Rachel Reeves' budget fail to raise gambling taxes coined as a "missed opportunity"

UK Chancellor Rachel Reeves is facing criticism for what many see as a missed chance to secure an additional £900 million for public funding by increasing taxes on online casinos.

The Labour government opted not to raise the remote gaming duty from 21% to 42%, a policy proposed by the Social Market Foundation think tank and supported by the Liberal Democrats.

This hike, estimated to generate substantial funds for health and social care, was ultimately excluded from Reeves’ budget, which included other tax increases totalling £40 billion.

Some of Labour’s supporters and significant donors, including gambling reform advocate Derek Webb, expressed disappointment. They argue the decision reflects Labour’s longstanding connections to the gambling industry, which has raised questions about the government’s commitment to reform in this sector.

Opponents also argue that passing up this potential revenue conflicts with Labour’s promise to tackle social and economic challenges through progressive taxation.

Labour has stated that the issue of gambling taxes will be revisited next year, with aims to simplify the tax system across gambling channels.