A DISTRICT MP has urged the Chancellor to increase taxes on betting companies in a bid to address child poverty – but her predecessor has accused her of “muddled thinking and ignorance”.
Anna Dixon – MP for Shipley constituency, which includes Cullingworth and Denholme – and over 100 fellow Labour MPs have sent a letter to Rachel Reeves arguing for a “targeted levy on harmful online gambling products” – and for the funds generated to be allocated to ending the two-child benefit cap.
The two-child limit, brought in by the Conservatives, restricts child tax credit and universal credit to the first two children in most households.
Campaigners say it pulls more than 100 children across the UK into poverty every day – and reports suggest Ms Reeves could lift the controversial cap in her autumn Budget next month.
However, Philip Davies – who was Tory MP for Shipley between 2005 and 2024 – criticised the letter sent to Ms Reeves.
The letter claims that while betting companies in the UK have experienced significant growth in sales in recent years, they employ relatively few people and are often based outside the UK to reduce tax liabilities.
Ms Dixon said: “It is unacceptable that we live in a country where gambling company profits soar, while millions of children live in poverty.
“The issue of child poverty is particularly prescient across the Bradford district, and here in my constituency of Shipley, where we have thousands of children living in poverty.
"Ending the two-child benefit cap would lift hundreds of thousands out of poverty almost immediately.
“The harms from gambling have a significant impact on families and on our public services. It’s time to confront these excessive profits, reduce gambling-related harm, tackle poverty and ensure gambling is taxed fairly.”
In response, Mr Davies says: “I am afraid this shows muddled thinking and ignorance from Anna.
"If she wants as much money as possible to be raised from gambling taxes to pay for child poverty reduction measures, then by definition she is encouraging more people to gamble – as the more they gamble the more money there would be for those measures.
"Gambling is already the highest taxed sector in the country. Increasing taxes further will simply lead to more and more people using the black market to gamble which will offer no protection to punters and will generate no tax revenue for the Exchequer."
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