UK government funds high street business rate cuts with gambling tax hike

The UK government will fund support for high street shops by raising taxes on gambling machines. Chancellor John Healey announced the measure in the budget on 28 October, revealing a five percentage point increase in the Machine Games Duty. The revenue will pay for a raised threshold for business rates, exempting more small businesses and freezing rates for others. Adult Gaming Centres and vape shops will be excluded from this business rate support.

"To pay for this support for our high streets, I am raising taxes on gambling," Healey declared in his budget speech. He later reiterated, "[I'm] raising taxes on gambling to support good growth on every high street." The move follows a near-doubling of the remote gaming tax last year by then-chancellor Rachel Reeves, who also linked it to gambling harms. Anti-gambling campaigners celebrated the latest decision.

MP and campaigner Alex Ballinger said on social media that "supporting our high streets should mean backing local businesses that help them thrive, not serving the interests of the gambling industry." Labour MP Dawn Butler praised funding the cuts with gambling taxes, stating, "Basically we're taxing harm to help good business," while calling for Healey to go further. The government's framing of the gambling sector contrasted sharply with its treatment of banks, which received praise from Healey for their economic contribution when he announced a separate, time-limited levy hike. Prime Minister Andy Burnham's government has identified high street revitalization as a key political issue, framing some businesses as detrimental. In August, Burnham drew industry condemnation for calling betting shops "dodgy businesses" alongside vape shops as he announced greater council powers to reject gambling premises. The government's latest policy signals it views the gambling sector as a source of revenue for funding other businesses, rather than as a legitimate part of the high street economy. Analysts have said the five-point Machine Games Duty increase may be tolerable and mitigatable by firms. However, the government's rhetorical framing creates uncertainty for operators about future tax hikes, with some Labour MPs already advocating for a 40 percent rate. Operators have said a lack of long-term clarity on regulation and taxation is hurting investment and planning.

"Our world-leading banks make a huge contribution to this country in the tax they pay, in the jobs, industry and investment they support," Healey said of the banking sector. "As Chancellor, I want to say directly to our banks, I celebrate and am grateful for the role you play."

Underkansler John Healey erbjöd inga liknande lovord till spelbranschen i sin budgetanmälan den 28 oktober. Han förklarade att han höjde skatterna på spel för att finansiera stödet till högattans företag. Healey sa, "To pay for this support for our high streets, I am raising taxes on gambling." Regeringen har därmed signalerat en ovilja att erkänna spelbranschens legitima värde för högattan. Dess inställning riskerar en självförstörande cykel där högre skatter tar bort både finansiering och incitament för spelpremisser att renovera.