Rachel Reeves Faces Criticism Over Appearance at Gambling Industry Event Amid Tax Review

Published: 20 September | The English Chronicle Desk

Rachel Reeves, the UK chancellor, is facing mounting criticism over her decision to appear as the guest of honour at a private event hosted by a leading gambling lobbyist, just as the Treasury undertakes a review into taxes on the £12 billion gambling sector. The controversy has raised questions about political judgment, impartiality, and the possible influence of industry ties on government policy.

The event in question is scheduled to take place during the Labour Party conference in Liverpool, organised by corporate communications firm Brunswick. According to invitations seen by the media, it will be hosted by Michael Dugher, the chair of the Betting & Gaming Council (BGC) and a part-time senior adviser at Brunswick. Dugher, once a Labour MP and a close ally of Reeves, has become one of the most prominent defenders of Britain’s gambling industry, often pushing back forcefully against regulatory pressures and tax hikes that could harm his members’ profits.

Dugher has publicly acknowledged his lobbying efforts to dissuade the Treasury from raising duties on gambling, particularly online betting platforms and casinos. Former prime minister Gordon Brown has called for higher levies on the sector, suggesting an additional £3 billion in taxes could help fund vital welfare reforms such as ending the controversial two-child benefit cap. If the Treasury decides against raising these duties, gambling firms could save billions of pounds—a scenario that critics argue raises troubling questions about Reeves’ association with Dugher at such a sensitive time.

The personal and political connections between Reeves and Dugher only add to the controversy. Their friendship stretches back to their teenage years, and they have previously shared a parliamentary office in Westminster. Dugher has claimed he remained in contact with Reeves during the BGC’s recent campaign against tax increases, although Reeves has insisted she has never held a formal meeting with the organisation or discussed potential tax changes.

Nonetheless, her attendance at the Brunswick reception has triggered concerns across the political spectrum. Iain Duncan Smith, the former Conservative Party leader, described her decision as deeply problematic, saying it “raises real questions about the chancellor’s judgment and impartiality on this matter particularly when it is already widely known that she has taken both recent hospitality and donations from the sector.” Records show Reeves accepted three tickets worth £330 to a musical from the BGC in 2023, along with £20,000 in donations from gambling executives while Labour was still in opposition.

Liberal Democrat Treasury spokesperson Daisy Cooper echoed these concerns, urging Reeves to rethink her participation. “Online gambling is one of the places where she should be looking to raise revenue for our public services. If she fails to do so at the budget she will have serious questions to answer over whether events like this one influenced her at all. To show she cares about taxpayers more than big gambling firms the chancellor should commit to raising taxes on online gambling giants ahead of the budget,” Cooper said.

Campaign groups have also weighed in, questioning the optics and timing of the event. Tom Brake, a former Liberal Democrat MP and current director of Unlock Democracy, called Reeves’ acceptance “very strange timing” and suggested she “should have politely declined.” Brake argued that this sort of overlap between personal connections, industry lobbying, and government decision-making could eventually be scrutinised by the ethics and integrity commission, a new watchdog set to be launched in the coming months.

Brunswick, for its part, has attempted to distance Dugher’s gambling industry ties from its Labour conference event. A spokesperson stressed that Dugher’s work for the public relations firm was “completely separate” from his role as BGC chair. “For many years Brunswick has hosted a reception at the Labour Party conference which enables senior business leaders to engage with a number of ministers and MPs. Michael is a part-time senior adviser to Brunswick, and his work with us is completely separate from his other roles. He will be hosting the event jointly alongside partners from Brunswick’s public affairs team,” the company said in a statement.

The debate over gambling taxes highlights deeper fault lines within Labour itself. Gordon Brown’s push for higher levies underscores the tension between using the gambling industry as a source of much-needed revenue for social programmes and maintaining relationships with powerful lobbyists and long-standing allies like Dugher. Meanwhile, Reeves is preparing to unveil her second budget as chancellor, expected within weeks of the Labour conference, where the question of gambling duties could become a defining test of her credibility and independence.

Critics argue that the optics of sharing a platform with Dugher at such a critical time risks undermining public trust in the Treasury’s review. With estimates suggesting that online gambling firms alone could face billions in additional taxation, any decision Reeves takes will be scrutinised closely—not only for its economic impact but also for signs of undue influence from within her political and personal circles.

The controversy also sheds light on the broader debate over gambling regulation in the UK. While industry leaders have long argued that they already contribute significantly to public finances and should not face punitive taxation, campaigners stress the social costs of gambling addiction and the need for stricter oversight. By appearing at an event closely tied to the sector’s leading lobbyist, Reeves risks giving ammunition to those who fear the government may prioritise corporate interests over public welfare.

As the Labour conference approaches, pressure on Reeves continues to build. Whether she attends the event or ultimately withdraws, the episode has already raised uncomfortable questions about transparency, impartiality, and the role of lobbying in shaping government decisions. At a time when the Treasury is expected to deliver difficult choices on revenue and spending, the perception of undue influence could prove politically damaging for a chancellor tasked with presenting herself as a guardian of economic responsibility.

For now, all eyes will be on Liverpool, where Reeves’ presence at the Brunswick event will likely become a litmus test not just of her political judgment, but also of Labour’s ability to balance industry connections with the growing demand for accountability and integrity in public life.