Gordon Brown calls for gambling tax to cut child poverty
The Department for Media, Culture and Sport has been contacted for comment. The two-child limit and benefit cap affects 1.6 million children and is blamed for rising rates of food insecurity by anti-poverty campaigners, who say getting rid of the cap is the "single most effective" step the chancellor could take to reduce child poverty.The two-child limit restricts child tax credit and universal credit (UC) to the first two children in most households, while the benefit cap sees the amount of benefits a household receives reduced to ensure claimants do not get more than the limit.The government is expected to publish a child poverty strategy in autumn, and children's charities and campaign groups have been united in calling for the two-child limit to be scrapped.Writing in the Guardian, Brown states: "Britain is now enduring the worst levels of child poverty since modern records began, even worse than in the Thatcher-Major years, and far worse than in most European countries..."These are austerity's children, the victims of 14 years of Tory rule, an era whose most vindictive act was to treat newborn third and fourth children as second-class citizens, depriving them of all the income support available to their first and second siblings."Flagging that child poverty is set to rise to "a wholly unacceptable" 4.8 million, Brown urges Chancellor Rachel Reeves to make "a straightforward budget choice" to raise taxes on online gambling companies to fund tackling child poverty.The proposals focus on online gambling firms - the fast-growing part of the industry - and avoid any changes to bingo or lotteries. The IPPR suggested increasing taxes on online casinos from 21% to 50% and raising those on slots and gaming machines from 20% to 50%.Many online gambling firms are based offshore and pay little or no UK corporation tax, the IPPR report flags, and already benefits from unique tax advantages, including a complete exemption from VAT. The IPPR said raising gambling taxes in the way they suggested would be unlikely to reduce overall government revenue.Henry Parkes, principal economist and head of quantitative research at IPPR, said: "The gambling industry is highly profitable, yet is exempt from paying VAT and often pays no corporation tax, with many online firms based offshore. "It is also inescapable that gambling causes serious harm, especially in its most high-stakes forms."Set against a context of stark and rising levels of child poverty, it only feels fair to ask this industry to contribute a little more."But a spokesperson for the Betting and Gaming Council said they rejected the "economically reckless, factually misleading" proposals which they insisted "risk driving huge numbers to the growing, unsafe, unregulated gambling black market, which doesn't protect consumers and contributes zero tax".They added: "Further tax rises, fresh off the back of government reforms which cost the sector over a billion in lost revenue, would do more harm than good - for punters, jobs, growth and public finances."
Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Record
9 minutes ago
- Daily Record
Teachers need protecting from violence with attacks on rise by children
The Scottish Government's annual crime survey showed 31 per cent of violent crimes are carried by under-16s. No one deserves to be assaulted at their place of work. But for teachers, it's becoming a daily concern in some schools. At a time when violence in society is in long-term decline, one-in-three violent offences in Scotland is now committed by children – with attacks on teachers blamed for the massive rise. A quarter of all violent offences are carried out by children against adults in their place of work – with teacher assaults understood to be the majority of these incidents. It can't be repeated too many times that the majority of pupils are hard-working, polite and want to enjoy their time at school. But there remains a minority who seem to revel in the fact that discipline in some classrooms – such as the threat of exclusion – has been removed almost entirely. Many parents will be left scratching their heads over a policy which allows regular troublemakers to avoid consequences. For many years, well-meaning government ministers and local council education chiefs were tied to the mantra of 'inclusiveness'. This misguided policy made it almost impossible to exclude the worst-behaved children. On paper this might have sounded like a good idea. But in the real world it gave a free pass for bad behaviour. It is teachers and well-behaved pupils who are left to deal with the inevitable breakdown in school discipline. If some pupils are repeatedly violent, they must be removed from the classroom for the benefit of others. Classrooms can't be run for the benefit of the worst behaved. Teachers and parents understand. So why doesn't the government? Poverty gamble Gordon Brown's record as chancellor in cutting poverty was second to none. Children and pensioner incomes were boosted and lives were transformed under the last Labour government. But much of that good work was undone by heartless Tory administrations from 2010 onwards. More than 4.5million children are living in poverty in the UK and the numbers are projected to go up. Keir Starmer wants to cut child poverty but he is hamstrung by a lack of money. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. Brown's suggestion today that the Government take kids out of poverty by tackling the obscene profits of the gambling industry is positive. Many people like a flutter but gambling firm profits are also based on misery. Oil and gas firms pay a super tax in recognition of the damage done by their industry. Taxing gambling firms more to scrap the two child tax is a cause everyone should back.
