Billionaire supporter of the Labour Party, John Caudwell, has recommended that the Chancellor impose higher taxes on online gambling companies, citing their negative impact on society. Caudwell, the founder of Phones4U, also advocated for increased taxes on alcohol and tobacco. He urged Rachel Reeves and Labour leader Sir Keir Starmer to adopt a bold approach to public finances, asserting that the upcoming Budget in November will be crucial for the Government’s future.
Caudwell proposed that Labour revise its stance on not raising taxes for “working people” and suggested a 1p increase in VAT by Reeves. The former Tory donor, who switched his support to Labour in the last general election, emphasized the need for higher taxes on online gambling firms, aligning with former Prime Minister Gordon Brown’s views on addressing the undertaxed profits in the gambling industry.
In an interview with the Financial Times, Caudwell expressed concerns about the societal impact of online gambling and proposed that an online gambling tax could generate up to £5 billion. He also recommended implementing a new “carbohydrate tax” to promote healthier food choices. Caudwell criticized Labour’s past Budget decisions, particularly the rise in employers’ national insurance contributions.
When evaluating the government’s performance, Caudwell indicated that he would rate them poorly if they continued with past policies but would give a higher score if they acknowledged mistakes and pursued better strategies. Despite some disillusionment with Keir Starmer’s administration, Caudwell stated he had no intentions of switching support to other political parties.
Caudwell also expressed reservations about Nigel Farage’s Reform UK party, criticizing their stance on immigration and climate change. Notably, Caudwell, who founded Phones 4u in the late 1980s and later sold it for £1.5 billion, emphasized his commitment to philanthropy and responsible wealth management, opposing the idea of a wealth tax.
In a previous interview with the Mirror, Caudwell emphasized his desire not to be defined solely by his billionaire status, highlighting his philanthropic efforts and participation in the Giving Pledge initiative.