Lib Dems Leader Makes Radical Suggestion Over 42% Gambling Tax Proposal Increase

The Lib Dems have waded in on the ongoing gambling tax debate this week by making a bold pledge at the party’s annual conference in Bournemouth. Leader Sir Ed Davey wants the Remote Gambling Tax (RGD) to be raised substantially from 21% to 42%.

There have been signs, based on Treasury discussions, that Pool Betting and General Betting Duty rates may remain unchanged. Nevertheless, the online gambling operators would still be forced to shoulder the majority of the tax burden.

Debate has been swirling around in recent months about the potential level of tax hikes, and more details are set to be revealed in the Budget on November 26. However, the Lib Dems have placed health concerns at the centre of their motion on gambling taxes.

Tackling NHS shortfalls

At the heart of the Lib Dems’ desire for tougher reforms on the gambling industry has been tackling urgent gaps in the NHS. Max Wilkinson, a Lib Dem MP, has been unequivocal on the matter, explaining how the NHS could benefit from a tougher gambling tax policy.

He said: “These reforms would not only save lives, but raise hundreds of millions of pounds to help fund NHS treatment for gambling addiction and prevent future harm.

“The gambling industry has had a free pass for too long. Lib Dems will hold it to account and put people before profits, so that gambling in the UK can be safe, fair, and free from harm.”

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What are the figures saying?

There have been plenty of figures bandied about in recent weeks concerning the impact of increasing gambling taxes. However, the Lib Dems have made some persuasive arguments about the health implications of problem gambling.

One telling point of the party’s motion was quoting the Department of Health’s study examining problem gambling. This estimated that gambling costs the government and society between £1.05 billion and £1.07 billion per year.

Intriguingly, the Lib Dems propped up their agreement with probing analysis from the Social Market Foundation. This showed that doubling the rate of RGD, charging on online gaming profits, would raise as much as £900 million per year.

The Lib Dems, however, have been keen to stress that the government wants to see continual growth in the gambling sector. However, this has run counter to the body of evidence that has piled up, indicating the level of problem gambling in the UK.

Lobbying in full swing

Politicians have thrown their weight behind the ongoing tax hike debate. Among the biggest supporters have been former Prime Minister Gordon Brown, who suggested that raising taxes would help the UK tackle the growing “social crisis” it faces.

Meanwhile, it emerged earlier this week that the Chancellor of the Exchequer had been invited as a special guest of honour at a lobbying event held by the Betting and Gaming Council (BGC). This had been at the request of the BGC’s chair, Michael Dugher, and she was urged to reject the invite.

Government’s financial pressures

According to figures published, the first quarter of 2025/2026 returned an online gross gambling yield (GGY) of £1.49bn. The total, meanwhile, for 2024 stood at £11.5bn.

While the government has not stipulated that the proposed tax hikes are set in stone, it has been suggested that it has to raise as much as £50bn in public finances. The GGY figure may be too tempting to ignore.