Daily Mail
10 minutes ago
- Daily Mail
Victoria Starmer received £650 tickets for Royal Ascot - despite the Prime Minister paying back more than £6,000 worth of gifts just last year, reveals Richard Eden
She's been described as a 'reluctant' political spouse because of her rare public appearances, but Victoria Starmer is, it seems, anything but reluctant when it comes to accepting freebies. Her husband, Sir Keir Starmer, has disclosed that her attendance at a horse racing event last month was thanks to a gift from Ascot Racecourse. This week, the Prime Minister updated his entry in the parliamentary Register of Members' Financial Interests to record that he accepted £650 worth of tickets from the Berkshire racecourse. The entry states: 'Name of donor: Ascot Authority (Holdings) Limited. Amount of donation or nature and value if donation in kind: Tickets and hospitality for three family members (value approximate), value £650.' Sir Keir did not join his wife at the King George Racing Weekend event. It is thought that he was preparing for his talks with Donald Trump, whom he was due to meet after the US President's trip to Scotland. Lady Starmer, 52, an NHS occupational health worker, was pictured enjoying the warm weather in a bright orange sundress as she attended The King George and Queen Elizabeth Stakes at the racecourse. Sir Keir's acceptance of the freebie is surprising as last October he paid back more than £6,000 worth of gifts and hospitality he had received since becoming Prime Minister, following a backlash over donations. That included nearly £2,000 for four tickets to Doncaster Racecourse, as well as six Taylor Swift tickets and a clothing rental agreement with a high-end designer favoured by Lady Starmer. It came after Sir Keir and other cabinet ministers faced weeks of criticism for accepting freebies from wealthy donors. The Prime Minister said it was 'right' for him to repay the cost of some gifts. Asked about the donations, he said his Government would bring forward new principles for donations 'as until now politicians have used their best individual judgement to decide'. He said: 'I took the decision that until those principles were in place it was right to repay these particular payments.' Sir Keir has committed to tightening the rules around ministerial hospitality and gifts to improve transparency. Earlier, a Downing Street spokesman confirmed that the ministerial code would be updated and will include 'a new set of principles on gifts and hospitality' commissioned by Sir Keir. MPs are allowed to accept gifts from donors but have to declare these on the register of MPs' interests. It's the spiritual home of cricket and now Lord's is for sale – well, at least small pieces of it. Marylebone Cricket Club (MCC) is offering its members the chance to buy chunks of turf from the north London pitch for £50 each. 'At the end of the 2025 season, we will be resurfacing the famous outfield on the Main Ground at Lord's for the first time in 23 years,' explains an MCC email. 'To raise funds for the MCC Foundation, and to aid future development of the cricket field, we are offering all members the chance to own a piece of Lord's turf.' One louche member tells me: 'I normally buy my grass in Camden Town.' Anneka (and jumpsuit) is back in black Anneka Rice once revealed she had a 'shrine' to the jumpsuits she used to wear on 1980s hit TV show Treasure Hunt and even hired them out for hen parties. Clearly, the presenter has saved a few of them for her own nights out. Rice, 64, slipped into a black jumpsuit for the opening night performance of Secret Cinema's Grease: The Immersive Movie Musical at Evolution in London this week. The Welsh-born presenter returned to our screens last year for the revival of 1990s reality series Challenge Anneka, but it was cancelled after just three episodes due to low ratings. Dame Mary Archer is not just 'fragrant' – as a judge called her in her husband Jeffrey's 1987 libel trial – but extremely fit as well. I hear the 80-year-old is to join five other dames in running a charity relay race next month. 'The Great Dames are dusting off their trainers… and generally limbering up to run in Cambridge's famous Chariots Of Fire race,' she says, referring to their team name. Each woman will run a 1.7-mile loop before passing over the baton. 'The beneficiary is Roald Dahl's Marvellous Children's Charity,' she says. 'The funds raised will go directly towards establishing a new Roald Dahl Nurse.' Francesca saddles up in style ITV's perkiest presenter, horse racing pundit Francesca Cumani, is determined to prove she'd be a stylish dresser whichever century she happened to be born in. The mother of two attended the Goodwood Regency Ball – where guests were transported back to the 19th century – wearing a floor-length red dress from vintage fashion for hire store Constantine Rex. 'In full costume at the Goodwood Ball with this handsome pair,' Cumani, 42, wrote of fashion stylist Sarah Byrne, pictured left, and racehorse trainer Stephanie Easterby, pictured right, next to this photograph taken at Goodwood House, the Duke of Richmond's ancestral seat in West Sussex. Middleton's answer to ruff days at work Some might say he's barking, but James Middleton has called for companies to let employees bring their dogs to work. The Princess of Wales's brother claims it would boost productivity. 'Dogs in the workplace should be a generic 'yes' unless there is a very good reason to say 'no',' says James, 38, who runs dog food firm James & Ella, named after him and his late first dog. 'I started the business during the pandemic and the whole team works remotely. 'When we all get together, there are dogs everywhere and I really believe they increase productivity. Ideas come from those 15-minute breaks, taking them out to the garden.'
