Message from Joseph Cullis Regarding Next Week’s Budget

With the Autumn Budget only a week away, I wanted to provide a short update on where we feel things stand and the work that Bacta has been doing on your behalf.

Over recent weeks, we have undertaken extensive engagement across Government and Parliament.  This has included meetings with the Exchequer Secretary to the Treasury (who is effectively the Chancellor’s number two), the Chancellor’s business engagement adviser, and the team working directly on gambling taxation. DCMS Ministers and officials have also made strong representations on our behalf, urging the Treasury not to increase Machine Games Duty.  A large number of MPs have written in support of the sector, and many of you have contacted the Treasury directly, warning of the unintended consequences of further tax rises.

Despite this, the economic outlook facing Government is bleak. The Treasury is openly searching for additional revenue and has already namechecked the online gambling industry as part of its plan to address the fiscal gap. Given the Chancellor’s manifesto commitments tying her hands, it is increasingly likely that a spread of small tax rises across multiple sectors is now on the table.

Based on the conversations we have had and our own assessment of the direction of travel, I feel the most likely outcome next week is an increase in MGD. Our expectation is that this would apply at least to B3 and possibly to Cat C as well, despite lobbying from Bacta, alongside UKH and the BBPA. At this stage, we do not believe the lower 5% rate will be raised.

I want to assure all members that whatever the Chancellor announces next Wednesday, a plan is in place for an immediate response on behalf of the sector. National Council is meeting tomorrow to discuss the mitigating steps we will be putting to Government. A full outline of that plan will be shared with members at the Convention next Thursday, and I will also follow up in writing to those of you unable to join us.

This plan will only work with the full support of our members, so please engage with us, share your insights, and help us deliver the strongest possible response on behalf of the entire sector.

You all know the position we have taken repeatedly with ministers and officials. Our sector already pays one of the highest aggregate tax rates in hospitality or leisure. I have been very clear with the Treasury that this burden cannot increase any further without costing jobs and forcing closures. 

For now, I wanted to give you advance sight of the likely direction of travel. We will of course circulate a full briefing and detailed analysis immediately after the Chancellor delivers the Budget next week.

This is an extremely busy period for all of us, but Allaster and I are very happy to answer any questions you may have. Please bear with us if replies are not immediate, as I am sure you will appreciate the number of moving parts at the moment.

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20 November 2025

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