Betting and Gaming Council CEO Grainne Hurst “deeply concerned” by Alex Ballinger MP and fellow Labour MPs’ proposal to double MGD rate to 40%

Labour MPs have called on UK Chancellor of the Exchequer John Healey to double Machine Games Duty (MGD) for high-stakes machines in this month’s Autumn Budget.

A letter written by Alex Ballinger MP has been signed by 90 Labour MPs, urging the Chancellor to introduce a higher rate of MGD for Category B machines.

“This would be a popular, targeted and proportionate way to raise revenue, in line with our manifesto commitments and focused where the case for action is strongest, while protecting the wider land-based leisure and hospitality sectors,” wrote Ballinger. “Lower-category machines would remain unaffected, pubs wholly outside its scope, and the abolition of Bingo Duty full protected.

“Our proposal builds on the precedented established at last year’s Budget – one firmly rooted in Labour value: that those who profit most from products associated with the greatest harm should be taxed at a higher rate and bear a greater share of the social and economic costs associated with them.”

Last year’s November Budget saw the British Government almost double Remote Gaming Duty (RGD) to 40 per cent of revenue, effective from April of this year. From next April, General Betting Duty (GBD) for online betting will also increase from 15 per cent to 25 per cent.

The Labour MPs are calling on the Chancellor to apply the same principles to MGD, particularly Category B machines that permit rapid play at stakes of up to £2 and £500 prizes.

Ballinger cites findings from the Social Market Foundation (SMF), which estimates that a 40 per cent Category B rate of MGD could raise between £275 and £458 million annually.

“This targeted Labour reform would protect communities from harm, require fair contributions from the broadest shoulders, and back high streets creating opportunity and retaining wealth,” wrote Ballinger. “Pubs would pay no more, bingo games would stay duty-free and lower-category machines would remain protected.

“It would realise the Prime Minister’s determination to return power to communities and build an economy serving them, in line with our manifesto commitment to reduce gambling harm. Fair, popular and fiscally responsible, this opportunity should be seized at the Budget.”

In response to the proposal, Betting and Gaming Council (BGC) CEO Grainne Hurst said she was “deeply concerned” by the letter calling for MGD to be doubled.

“We all want to protect our high streets, support local communities and tackle gambling harm,” she wrote on LinkedIn. “But increasing taxes on betting shops and casinos, putting thousands of jobs and businesses at risk, is not the answer. The independent evidence tells a very different story to the one presented in this letter.

“EY modelling shows a rise to 40 per cent could cost up to 16,000 jobs, close nearly 1,500 betting shops and 34 casinos, and leave the Treasury up to £124 million worse off. This is not a hypothetical threat. More than 600 betting shops have already closed or announced closure since the last Budget, with over 10,000 jobs lost or put at risk.

“Behind those figures are real people, many of them young workers, parents and carers, like those who have shared their stories in our Back Our Betting Shops campaign videos. They are proud of their jobs, the communities they serve and the difference they make to people’s lives. More than eight in ten betting shop jobs are outside London.”

Hurst concluded: “I would urge MPs supporting this letter to consider the consequences for the very communities they want to protect. Every closure means fewer jobs, another empty shopfront and another blow to Britain’s high streets. We should be backing British jobs and businesses, not taxing them out of existence.”

The UK Autumn Budget takes places on Wednesday 28 October.