UK Chancellor Reeves Signals Gambling Tax Hike to Fund Child Poverty Benefit Cap Removal

UK Chancellor Rachel Reeves has indicated plans to raise taxes on the gambling industry, aiming to make firms pay their "fair share" and potentially fund the removal of the two-child benefit cap, a move supported by former Prime Minister Gordon Brown and over 100 Labour MPs. The cap, introduced in 2017, limits child benefits for families to two children, and lifting it is expected to cost around £3 billion annually. While the Treasury is consulting on harmonizing online gambling duties, concerns have been raised about the impact on British racing and the betting industry, with warnings of significant income losses and risks of fueling the black market. Gambling minister Baroness Fiona Twycross emphasized the need to balance tax increases against potential job losses, especially in regions where gambling companies are major employers. Analysts have also expressed skepticism, suggesting that proposed tax hikes might reduce government income due to the industry's thin profit margins, possibly leading to closures and job losses. The debate reflects tensions between funding social benefits and protecting the gambling sector from economic harm and illicit market growth.