Billionaire supporter of the Labour Party, John Caudwell, has called on the Chancellor to impose higher taxes on online gambling companies, citing their negative impact on society. The founder of Phones4U also recommended increased taxes on alcohol and tobacco. Caudwell, aged 72, urged Rachel Reeves and Labour PM Sir Keir Starmer to adopt a bold financial strategy, emphasizing the significance of the upcoming Budget in November.
He suggested that Labour reconsider its pre-election promise not to raise taxes on the working class and proposed a 1p increase in VAT by Reeves. Caudwell, previously a Conservative donor who switched allegiance to Labour in the last general election, voiced his support for raising taxes on online gambling firms. This aligns with former Labour Prime Minister Gordon Brown’s call to address the significantly undertaxed profits of the gambling industry to alleviate child poverty.
In an interview with the Financial Times, Caudwell expressed concerns about the societal harm caused by online gambling, advocating for a tax that could generate up to £5 billion. The philanthropic businessman, known for his passion for cycling, also recommended the introduction of a “carbohydrate tax” to promote healthier food choices. He criticized Labour’s decisions in the previous Budget, particularly the rise in employers’ national insurance contributions.
When evaluating the government’s performance to date, Caudwell gave a low rating but expressed willingness to revise it if the right policies are implemented. Despite some disillusionment with Starmer’s administration, he affirmed his loyalty to Labour and criticized Reform UK leader Nigel Farage’s stance on immigration. Caudwell emphasized his concerns about climate change and his support for green initiatives.
Phones 4u, a major mobile phone retailer, was established by entrepreneur John Caudwell in the late 1980s. After selling the company for £1.5 billion in 2006, Caudwell ventured into property development and philanthropy. He has cautioned Labour against introducing a wealth tax, emphasizing the importance of philanthropy and responsible tax contributions.
In a previous interview with the Mirror, Caudwell expressed his aversion to being solely identified as a billionaire, highlighting his commitment to giving back. He emphasized the significance of using wealth for positive impact and was among the first British billionaires to join the Giving Pledge initiative in 2013.