Lancashire MPs call on government to introduce new online gambling tax to fight child poverty
Six Lancashire MPs are among more than 100 across the country calling on the Chancellor to introduce a new tax on online gambling companies to help tackle child poverty.
In a letter sent ahead of the Autumn Budget, the cross-party group says online gambling is taxed too lightly given its rapid growth and the social harm it causes.
They are urging the government to bring in a “targeted levy” on harmful online gambling products - such as online slots and casinos - with the revenue ringfenced to scrap the two-child benefit cap and fund wider anti-poverty measures.
The MPs say the need for action is urgent, with over 4.3 million children - almost one in three – living in poverty in the UK.
Labour MP Paul Foster (South Ribble) said: “I’m calling for the abolition of the two-child benefit cap because it’s holding too many families back.
“We live in one of the wealthiest countries in the world, yet far too many children are growing up in poverty.
“That’s why I’ve joined over a hundred colleagues in writing to the Chancellor, proposing a targeted levy on online gambling to help fund action on child poverty.
“The gambling industry is hugely profitable—it’s only fair that it contributes more to the society from which it profits.”
Without policy change, the Joseph Rowntree Foundation warns this figure will rise even further by 2029.
They also point out that Britain’s 21% tax rate on online gambling profits is far lower than in many other countries - including 37.8% in the Netherlands and 55% in parts of the US - despite remote gambling now accounting for nearly half of all UK gambling profits.
They stress that British horseracing should remain protected under a separate, lower tax rate because of its cultural and economic importance.
Lizzi Collinge, MP for Morecambe and Lunesdale, added: “No child should grow up in poverty while gambling companies make record profits.
“Gambling harms are increasing, yet gambling remains VAT-exempt.”
The Lancashire MPs who signed the letter are Cat Smith (Lancaster and Wyre), Lizzi Collinge (Morecambe and Lunesdale), Lorraine Beavers (Blackpool North and Fleetwood), Maya Ellis (Ribble Valley), Paul Foster (South Ribble) and Sarah Smith (Hyndburn).