Andy Burnham Business Tax Changes: Could Betting Shops Be Next?

Andy Burnham business tax changes are aimed at helping pubs, clubs and live music venues. They have also raised fresh questions for Britain's betting industry.

The Prime Minister has announced a 20% cut to business rates for around 32,000 hospitality and entertainment venues from April 2027. The £100 million package is designed to revive struggling high streets by reducing costs for businesses the government believes play an important role in local communities.

What makes the announcement notable for gambling, however, is how Burnham says it will be funded.

Speaking to reporters following the announcement, the Prime Minister argued that not all businesses should be treated equally under the tax system.

‘You can't see all businesses the same, some do real good in communities. Other businesses can cause social harm… Adult Gaming Centres on high streets can often bring real harm to communities... It's about developing a business rates regime where we give incentives to the businesses that give benefits, and look differently at the ones that cause social harm.’

Which companies bear the brunt?

While vape shops are the only business named explicitly in the official press release, Burnham did mention AGCs when speaking to the press. These subsequent comments suggest the government is beginning to draw a distinction between businesses it believes strengthen communities and those it considers socially harmful.

That could represent a notable shift in the debate around gambling, particularly if AGCs do come under fire.

Until now, government policy has largely focused on regulation through licensing, advertising restrictions and consumer protection measures. Burnham's comments indicate taxation itself could increasingly become another policy tool.

Where do betting shops fit in Burnham’s tax plans?

For now, the government's comments around gambling venues have focused exclusively on Adult Gaming Centres, leaving bookmakers in an uncertain position.

Retail betting shops were already excluded from the Retail, Hospitality and Leisure business rates relief introduced earlier this year. But, Burnham has stopped short of saying whether bookmakers could also face higher business rates under the new regime.

That uncertainty has not gone unnoticed within the industry. JenningsBet CEO Greg Knight took to LinkedIn this week. Knight warned that betting shops are often ‘tarred with the same brush’ as Adult Gaming Centres, despite offering a very different customer experience.

Knight argued that betting shops provide a social environment. One centred around live sport, contribute directly to horse racing and greyhound racing through levy payments, and should not be viewed in the same category as machine-led gaming venues.

Burnham has long taken a tough stance on gambling

Burnham's comments, unsurprisingly, fit with his broader record on gambling policy.

Before becoming Prime Minister, he supported calls from local authorities for greater powers to control gambling venues. He also backed efforts to review the ‘aim to permit’ principle that currently governs planning decisions for new gambling premises.

Whether bookmakers are ultimately brought into Burnham's business rates reforms remains to be seen. For now, only Adult Gaming Centres have been singled out. Introducing the idea that business taxes should reflect a company's social impact is new though. With this idea, the Prime Minister has opened a debate that could eventually extend well beyond AGCs.