CARE's call for tax changes answered in budget

In this week’s budget, the Chancellor of the Exchequer, Rachel Reeves, has announced changes to taxation that CARE have been calling for. Increases in tax on gambling, and the removal of the two-child limit, have been issues that CARE have campaigned about.

Measures announced include a 19% increase in duty on remote (online) gambling, taking the rate from 21% to 40% with effect from 1st April next year. An increased duty on remote betting of 25% will come into force the following year, increased from 15%. These changes are expected to bring in at least £1 billion each year into the public finances.

There are, however, no changes for bets placed in person in high street bookmakers, or on horse racing. The government also announced a removal of the 10% duty on bingo.

CARE will continue to work for further increases in taxes on gambling. A 5% levy to pay for the effects of gambling harm alongside a 45-50% tax for social good would be CARE’s ideal.

CARE has been calling for a repeal of the two child cap on benefits since it was introduced by the Conservative government in 2017. The policy limited universal credit or tax credits to the first two children in a family. Nearly 1.7 million children live in a family affected by this policy.

“I don’t intend to preside over a status quo that punishes children for the circumstances of their birth,” said the Chancellor as she announced the budget, adding that the Labour Party did “not believe that the solution to a broken welfare system is to punish the most vulnerable children”.