Sarah Smith and Maya Ellis to target gambling companies

Sarah Smith, MP for Hyndburn and Haslingden, and Maya Ellis, MP for the Ribble Valley, were joined by six Lancashire MPs in a letter sent ahead of the Autumn Budget.

Joining her are Cat Smith, MP for Lancaster and Wyre, Lizzi Collinge, MP for Morecambe and Lunesdale, Lorraine Beavers, MP for Blackpool North and Fleetwood and Paul Foster, MP for South Ribble.

They argue that online gambling is taxed too lightly, given its rapid growth and the social costs it creates.

The group are recommending a new levy on remote gambling, with revenue ringfenced to support the abolition of the two-child benefit cap and wider measures to reduce child poverty.

Paul Foster MP said: “I’m calling for the abolition of the two-child benefit cap because it’s holding too many families back. We live in one of the wealthiest countries in the world, yet far too many children are growing up in poverty.

“That’s why I’ve joined over a hundred colleagues in writing to the Chancellor, proposing a targeted levy on online gambling to help fund action on child poverty.

“The gambling industry is hugely profitable—it’s only fair that it contributes more to the society from which it profits.”

In their letter, the MPs state that “the need for action is urgent” because of alarming child poverty figures.

They emphasise that more than 4.3 million children—almost one in three—are living in poverty in the UK, with the Joseph Rowntree Foundation warning that, without policy change, this is set to rise further by 2029.

Economic growth alone, they argue, will not reverse this trend and targeted and sustainable investment is required.

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Lizzi Collinge MP added: “No child should grow up in poverty while gambling companies make record profits. Gambling harms are increasing, yet gambling remains VAT-exempt.”

The MPs have highlighted that the UK’s 21 per cent tax rate on online gambling is significantly below that of other nations, such as 37.8 per cent in the Netherlands and 55 per cent in Pennsylvania and note that remote gambling now accounts for nearly half of all UK gambling profits.

They stress that British horseracing should remain protected through a differentiated tax approach, recognising its cultural and economic importance.

This immediate source of funding would help lift millions of children out of poverty and align fiscal responsibility with social justice, the MPs say.

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