Kemi Badenoch Accuses Labour of Tax Doom Loop That Will Close UK Gambling Businesses

Kemi Badenoch has blasted the Labour government for placing UK gambling in a tax doom loop ineffective for the economy and cannibalising the high street. The Conservative Party leader issued the criticism ahead of the first Autumn Budget from Chancellor John Healey amid expectations of a Machine Games Duty increase.

Badenoch warned that further tax rises will push punters to the black market. She stated the good companies will go out of business should there be a continuation of tax rises on the sector.

“Labour are in the tax doom loop. They raise taxes, businesses close, less money comes in, and so they have to raise taxes even further,” Badenoch told The Sun. “What they’re doing is just cannibalising business.”

Things appear to be repeating themselves from 2025, when Badenoch’s Conservative party positioned itself as an ally of horse racing in particular during discussions about betting tax in the run up to then-Chancellor of the Exchequer, Rachel Reeves’, November Budget.

Badenoch Backs Licensed Sector Campaigns

Last October Badenoch joined the Save our Bets campaign. She branded Keir Starmer and Rachel Reeves as the fun police turning Britain into a nanny state. Badenoch has backed Shadow Gambling Minister Louie French’s claim that the former Conservative government took a balanced and business-friendly approach to the Gambling Act Review. The tax burden imposed by Labour impacts independent businesses to the detriment of UK racing and rural communities.

High Street Losses Loom if MGD Rises

Fred Done warned that retail betting will become extinct by 2030. Stella David wrote directly to Prime Minister Andy Burnham after Entain job cuts urging sympathy for the licensed industry. Grainne Hurst warned that up to 16,000 jobs, 1,500 betting shops and 34 casinos could be lost should an MGD increase be announced. As reported by SBC News several major operators have noted potential market share gains from smaller bookmakers under tax pressure though none support the hikes.

Public policy should not be driven by assumptions or ideology. It should be driven by evidence and an honest assessment of consequences. Good intentions do not automatically make good policy. If ministers follow the SMF’s advice, they will not simply increase Machine Games Duty. They will make a conscious decision to place legitimate businesses under even greater pressure, jeopardise thousands of jobs, weaken horseracing and accelerate the decline of community venues that have served Britain for generations. Policymakers now face clear signals on the costs of further tax rises to the regulated market.

Reporting: SBC News

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