Major British industry to slash jobs and close high street stores ahead of bruising Budget

Betting firms warn another tax increase could lead to more job losses and shop closures before the October 28 Budget

Betting firms warn another tax increase could lead to more job losses and shop closures before the October 28 Budget

More than 4,500 jobs have been lost across Britain's gambling industry since last November, according to figures from the Betting and Gaming Council.

The trade body said more than 540 betting shops had also closed during the same period, as gambling operators warned further tax increases could lead to additional job losses and closures.

Labour has maintained that the betting shop closures cannot be attributed to its fiscal decisions, while operators argue that higher taxes have contributed to restructuring across their retail businesses.

With another Budget due on October 28, gambling firms are warning that further tax increases could place additional pressure on the sector.

Betfred announced last month that 132 of its shops would close, resulting in 600 job losses.

Evoke, the parent company of William Hill, has withdrawn from 270 locations since the Budget was delivered.

Ladbrokes owner Entain also announced last month that approximately 500 roles would be cut from its workforce.

The tax increases introduced by former Chancellor Rachel Reeves included a rise in the levy on online gambling products, including casino games and slots, from 21 per cent to 40 per cent.

Sports betting duty was also increased from 15 per cent to 25 per cent.

Major gambling operators argue that their online and retail businesses operate from the same overall balance sheet, meaning higher taxes on online gambling can affect their high street operations.

The sector is also facing increased costs from higher wages, employer National Insurance contributions and business rates.

The gambling industry is now seeking assurances from Chancellor John Healey and Prime Minister Andy Burnham that further tax increases will not result in additional job losses ahead of the October 28 Budget.

Mr Burnham has previously supported tighter regulation of the gambling sector, including measures aimed at tackling slot machine shops.

The Social Market Foundation has recommended a £460million tax increase on the gambling industry, which could be considered as the Government looks for additional revenue.

A gambling minister has yet to be appointed by Mr Burnham, with Lisa Nandy currently holding the brief as minister for digital, culture, media and sport.

Gambling operators have also warned that higher taxes could encourage customers to use unregulated black-market bookmakers, which operate outside Britain's regulatory framework and consumer protection measures.

The Betting and Gaming Council said: "Doubling of online gaming duty is already hammering betting businesses. The Treasury may pretend these tax rises only hit online gambling but that is not how the industry works."

The trade body added: "These are the consequences of the previous Chancellor's damaging tax rises.

"They are bad for jobs, bad for high streets and bad for sport and hand a huge advantage to the unsafe, unregulated black market."

Betfred founder Fred Done has also warned about the impact of customers moving to offshore gambling operators, arguing that businesses based outside Britain do not contribute the same tax revenues to the UK Exchequer.

The gambling industry is now calling on the Treasury to consider the impact of any further tax increases on betting shops, jobs and the regulated gambling market before the October 28 Budget.