Key Moments:
- Michelle Scrogham and fellow Labour MPs have urged the Chancellor to introduce a targeted levy on online gambling products.
- The proposed levy would ringfence revenue to address child poverty and offset related harms.
- MPs have raised concerns about merging all remote gambling taxation into a single Remote Betting and Gaming Duty.
Push for Targeted Online Gambling Levy
The Barrow and Furness MP, Michelle Scrogham, is spearheading a campaign for a new levy on online gambling products, aiming to generate funds dedicated to combating child poverty. Working alongside Labour Party colleagues from other regions, Scrogham is encouraging the Chancellor to incorporate this policy into the upcoming Autumn Budget.
Details outlined in a letter to the Chancellor describe the proposal as a means to address what MPs consider light taxation within the online gambling sector. The letter states: “We propose this policy as a means to redress the relatively light taxation of online gambling, supporting our shared goals of delivering sustainable public finances alongside improved public health outcomes.
“Such a policy would support the government’s manifesto pledge to reduce gambling-related harm and enable vital action to alleviate child poverty.”
No child should grow up in poverty while gambling companies make record profits. Gambling harms are increasing, yet gambling is VAT exempt.
That is why I signed this letter to the Chancellor calling for a targeted levy on online gambling, to fund investment in child poverty. pic.twitter.com/JqicYejrkK
— Sadik Al-Hassan MP 🌹 (@SadikAlHassanMP) September 30, 2025
Resistance to Unified Taxation Structure
MPs have voiced reservations about HM Treasury’s recent suggestion to consolidate tax treatment for remote gambling activities into a single Remote Betting and Gaming Duty (RBGD). In their communication, they highlight opposition from the Gambling Reform All-Party Parliamentary Group and other stakeholders who are wary of such harmonization. The letter continues: “Treating all remote gambling activities under one duty fails to reflect well-established differences in risk and harm.”
The appeal includes a call for an increased levy on remote gambling, noting that the United Kingdom’s effective tax rate remains much lower compared to other nations.
Allocating Revenue and Addressing Child Poverty
The MPs underscore that funds derived from the proposed levy would be dedicated to alleviating child poverty, including supporting efforts such as abolishing the two-child benefit cap. They also emphasize the need to support British horse-riding, describing it as a sport of cultural and historical importance, with the levy helping to address financial gaps.
According to the letter: “Revenue from such taxation should be ringfenced to support the abolition of the two-child benefit cap and the wider goal of reducing child poverty.
“The need for action is urgent. You will be only too aware that 4.3 million children in the UK – nearly one in three – are living in poverty,” the letter said.
The Joseph Rowntree Foundation’s UK Poverty 2025 report projects England’s figure to rise to 31.5% by 2029.
The MPs further argue: “An online gambling levy – calibrated to reflect both profit and harm – offers exactly that: a credible, fair, and immediate source of revenue.
“It would signal a government serious about aligning fiscal responsibility with social justice, and committed to tackling poverty not just with words, but with action,” the letter said.
Looking Ahead to the Autumn Budget
The Autumn Budget 2025 is scheduled for 26 November. Michelle Scrogham expressed her support for the initiative, stating: “I believe this could help reduce gambling-related harm and raise funds that can help ensure fewer children grow up in poverty.”
| Topic | Details |
|---|---|
| Proposed Policy | Levy on online gambling products |
| Primary Purpose | Funding to address child poverty and related social harms |
| Timeline | Consideration for Autumn Budget 2025 (26 November) |
| Opposition Raised | Concerns over merging remote gambling taxes into single RBGD |
| Projected Child Poverty Rate in England by 2029 | 31.5% |
- Author
Daniel Williams
