Gordon Brown Calls for Machine Games Duty Rise to Support Energy Bill Relief

Former UK Prime Minister Gordon Brown put forward a plan to increase machine games duty on gaming machines located in betting shops and adult gaming centres, with the aim of raising up to £500 million that could help cover rising household energy costs amid ongoing price cap adjustments. Brown presented the idea during an appearance on BBC Radio 4’s Today programme, where he tied the tax adjustment directly to the need for additional public funds as energy expenses continue to climb for many households across the country.

The proposal arrives at a time when energy price caps have undergone several revisions, creating pressure on government resources allocated to bill support schemes. Observers note that Brown framed the machine games duty hike as one targeted revenue stream capable of contributing meaningfully without broad tax changes, and he positioned the measure as a way to balance industry contributions with immediate consumer relief needs.

Background on the Machine Games Duty Proposal

Machine games duty applies specifically to gaming machines found in betting shops and adult gaming centres, and raising this rate forms the core of Brown’s suggestion for generating the projected £500 million. The former prime minister highlighted how current duty levels leave room for adjustment, and he argued that the additional funds could flow toward energy bill assistance programmes already in place or under expansion. Data from recent months shows household energy costs have remained elevated even after cap adjustments, prompting various proposals for new revenue sources.

Brown’s comments on the Today programme emphasised timing, since energy price cap increases have occurred multiple times in the past year and further support measures may require fresh funding streams. Those who follow fiscal policy note that machine games duty has not seen major rate changes recently, which makes it a potential candidate for the scale of revenue Brown described.

Industry Groups Respond to the Suggested Tax Increase

The Betting and Gaming Council issued a swift response, warning that an increase in machine games duty at the proposed level would accelerate the closure of betting shops across the UK. Council representatives pointed to figures indicating that more than 2,900 shops could face closure, which in turn would lead to over 21,000 job losses in the sector. The group also highlighted a potential reduction of around £70 million in contributions that currently support British horseracing through the levy and media rights agreements.

Betting and Gaming Council statements stressed that the tax rise would compound existing pressures on high-street operations, many of which already operate on thin margins. Council data shows a steady decline in betting shop numbers over recent years, and the organisation argued that further duty increases would speed up that trend rather than allow gradual adjustment.

Horseracing Sector Concerns Surface

The British Horseracing Authority echoed the Betting and Gaming Council warnings, noting that reduced funding from betting shops would directly affect racing finances and the viability of community betting locations. Authority statements indicated that the £70 million figure represents a critical portion of the sector’s income derived from the levy and media rights, and any shortfall would require alternative support mechanisms that have not yet been identified.

Those who track racing economics point out that community betting shops serve as important local hubs, and their potential loss would extend beyond employment figures to affect prize money distribution and grassroots racing programmes. The British Horseracing Authority has previously documented how betting shop contributions help sustain race meetings and training infrastructure, making the proposed duty change a direct concern for long-term sector stability.

Current Context Around Energy Prices and August 2026 Developments

Energy price cap adjustments have continued into 2026, with the latest review period running through August and producing new bill levels for households. Brown’s proposal on the Today programme references these ongoing increases as the immediate backdrop for seeking additional revenue, and he suggested the machine games duty change could be implemented in a way that aligns with the next cap cycle.

Figures released by energy regulators show that support schemes funded through general taxation have already absorbed significant sums this year, which leaves limited headroom for further expansion without new sources. Brown’s £500 million target reflects calculations based on current machine games duty yields and projected uptake after a rate adjustment.

Conclusion

The proposal to raise machine games duty remains under discussion following Brown’s radio appearance, with industry responses focusing on employment and sector funding impacts while the energy price cap context continues to evolve through August 2026. According to reports covering the announcement, both the Betting and Gaming Council and the British Horseracing Authority have outlined specific risks tied to shop closures, job reductions, and horseracing contributions, and these points now form part of the broader debate around revenue options for energy bill support.