Lib Dem leader Sir Ed Davey proposes doubling levy on online gaming

Liberal Democrat leader Sir Ed Davey has proposed doubling the tax levied on profits from online gaming.

The MP suggested a change to Remote Gaming Duty as a potential “alternative” to some of the tax rises that were announced by the Chancellor on Wednesday.

Remote Gaming Duty is a tax charged on gaming provider profits “from remote gaming” such as those played online, according to the Office for Budget Responsibility.

From April 2019 it has been levied at 21%.

Addressing a lunch with members of the parliamentary press gallery in Westminster on Thursday, Sir Ed said: “In constituencies across the country there’s an epidemic of problem gambling, it’s a real social issue, and many people have been analysing it and thinking about it.”

A report from the Social Market Foundation think tank earlier in October made the case for doubling the tax from its current level to “at least” 42%.

“I would have thought a government who wants to tackle our social problems would have taken their idea, which is to double the duty,” Sir Ed said.

The party leader claimed that “if you double remote gaming duty, and I now propose it, you would get up to £900 million.

“You wouldn’t have to have this inheritance tax hit for farms, for example.”

“We’re going to vote against it,” he told the event.

Rachel Reeves announced on Wednesday that from April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax.

But for assets over £1 million, inheritance tax will apply with 50% relief at an effective rate of 20%.

Sir Ed said he thinks the changes show “a huge lack of understanding of rural communities” and  claimed the plan “doesn’t raise very much money”.

He described farmers as having had a “really really tough period” in recent years, and predicted that some will be “really alarmed” by the proposal.

Earlier on Thursday, shadow business secretary Kevin Hollinrake told the Commons that farmers could have to stump up hundreds of thousands as a result of the changes.

The Conservative MP said: “Their choice was to hit businesses and that’s because there’s not an ounce of business experience amongst any of them. Labour’s death taxes will hit farms and businesses.

“Families with a typical farm will have to fund hundreds of thousands of pounds or see their farms broken up and sold.”