As the dust begins to settle on the 2025 Autumn Budget, we’re left with mixed opinions when it comes to what the changes will mean for UK businesses.
While many welcome the support being offered by the bumper £4.3 billion business rates support package, this Budget balances higher spending with increases in taxes, which could be detrimental to businesses in the long run.
One industry that’s certain to be hit hard by an increase in taxes is the gambling industry, with a major hike in Remote Gaming Duty, from 21% to 40%, expected to bring in an additional £1.1 billion a year.
However, those within the industry warn that it could cause widespread job losses and a serious shortfall as gambling companies buckle under the strain of the high tax. It’s a seriously mixed bag for businesses, but what could its impacts actually be?
How is the New Budget Impacting Businesses?
A Boosted Support Package for Businesses
There’s been a lot of focus on the potential negative impacts of the Budget, but there’s also a lot that could help. As we referenced earlier, there’s a sizable £4.3 billion support package coming the way of UK businesses.
The support will be introduced from April 2026, alongside a cap on the increases in business rates. The intention is to stimulate growth across businesses in the UK and offer much-needed support to those struggling with spiralling operating costs.
Businesses in leisure, hospitality, or retail could also see themselves saving big as the Government unveiled permanent lower business tax rates on over 750,000 properties in the sectors. They estimate it will save those within the industries around £900 million a year when it comes into place from April 2026.
We also didn’t see an increase in corporation tax from 25%, meaning the UK still has the lowest rate in the G7. To support the growth of new businesses, Reeves announced a three-year stamp duty exemption for new UK listings.
There’s an upcoming reform to ISAs, which should encourage more people to invest in UK businesses, generating an estimated £3 billion of retail investment throughout the country.
Supporting and Stimulating Growth
This Labour Government won on promises of delivering growth for all businesses throughout the UK. In July, they released their plan on how they would back small and medium sized businesses throughout the country, promising that “growth is the Government’s number one mission”.
The Chancellor, Rachel Reeves, says that the new Budget delivers on these promises by making things easier for businesses, especially those struggling.
On top of the provisions we’ve already discussed, Reeves also unveiled a permanent 40% First Year Allowance for main rate assets. Capital allowances allow businesses to write off the costs of assets, such as machinery and equipment, against their taxable income.
The new allowance is designed to increase investment in capital goods by allowing businesses to write off more. It also extends the measure to unincorporated businesses and assets that are purchased for leasing, which have been previously excluded from allowances.
Many have argued that since companies already benefit from unlimited full expensing and £1 million of Annual Investment Allowance (allowing businesses to write off 100% of expenditure on assets), the change won’t make much of a difference.
The move will be felt by unincorporated businesses and companies purchasing assets for leasing, who were previously excluded from these allowances but will now be included.
UK Gambling, an Industry on the Edge
If there’s one industry that has come out poorly from the Budget, it’s gambling. Reeves announced an increase in the Remote Gaming Duty, which the likes of online casinos pay. It’s a sizable bump, with the rate jumping from a 21% to 40% tax on all remote profits from the 1st of April 2026.
The increase was also higher than many providers were expecting, leaving many in the industry concerned that rising costs would push punters to black market gambling. As unlicensed providers won’t have to follow regulations, they could capitalise on the increase with bonuses and limits, which would be unaffordable to the reputable providers.
The already growing black market, which is estimated to receive £2.7 billion in stakes every year, is a severe risk to players. It has no protections and lax security methods, and it doesn’t follow responsible gambling principles, leaving players and their personal information extremely vulnerable.
Further Changes to Gambling Duties
The Remote Gaming Duty wasn’t the only one in the firing line in this Budget; we also saw an increase in the General Betting Duty. The remote rate will be increased to 25% from 15% for bets made online, excluding horseracing, where it will remain the same.
Horseracing escaped the hike as betting operators already contribute 10% towards the statutory Horserace Betting Levy, meaning they already pay 25% overall. It’s a welcome relief as the British Horseracing Authority estimated an increase would have put 2,752 jobs at risk and resulted in a revenue loss of £330 million in the first five years, risking the future of the sport.
The Budget also announced the Government’s intention to abolish the Bingo Duty from the 1st of April 2026. Previously, bingo providers paid a lower tax rate of 10%, however, Reeves announced that it’s set to be cut completely.
Bingo operators have long been arguing in favour of the move, saying that their product is more socially focused than other gambling products and they run on tighter margins. It’s a rare tax cut and is hoped to breathe life back into an industry that has been on the decline ever since COVID-19.
How did the Chancellor Justify Raising Taxes?
Reeves has responded to concerns by promising the Government will dedicate an additional £26 million over the next three years to help the Gambling Commission tackle the black market. She also said the increases were being targeted specifically at online casinos, which she deemed as causing the most harm.
She acknowledged the likes of horseracing and bingo halls add value to society, hence they escaped the tax hike, however, Reeves didn’t think the same could be said of things like online slots.
She said the increase in tax would hopefully make the providers of these products move away from flashy deals and enticing odds, causing players to move away from products that can cause the most harm.
Industry Reaction
It’s fair to say that the news has been met with concern from the industry. Three of the major players in the UK, Rank Group, Evoke, and Entain, warned of major job losses or slashed profit forecasts. They also project a black hole in profits worth millions of pounds.
As providers struggle to pay the rising taxes, they’ll cut costs, investments, and jobs, which will have a detrimental impact on the economy overall. They pointed out that the percentage increase doesn’t benefit anyone if the overall share it’s taken from decreases, which it’s set to do.
The Betting and Gaming Council called the increase a “devastating hammer blow” for the sector and warned that it would further push players to the unregulated and dangerous black market. As providers are strapped for cash, the better odds and bonuses found at black market casinos will look appealing.
How Will the Budget Impact Business?
While the Government promised an increased support package, alongside the 40% First Year Allowance, many argued that their promises weren’t as generous as they first appeared.
The majority of businesses in the UK already benefit from unlimited full expensing, so the change will only affect unincorporated businesses or those buying to lease.
The UK’s gambling industry is set to be hit hard by the steep hike in taxes, almost doubling from 21% to 40%. Some of the country’s biggest providers have warned of profit losses ranging from tens of millions and stretching into hundreds of millions of pounds, alongside severe job losses.
Although bingo and horseracing have escaped the increase, it could be a bleak few years for the UK’s gambling businesses.
