Betfred Warns UK High Street Over Tax Hike Risks

Betfred has sounded the alarm over proposed government tax increases, cautioning Rachel Reeves and the Labour Party that UK high streets could suffer severe consequences if recommendations by former Prime Minister Gordon Brown are implemented.

Owner Fred Done told the BBC that the potential hikes represent “the biggest threat to the industry in 57 years”, highlighting the unprecedented risk to retail betting operations.

Economic Impact and High Street Pressures

Despite two loss-making years, £71m in 2023 and £35m in 2024 the Done family has continued investing in Betfred’s high street estate, seeing post-pandemic consolidation as an opportunity to strengthen the operator’s leading position in the UK.

In 2025 alone, the group contributed £273.4m in taxes, making it Britain’s second largest taxpayer in the sector. Betfred warned that additional levies could exacerbate the ongoing decline of retail spaces already facing widespread closures.

Chief Executive Joanne Whittaker told The Sunday Times that the Treasury underestimates the economic and social role of retail betting, emphasising that high street shops provide a safe, responsible environment for customers.

“The average bet in our shops is £9. People come in for a chat, enjoy a coffee, and place a bet responsibly. We are not the scourge of society,” Whittaker explained.

Retail Closures Across the UK and Ireland

The warnings follow Flutter Entertainment’s UK & Ireland business announcement that nearly 60 Paddy Power shops will close, impacting 247 jobs. Closures include 28 in the UK, 28 in Ireland, and one in Northern Ireland, with affected employees offered redeployment support where possible.

A Flutter UKI spokesperson confirmed the closures, citing rising costs and market challenges, while reiterating that high street operations remain a core part of customer engagement, alongside efforts to innovate and integrate online and retail betting experiences.

Industry Concerns Over Tax Policy

Both Betfred and Flutter argue that significant tax hikes could undermine retail betting, potentially encouraging growth of the black market while destabilizing established operators. The industry has worked to provide a modern omnichannel experience, linking in club and online services, yet excessive taxation risks undoing these efforts.

As digital adoption rises and retail challenges mount, Betfred’s warnings underscore the delicate balance between regulatory policy, taxation, and the sustainability of high street gambling venues in the UK.