New tax hit for gambling sector in the UK

The UK gambling sector faces a new tax increase. Chancellor John Healey has raised the Machine Games Duty rate on high-stake machines from 20 percent to 25 percent. The decision had previously been announced in the traditional press.

Industry representatives have long warned that a higher tax burden would lead to the closure of physical venues and numerous job losses. The Social Market Foundation's proposal to raise the rate to 40 percent was also met with strong opposition in the sector. According to the industry, a tax at that level would cause more losses than the state would collect.

Healey said the additional revenue will be used to support small businesses. The small business exemption threshold for retail, hospitality and leisure businesses will rise from 12,000 pounds to 18,000 pounds. The minister exempted pubs and seaside arcades from the increase.

Gideon Salutin of the Social Market Foundation said they welcomed the decision. Salutin said this type of gambling carries a higher potential for harm and that public spending could be funded through this tax.