Rachel Reeves Told to Ignore Gambling Lobbyist Invite Amid Tax Review

Rachel Reeves has been urged to turn down an invitation to attend an event hosted by a high-profile gambling lobbyist. Michael Dugher, the chair of the Betting and Gaming Council (BGC), is poised to hold a private reception on September 28, which coincides with the start of the Labour Party Conference in Liverpool.

The Chancellor of the Exchequer has been slated to appear as a guest of honour, but her invitation has sparked controversy, given that the government is currently weighing up plans to initiate a hike in gambling taxes. Reeves is preparing to deliver her second Budget at the end of November, and a wave of tax announcements will be made in a bid to shore up the economy.

Currently, the UK gambling sector is thought to be worth as much as £12 billion. However, there has been criticism voiced by several MPs and a parliamentary standards campaigner about Reeves going along to the BGC event.

Former Conservative leader Iain Duncan Smith suggested Reeves’ attendance would “raise real questions about her impartiality and judgment on the matter”.

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Reeves urged to get her priorities in order

Reeves has been no stranger to controversy as Chancellor. Meanwhile, attending a private reception staged by a gambling lobbyist group could put her on a collision course with her party, given the precarious nature of the economy and her seniority within the Labour ranks.

Among those who have expressed their disapproval of Reeves’ appearance at the BGC event is Daisy Cooper MP. The Liberal Democrats’ Treasury spokesperson said:

“The chancellor should think long and hard about whether she should appear at this event.

“Online gambling is one of the places where she should be looking to raise revenue for our public services. If she fails to do so at the budget she will have serious questions to answer over whether events like this influenced her at all.

“To show she cares about taxpayers more than big gambling firms the Chancellor should commit to raising taxes ahead of the budget.”

Conflict of interest?

Dugher and Reeves supposedly have a long political and personal friendship stretching back to their teenage years. Moreover, Dugher, who once shared a parliamentary office with Reeves in Westminster, claimed to have reached out to Reeves earlier this year during a BGC tax campaign.

In response to Dugher’s claim, Reeves insisted she has not had a meeting with the BGC. She was also adamant that there weren’t any discussions held over proposed tax changes.

Significantly, Reeves’ relationship with the BGC has been called into question, and she has accepted gifts in the past. This included three tickets to a musical with a face value of £330, while she also received £20,000 in donations from gambling executives when Labour were in opposition.

Pulled in different directions

Reeves has so far been pulled in different directions with the gambling tax debate raging on. There have been claims that hiking the gambling tax would bolster the government coffers by £3 billion, which in turn could be used to tackle child poverty.

Such arguments have been put forward by former Prime Minister Gordon Brown, while think tanks, such as the Institute for Public Policy Research (IPPR), believe raising taxes wouldn’t impact overall government revenues.

The gambling lobbyists have been working hard to get Reeves on their side. While Reeves has been tight-lipped so far about the industry, attending the BGC event would raise more eyebrows.