Billionaire supporter of the Labour Party, John Caudwell, is advocating for higher taxes on online gambling companies, citing their negative impact on society. In addition, the founder of Phones4U is proposing increased taxes on alcohol and tobacco. Caudwell is urging Rachel Reeves and Labour leader Sir Keir Starmer to take a bold approach to public finances, emphasizing the significance of the upcoming Budget in November.
Caudwell has suggested that Labour should reconsider its pre-election promise not to raise taxes on “working people” and proposed a 1p increase in VAT by Reeves. The entrepreneur, previously a Conservative donor who switched support to Labour in the last general election, is supporting the call for heightened taxes on online gambling firms. This aligns with former Prime Minister Gordon Brown’s viewpoint on the industry’s undertaxed profits potentially lifting hundreds of thousands of children out of poverty.
In an interview with the Financial Times, Caudwell expressed concerns about the societal impact of online gambling, highlighting the need for taxation to address the issue. He estimated that an online gambling tax could generate up to £5 billion in revenue. Additionally, Caudwell, known for his philanthropy and passion for cycling, proposed a “carbohydrate tax” to promote healthier food choices.
Reflecting on Labour’s past Budget decisions, Caudwell criticized the increase in employers’ national insurance contributions. He emphasized the importance of the upcoming Budget, suggesting that a shift in policies could significantly impact his rating of the government’s performance.
Despite his reservations about Keir Starmer’s government after one year in power, Caudwell clarified that he has no intentions of switching support to other political parties. He pointed out concerns with Nigel Farage’s Reform UK party’s stance on immigration and climate change, indicating a misalignment with his own beliefs.
Phones 4u, the mobile phone giant, was established by John Caudwell in the late 1980s. After selling the company for £1.5 billion in 2006, Caudwell ventured into property investments. He has cautioned against the implementation of a wealth tax by Labour, emphasizing his commitment to philanthropy and responsible tax contributions.
In a previous interview with the Mirror, Caudwell expressed his aversion to being solely known as a billionaire, emphasizing the importance of using wealth for positive impact. Caudwell was among the early British billionaires to pledge a significant portion of his wealth through the Giving Pledge initiative.