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Healey Considers Doubling Machine Games Duty to 40%

9/8/2026

11 1 Full Breakdown

Summary

Healey Proposes Tax

Chancellor John Healey is considering raising Machine Games Duty on Category B machines.
The proposal would double the rate from 20% to 40% for betting shops, casinos and adult gaming centres.
Social Market Foundation estimates the hike could raise £275 million to £458 million annually.
Regulus Partners models predict up to 4,000 betting shops and 1,300 adult gaming centres could close, risking 43,000 jobs.

Summary

Healey Budget Test

Chancellor Jeremy Healey says the October 28 budget will test the government's credibility with markets.
Healey stresses balancing day-to-day spending with tax receipts by 2029-30, matching Prime Minister Andy Burnham's goal.
Long-term UK government bond yields have risen to an 18-year high amid market turbulence from the Iran war.
The British Chambers of Commerce urges Healey to avoid new business taxes, warning they would destroy confidence.

Summary

Burnham Confirms Surcharge

Oxfam and Tax Justice UK are urging a 2% annual levy on assets above £10 million.
Institute for Fiscal Studies warns valuing private businesses, art and estates makes a wealth tax hard to administer.
Professor Ben Ansell suggested replacing council tax and stamp duty with a 0.65% property-value levy.
Burnham confirmed a council-tax surcharge on homes over £2 million will start in 2028.

History

Historical Context

The Gambling Act 2005, passed under Tony Blair’s Labour government, transferred licensing to local authorities, created the Gambling Commission and opened the market to machine-gaming venues. After the 2001 shift to a 15 % tax on gross profits and the 2014 point-of-consumption levy, betting shops multiplied. Chancellor John Healey’s 2024 proposal to raise Games Duty to 40 % draws warnings from Oxfam and Tax Justice UK.

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Healey Proposes Tax

Chancellor John Healey is considering raising Machine Games Duty on Category B machines.
The proposal would double the rate from 20% to 40% for betting shops, casinos and adult gaming centres.
Social Market Foundation estimates the hike could raise £275 million to £458 million annually.
Regulus Partners models predict up to 4,000 betting shops and 1,300 adult gaming centres could close, risking 43,000 jobs.

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