Bacta calls for fair policy on machine games duty

Bacta, which represents the low-stakes amusement sector in the UK, has sent a letter to Chancellor John Healey. The letter was signed by 120 independent operators, and their demand is that the Machine Games Duty be kept at 20 percent.

Rumours have circulated for months that this duty will be increased in the budget Healey is due to announce on 28 October. Some expect the rate to rise to 25 percent, while others fear it could climb as high as 40 percent. This uncertainty has prompted the sector to launch a joint lobbying campaign.

The signatory businesses say that legal limits prevent them from passing on the rising costs to customers through higher prices. Energy bills, commercial rents, wage increases and higher employer National Insurance contributions are adding further pressure. They also point out that VAT paid by businesses, which cannot be reclaimed, reached 56 million pounds in 2025.

According to Bacta, a further increase would work against the goal of supporting growth. If arcades were forced to close, the impact would reach a wide supply chain, from cleaning and security firms to food suppliers, taxi drivers and professional service providers. Bacta stresses that job losses would be especially severe in areas where employment opportunities are already limited.

Bacta Chairman Joseph Cullis highlighted the social value of the businesses, saying that the industry understands the difficult choices facing the Treasury but asks that the consequences be taken into account. Cullis said that replacing closed businesses would be very difficult.