donations from gambling industry figures to senior Labour figures, including £50,000 to Deputy Prime Minister Angela Rayner's office refurbishment fund from Kindred Group, which owns several major betting brands.
As the Treasury's tax decision looms, all eyes will be on whether this high-profile engagement influences what could be one of the most significant financial decisions affecting both the industry and public finances in this parliamentary term.
