Gordon Brown Wants Gambling Tax Boost to Fight Rising Child Poverty

Gordon Brown, who used to be the UK Prime Minister, has called on the government to make online gambling companies pay a lot more in taxes. He thinks this will help deal with the big increase in child poverty all over the UK. His suggestion comes at a time when Labor is feeling more pressure from politicians to get rid of the two-child benefit limit right away, which many people do not like.

Ex-PM Calls for 50% Gambling Tax to Aid 1.6 Million Children

Gordon Brown’s plan, supported by a new Institute for Public Policy Research (IPPR) study, suggests hiking taxes on internet casinos and slot machines. He wants to raise them from 21% and 20% to 50%. The IPPR believes this could bring in about £3.2 billion ($4.3 billion) each year. This money would be enough to get rid of the two-child limit and the benefit cap. These rules currently have an impact on more than 1.6 million kids.

The ex-Labour chief claimed that the betting business, which he called very profitable and not taxed enough, should pay more to help meet the country’s pressing social needs. He pointed out that many internet companies pay little to no UK company tax and do not have to pay VAT, yet they make billions in profits while making gambling problems worse.

Brown, who first brought in a gambling tax when he was in charge of the country’s finances in 2001, said using money from this industry sector to change child benefits, would be both fair and needed. He stressed that getting rid of benefit limits could help half a million children escape poverty, giving hope back to a group of people now facing tough financial troubles.

Think Tank Calls for Higher Betting Taxes to Confront UK’s Growing Social Crisis

The IPPR’s ideas stretch beyond online gaming. They also want to hike the general betting tax from 15% to 25% and bump up taxes on physical slot machines to match the suggested 50% rate for their online counterparts. The think tank claims these steps are not just doable money-wise but right, given the growing child poverty, which might affect 5 million kids by 2029 if nothing changes.

However, industry spokespeople disagree with these plans. A representative from the Betting and Gaming Council cautioned that such tax increases could put jobs at risk, lower government income over time, and push users towards illegal gambling markets.

Even with pushback, Brown thinks now is the time for daring policy moves. He pointed out some scary numbers, loads of kids without basic needs, more people on the streets, and over 2,800 food banks now running in the UK, as proof that doing nothing just would not cut it anymore.

As the government gets ready to roll out its plan to tackle child poverty this fall, activists and number-crunchers will keep a close eye on whether politicians listen toBrown’s idea of tapping into the gambling industry to deal with one of the country’s most pressing social problems.