Brief
Chancellor Healey mulls slot‑machine tax rise as gambling firms warn of shop closures
Industry groups estimate a 40% duty could close up to 1,470 betting shops and cost nearly 16,000 jobs, while some critics call the warnings scaremongering.
By Felo News Desk · Published
The chancellor, John Healey, is reportedly weighing a proposal to increase the duty on high‑street slot machines from 20% to 40% in his upcoming budget, according to the Guardian.
What happened
The Social Market Foundation think‑tank, which supports a higher machines‑games duty (MGD), says the increase could raise between £275 million and £460 million a year on top of the £610 million collected last year. The Betting and Gaming Council commissioned EY to model the impact of a 40% duty, estimating that up to 1,470 betting shops – roughly a third of the 5,617 total – could close, resulting in about 15,900 job losses and a net loss of £120 million to the exchequer.
What the reports add
The Guardian notes that Betfred owner Fred Done claims he would have to shut about 495 of his own shops, cutting 2,475 jobs and losing £67 million in tax revenue. Entain, which runs Ladbrokes and Coral, warned it would need to cut staff across its 2,300‑shop estate. Rank Group, owner of Mecca Bingo and Grosvenor Casinos, said a third of its venues could be forced to close, affecting roughly 2,000 employees.
What was said
Fred Done told the Guardian that the proposed duty would "force us to close about 495 betting shops, nearly half of Betfred’s estate, with the loss of 2,475 jobs and £67 million in taxes." Stewart Kenny, co‑founder of Paddy Power, accused Done of "scaremongering" in response to the same proposal.
How it came about
The proposal follows a broader fiscal context in which the UK’s budget headroom has shrunk to about £12 billion, prompting the chancellor to explore new revenue streams ahead of the October 28 budget, as reported in earlier Felo News coverage.
Key facts
- The proposed duty increase could raise £275‑£460 million annually. (theguardian.com)
- EY modelling suggests up to 1,470 betting shops could close, costing about 15,900 jobs. (theguardian.com)
- Betfred owner Fred Done says he would have to close 495 shops, losing 2,475 jobs and £67 million in tax. (theguardian.com)
Sources
- [1] theguardian.com — originally reported as “Would a gambling tax rise in the budget really shut shops and cost jobs?”
