End two-child benefit cap by hiking gambling taxes, Gordon Brown tells Labour
Wider reforms of how gambling is taxed could generate £3.2bn to scrap the two-child benefit limit, a new report has found.
The Institute for Public Policy Research is calling on the Government to increase the levy on online casinos slots and gaming machines to 50 per cent, and bring other sports in line with rates paid on horse racing.
It says this will focus on the most profitable parts of the gambling industry - such as online casinos - where harms are concentrated and revenues have soared.
Former prime minister Gordon Brown has backed the plan, calling for urgent political action to address rising child poverty.
He said: “Thanks to IPPR’s report, we now know that taxing gambling more fairly would fully fund the first crucial step in the war we must wage against child poverty: ending the two-child limit and lifting the benefit cap.
“There are many reasons why the highly profitable betting and gaming industry should pay a fairer share towards the cost of the UK's unmet needs.
“Most important is that it would enable half a million children to be lifted out of poverty in this autumn’s budget, and so help to build our country for the next generation.”
The Treasury wants to move all online betting duties into one single rate, so casino games, slots and sports would all be taxed at the same level.
The industry believes this is unfair as horse racing contributes huge amounts to towns and cities across the UK, compared with computer-based games.
Research from Development Economics, commissioned by the British Horseracing Authority, has estimated that Yorkshire would suffer a £37m economic hit, with 342 jobs - from trainers to stable staff - at risk.