90 Labour MPs Urge Chancellor to Raise Machine Games Duty in Autumn Budget
A letter signed by 90 Labour MPs has been submitted to Chancellor of the Exchequer John Healey, calling for an increase in Machine Games Duty (MGD) on high-stakes gaming machines in the upcoming Autumn Budget. The intervention places further pressure on the Treasury at a time when gambling taxation is already under review, and it has drawn a firm response from industry bodies concerned about the potential impact on high-street operators.
The cross-party-internal campaign, coordinated within the Labour parliamentary party, calls specifically for MGD to be raised on Category B machines – the higher-stakes products commonly found in adult gaming centres (AGCs) and betting shops. The letter reportedly urges the Chancellor to double the duty rate on these machines to 40 per cent, a figure previously advanced by the Social Market Foundation (SMF) in a report published earlier this year.
Campaigners framing the proposal emphasise that it targets a narrow segment of the market. According to the letter, pubs cannot offer Category B machines and would therefore face no higher rate, while bingo products would remain duty-free. Supporters of the measure argue that higher-stakes machines carry a greater risk of gambling-related harm and that the tax system should reflect that distinction.
Alex Ballinger MP, who publicised the letter, stated that it was “time to raise taxes on harmful gambling machines,” reflecting the tone of the correspondence sent to the Chancellor.
The proposal follows earlier calls from within the Labour Party for broader gambling tax reform. Former Prime Minister Gordon Brown previously suggested that an increase in Machine Gaming Duty could raise in the region of £500 million. Separately, the government has already legislated for Remote Gaming Duty to rise from 21 per cent to 40 per cent from 1 April 2026, alongside the introduction of a new remote betting rate of 25 per cent.
Industry Response
The Betting and Gaming Council (BGC) has responded critically to the letter. BGC Chief Executive Grainne Hurst cautioned against doubling the duty to 40 per cent, arguing that higher taxes would carry consequences for employment and the sustainability of licensed high-street venues.
The sector’s concerns are echoed by trade associations representing the machine retail and amusements sector, including Bacta, which has been lobbying ministers and MPs against a significant duty increase. Industry campaigns have warned that operators in coastal and lower-income communities, where AGCs are often concentrated, could be disproportionately affected.
Operators of clubs and pubs have also mobilised against earlier versions of gambling tax proposals, urging members to lobby their local representatives. While the current letter seeks to reassure pub and bingo operators that their products would be unaffected, industry figures remain wary that any structural change to machine taxation could pave the way for wider measures in future budgets.
A Decision Ahead of the Budget
The Chancellor is reported to have been weighing an increase in the tax on gaming machines ahead of the Budget, as the Treasury seeks additional revenue. The letter from 90 MPs adds visible parliamentary support to the case for action, while the industry’s warnings about jobs and investment provide a counterweight, however the industry also knows that another tax on them would not be unpopular with the British public or media. The fear is from companies that support hundreds of thousands of jobs here is that no matter how hard the industry explain the dangers of more tax rises the government will do exactly what it wants.
