Government's Proposed Betting Tax Hike Warned to Harm Industry and Jobs ###

The Sun is calling on Chancellor Rachel Reeves to abandon plans that could impose a substantial tax increase on the betting industry. The proposed changes could lead to the closure of hundreds of high street bookmakers, resulting in thousands of job losses and impacting the funding of popular sports.

The potential tax hike, which could be as high as 138 percent, is expected to be announced in the upcoming budget. This move, driven by left-wing think tanks and anti-betting activists, aims to increase revenues but could have severe unintended consequences. The betting industry, already contributing £4 billion in taxes, plays a crucial role in supporting various sports and local communities.

Experts caution that higher taxes will not only affect consumers by reducing odds and prize money but also drive more punters towards the illegal black market. This unregulated sector poses significant risks and generates no tax revenue for the government. Currently, bookmakers are heavily regulated and invest tens of millions in safer gambling initiatives and harm prevention, unlike the dangerous and unregulated black market.

The potential impact on the high street is also a major concern. Hundreds of bookmaking shops could shut down, leading to job losses and further deterioration of already struggling local economies. Towns like Stoke, Manchester, and Sunderland, which rely on the betting industry for employment, would be particularly hard hit.

Sports such as horse racing, football, and rugby league, which receive substantial sponsorship from the betting industry, could also suffer. The industry provides around £350 million annually to British horseracing, £40 million to football's EFL, and £12.5 million to other sports. A reduction in this funding could push some clubs to the brink of collapse.

Think tanks like the Social Market Foundation and the Institute for Public Policy Research (IPPR) are advocating for a 50 percent tax rate on online gaming, up from the current 21 percent. Similarly, the tax on online sports betting could rise from 15 percent to 25 percent. Major bookmakers like Betfred have already warned that such increases could force them to close their 1,300 betting shops, risking nearly 7,000 jobs.

The proposed tax hike is seen as a move to fill a £30 billion budget deficit, but it comes with significant economic and political risks. Racing tracks, many located in Labour-held constituencies, are already facing potential closures, and a strike last month highlighted the industry's concerns. Betting shops are widespread, providing high-tech jobs in key constituencies, including Leeds, where Chancellor Reeves is an MP.

The Sun argues that the tax increase would disproportionately affect working-class voters who have already experienced financial hardship due to rising costs and previous government policies. The potential backlash from affected communities and sports fans could pose a significant political challenge for the Labour government.