Billionaire John Caudwell is calling on Chancellor Rachel Reeves to introduce new taxes on online gambling. The Phones4U founder, who sold his business for £1.5bn in 2006, has publicly supported Labour but has expressed frustration with the government after one year in office. Caudwell switched from Conservative to Labour in 2024 and now runs a luxury property business along with his think-tank, Caudwell Strong Britain.
Why Online Gambling Needs Higher Taxes
Caudwell argues that online gambling causes “mayhem in society,” with individuals spending excessive time and money on digital betting, often at the expense of family finances. He believes an online gambling tax could generate up to £5bn for the Treasury. Industry experts warn, however, that higher levies may drive players to black market platforms.
What Caudwell Wants Labour to Do
- Take a “radical” approach in the November Budget.
- Raise VAT by 1p rather than increasing taxes on entrepreneurs.
- Increase duties on alcohol and cigarettes.
- Introduce a “carbohydrate tax” to encourage healthier eating habits.
- Cut government spending by 1% to reduce civil service waste.
How This Reflects Labour’s Challenges
Caudwell rates Labour’s performance so far at 3/10, citing past Budget decisions that impacted entrepreneurs and landowners negatively. He suggests that acknowledging past mistakes and implementing radical policies could improve their score to 7/10. Despite his criticisms, Caudwell remains a Labour supporter but warns that without decisive action, the party risks losing the next election. He views reform initiatives as necessary to prevent wasted time and to implement bold, societal-focused policies.
