Critics accuse UK Chancellor Reeves of ‘gambling with lives’ over planned betting tax hike

Chancellor Rachel Reeves is facing fierce criticism from opponents over reports she plans to raise taxes on the gambling industry in next month’s Budget, with warnings the move could devastate Britain’s horse racing sector and cost thousands of jobs.

Reeves is considering increasing the levy on bookmakers from 15% to 21%, bringing it in line with the rate applied to online casinos. Critics say the proposal would deal a major blow to racing and those employed across the industry.

At the Conservative Party Conference in Manchester, Shadow Sport Minister Louie French called the plan “disastrous.” “Rachel Reeves claims she’s never gambled,” he said. “Well, she’s clearly gambling with lives and livelihoods now in the horse racing and gambling sector.”

French highlighted the industry’s contribution to the UK economy, noting that gambling generates over £4 billion (US$5.38 billion) in tax revenues, adds around £7 billion (US$9.41 billion) in gross value added (GVA), and supports more than 100,000 jobs nationwide, including in towns such as Wigan, home to the Tote.

The potential tax rise comes as Reeves searches for new revenue streams ahead of the 26 November Budget, constrained by fiscal rules that may compel her to increase levies on sectors deemed “non-essential,” such as alcohol, tobacco, and gambling.

Industry groups have warned the move could backfire. The Betting and Gaming Council (BGC) says higher taxes could push more punters toward unregulated websites, costing the Treasury millions and undermining consumer protection.

Recent data suggests that 1.5 million Britons already gamble on unregulated sites, depriving the Treasury of around £4 million (US$5.38 million) annually. Across the EU, black market gambling reportedly hit £70 billion (US$94.07 billion) in 2024.

“This is a huge gamble that the Labour Party has undertaken; they’re not listening to the sector,” said French. “All it will do is continue to fuel the black market. The treasury believes it can bank on this gambling tax, but it’ll cost thousands of jobs.”