Billionaire supporter of the Labour party, John Caudwell, has advocated for the imposition of higher taxes on online gambling companies, citing their detrimental impact on society. Caudwell, the founder of Phones4U, also recommended increased taxes on alcohol and tobacco. In a plea to Rachel Reeves and Labour leader Sir Keir Starmer, he urged for a bold financial strategy, emphasizing the significance of the upcoming Budget in November for the Government.
Expressing his views to the Financial Times, Caudwell proposed that Labour should reconsider its stance on not raising taxes for “working people” as outlined in their pre-election manifesto. He suggested a 1p increase in VAT by Ms. Reeves. Caudwell, who shifted his support from the Conservative Party to Labour in the previous general election, emphasized the necessity of imposing higher taxes on online gambling entities, aligning with former Labour Prime Minister Gordon Brown’s assertion that targeting the industry’s profits could alleviate child poverty.
Regarding his vision for a societal contribution, Caudwell recommended a tax on online gambling to generate up to £5 billion. He also advocated for increased levies on alcohol and tobacco and proposed a new “carbohydrate tax” to promote healthier food choices. Criticizing Labour’s past decisions, particularly the rise in employers’ national insurance contributions, he highlighted the need for strategic financial planning in the upcoming Budget.
Despite expressing some disappointment with the current government under Starmer, Caudwell affirmed his commitment to supporting Labour and not switching allegiance to other parties like Nigel Farage’s Reform UK. He criticized Reform UK’s immigration stance as occasionally “brutal” and expressed concerns about their position on climate change conflicting with his support for green initiatives.
Caudwell, known for founding Phones 4u in the late 1980s and later selling it for £1.5 billion in 2006, has become a prominent figure in the property sector. He has cautioned against imposing a wealth tax, emphasizing his belief in encouraging wealthy individuals to engage in philanthropy and pay their fair share of taxes.
In a reflective interview with the Mirror, Caudwell distanced himself from being solely recognized as a billionaire, underscoring the importance of utilizing wealth for positive impact. As a signatory of the Giving Pledge in 2013, he emphasized the significance of using wealth for meaningful contributions to society.