Talks of Higher Taxes in UK’s Budget Cause Havoc

Facing a £22 billion “black hole” in the Nation’s finances, the Chancellor of the Exchequer, is under pressure from several sides demanding to tap the gambling industry for an amount ranging from 900 million and £3 billion in extra taxes. Due to be announced on the 30th of October, it appears that the Finance Bill (the Budget) will provide for the increase in the amount of duty paid by an industry that at present takes in £11bn a year from British punters.

The first consequence to hit a sector already facing tougher regulation and taxes, was the sale by investors of shares in gambling companies, collectively cutting their value by more than £2billion.

In response to the criticism from the Social Market Foundation thinktank that for too long, gambling operators have profited from lower tax rates in the UK than other countries, the Betting and Gaming Council, replied that the current speculation around taxes is being driven by anti-gambling campaigners, based on unrealistic economics. Furthermore, it is believed that any further tax rises will not only halt growth for the gabling sector but will threaten jobs and completely derail horse racing. Lastly, the gambling industry is pursuing the implementation of the measures contained in the “White paper”, which will cost the sector more than £1billion along with the new levy on research, prevention and treatment for problem gambling, which will raise £100m a year from bookmakers.

Want to know how to stay on top in a highly competitive industry and how to mitigate economic impacts of compliance obligations? Get in touch with experts from Chevron Group Nikolas Lotz (nikolas@chevron.group), Lawrence Marchese (lawrence@chevron.group) and Thees Buschmann (thees@chevron.group). Follow us on LinkedIn for more industry related news.