Gordon Brown's call for a targeted tax on the gambling industry to tackle child poverty has drawn support from Labour MPs and campaigners, who argue the sector's low tax rate and social harms justify reform. The former prime minister's proposal, published in a recent article, suggests taxing excessive profits to fund public services and reduce child poverty.
Labour MPs Alex Ballinger and Dr Beccy Cooper highlighted that the £11.5bn gambling sector benefits from VAT exemptions and pays just 21% tax, far below the 35%-57% rates in Western Europe and the US. They noted that harmful products like cigarettes and alcohol are taxed at up to 80%, while gambling-related harms cost the NHS and other services over £1bn annually. The MPs urged the government to resist industry lobbying and implement the tax in the next budget.
William Bartram of Hampton, London, called for a full advertising ban on gambling, similar to tobacco restrictions under Brown's government. He argued that new customer incentives are 'obscene' and that the industry would adapt, as tobacco did.
However, Tim Harrison of London cautioned that Brown's proposals could harm horse racing, a distinct form of gambling from online slots. He noted that Brown, as chancellor, deregulated the gambling industry, leading to casinos and slot machine arcades in seaside resorts and city centres. Harrison warned of unintended consequences and doubted the tax would alleviate poverty.
Shelagh Young of Edinburgh pointed out that Scotland has reduced child poverty through its Scottish child payment of £27.15 per week per child, despite the two-child benefit cap. She criticised the UK government for failing to learn from Scotland's approach.