Times
37 minutes ago
- Times
How will my pension be impacted by inheritance tax?
Q. I understand pensions will be brought into the realm of inheritance tax (IHT) in the next couple of years but I wondered if there was any information concerning how the value of the pension will be assessed? Other assets have a financial value which is easily understood. They may also be given away and, provided that the rules are adhered to, may avoid IHT. I do not believe the same can be said for pensions. My understanding is that they cannot be given away during your lifetime, which is why the government is looking to include them within the IHT assessment. The real value of a pension may depend on the tax treatment it will be subjected to. When a pension is assessed for IHT purposes, is it the full value of the remaining pension that becomes part of the estate for IHT? Please note I live in Scotland — will this affect the income tax charged to my beneficiaries?Neil As you note, from April 2027 the government has confirmed unspent pensions will count towards your estate for IHT purposes, meaning more people will be affected by the tax. That said, despite IHT being one of the most unpopular taxes in the UK, it is levied on a minority of households — so it might not affect you at all. About 5 per cent of deaths result in any IHT being paid, though the inclusion of pensions may double this proportion. You will need to exhaust your nil-rate band of £325,000 and main-residence nil-rate band of £175,000 (an extra allowance for those leaving their home to a direct descendant on estates worth up to £2 million) before any of your estate is exposed to an IHT charge of 40 per cent. Furthermore, if your estate, including any pensions after April 2027, is being inherited by your spouse or civil partner, there will be no IHT to pay at all. And in general terms, it is best not to let the tax tail wag the pensions or investment dog. To confirm, it will be the full value of your pension, before income tax, that is assessed for inheritance tax. Tax, including IHT, is clearly a consideration when making retirement decisions, but it should not be the only consideration. If you die before age 75 your pension, up to a limit of £1,073,100, can usually be passed without your beneficiaries having to pay income tax when they withdraw it. Above the limit they will pay tax at their normal rate. If you die after age 75, your beneficiaries will pay income tax on all of the funds at their normal rate. These rules will still apply when defined contribution (DC) pensions become subject to IHT from April 2027. For those unfamiliar with the jargon, a DC pension is a retirement pot where how much you build up is based on what you pay in and investment growth. Your contributions benefit from upfront tax relief, the growth is tax-free and your money available to access as you wish — with up to a quarter available to take tax-free — usually from age 55 (rising to age 57 from April 2028). The alternative is a defined benefit (DB) pension, where you are paid an income for life, though these are increasingly rare as they are so expensive to fund. Where it can be passed on (usually to a dependant) this income will remain free of IHT when the rules change. Annuities, an insurance product that pays an income for life, which can sometimes be passed to a named beneficiary, will also remain IHT-free. However, certain lump sum death benefits from defined benefit (DB) schemes will be subject to IHT from April 2027. Broadly, any money left in a DC pension pot on death — whether it's untouched or has been put into 'drawdown' — will count towards your estate for IHT purposes. IHT will only become a factor if passing it on to someone other than a spouse or civil partner and the total value of your estate exceeds your IHT nil-rate bands. In terms of valuing DC pensions, that shouldn't be a problem as they are all cash amounts. On gifting, there is nothing stopping you accessing your DC pension and handing the money to loved ones. Provided that you live for seven years after making the gift, this money should be IHT-free. On income tax, these proposals are UK-wide but it will be the income tax rate that applies to your beneficiaries in the country they live that will apply. Income tax rates in Scotland are different from those in England and Wales, with a lower starter rate of 19 per cent on income between £12,571 to £15,397 a year, but a number of extra income bands and a top rate of 48 per cent on income above £125,140, instead of 45 per cent. Any beneficiaries living there could pay a higher tax bill if they withdrew a large sum in one year than if they lived elsewhere. Tom Selby is the director of public policy at AJ Bell and has successfully campaigned for retirement reforms such as banning pensions cold-calling and increasing pension allowances
