Reports point to UK machine games duty rising to 25% in Autumn Budget

Chancellor John Healey is reportedly preparing a five percentage point rise in Machine Games Duty for category B gaming machines, taking the standard rate from 20 per cent to 25 per cent. The Times, relying on sources it did not name, reported the plan ahead of the Autumn Budget. Confirmation is due when the Budget is presented on October 29.

The Social Market Foundation put forward a doubling to 40 per cent in June, and a letter from Labour MP Alex Ballinger asking the government to take up that recommendation drew backing from 90 Labour MPs. Gordon Brown, a former Prime Minister, has likewise argued in public for a higher MGD rate, saying the extra tax revenues could pay for steps to ease rising living costs.

It was reported that the retail gaming sector has faced uncertainty over possible restrictions on betting shops and adult gaming centres. It said Prime Minister Andy Burnham has stated opposition to Adult Gaming Centres and has expressed support for ending the 'aim to permit' rule, which would give local authorities greater powers to restrict the number of betting shops in their areas.

The source gives background on the previous Autumn Budget. Gordon Brown and the Social Market Foundation had called for Remote Gaming Duty to rise to 50 per cent and General Betting Duty to 25 per cent. Remote Gaming Duty was raised to 40 per cent from April 2026 and General Betting Duty will rise to 25 per cent from April 2027, with retail betting and horse betting exempted from the increase.

Category B devices, able to pay out as much as £500, are the most widespread electronic gaming machines in UK betting shops, arcades and bingo halls. Their duty is tiered: stakes of up to 20p are charged at 5 per cent, stakes of up to £5 at 20 per cent, and anything above £5 at 25 per cent. Category C machines, usually sited in pubs, are taxed at 20 per cent, and devices with lower stakes at 5 per cent.