Gordon Brown demands gambling tax hike to cut child poverty

In the UK, recent discussions led by former Prime Minister Gordon Brown have focused on the need to reform gambling taxes as a means to alleviate child poverty. The Institute for Public Policy Research (IPPR) conducted research indicating that adjusting tax rates on the gambling sector could generate the estimated £3.2 billion necessary to eliminate current policies like the two-child limit and the benefit cap, which affect low-income families disproportionately. Brown, along with the IPPR, argues that this financial support could lift an estimated 500,000 children out of poverty and reverse a trend of escalating hardship faced by families in the UK. The IPPR's findings suggest that the tax burden on online casinos should be raised from 21% to 50%, and taxes on slot machines from 20% to 50%. They also recommend increasing the general betting duty on non-racing bets from 15% to 25%, aiming for fairness in taxation across different sectors of gambling. Such measures are seen as critical steps toward addressing the rising levels of child poverty, which Brown personally recalled from his own experiences growing up in economically depressed regions. As the UK government prepares to publish a child poverty strategy later this autumn, pressure continues to build from various campaign groups urging for the abandonment of the two-child limit established in past welfare reforms. Critics of the existing policies fear that the delay in government action may lead to immediate consequences, with more children falling into poverty before any strategic measures can be implemented. In light of the current economic situation, where families are struggling under severe financial strain, calls for reform are becoming increasingly urgent. Gordon Brown's involvement and his calls for tax reform stem from a broader context where the gambling sector, known for its high profitability, is largely exempt from paying significant taxes, and many operations are based offshore, escaping rigorous scrutiny. Brown emphasized that the gambling industry should contribute more to help tackle the unmet needs of society and ensure that children across the country get the best start in life. Any reform initiated could set a precedent for future welfare policies and is seen as a crucial step toward creating a more equitable society. The conversation around gambling tax reform is part of a larger narrative concerning the fiscal stewardship of the government, the maintenance of public welfare, and the ethical responsibilities of highly profitable industries in contributing to societal welfare.