Rachel Reeves left the door available to a rise in gambling taxes after Gordon Brown urged her to raise levies to cover the cost of lifting the two-child benefit cap.

The Chancellor said she was "deeply concerned" about child poverty as she faced concerns about the previous prime minister's proposal to increase tasks for online gambling establishments and slots to money welfare reform.

Asked whether she was thinking about Mr Brown's recommendation, Ms Reeves said she had spoken to him last week and would set out Government policy in the autumn budget plan.

Gordon Brown stated gaming taxes need to be raised to money well-being reform (Dominic Lipinski/PA)

"So I speak with Gordon regularly, and saw him last week when I remained in Scotland," she stated.

"Like Gordon, I am deeply worried around the levels of kid poverty in Britain. No kid must grow up hungry or parents not be able to pay for the basics for their family.

"We're a Labour Government. Of course, we appreciate kid poverty. That's why among the first things we did as a government was to set up a child hardship task force that will be reporting in the autumn and (will) respond to it then."

She added: "On betting taxes, we've already released a review into gaming taxes. We're taking evidence on that at the minute, and once again, we'll set out our policies in the typical method, in our budget later this year."

Reforms to gambling levies might generate the ₤ 3.2 billion needed to ditch the two-child limitation and benefit cap, the Institute for Public Policy Research (IPPR) stated.

The think tank's newest research stated axing the policies could raise half a million children out of hardship and "reverse years of rising difficulty for low-income families".

Giving his backing to the report, Mr Brown, an image of whom Ms Reeves supposedly kept in her bed room as a trainee, said it would be the "very first important action in the war we should wage against child poverty".

The Government is anticipated to release a child poverty strategy in the fall, and project groups have stated it should contain a commitment to desert the two-child limit.

Thanks to IPPR's report, we now know that taxing betting more relatively would fully fund the very first vital step in the war we should wage versus child poverty - ending the two-child limit and raising the benefit cap

Gordon Brown

Economists have cautioned tax increases in the autumn are likely needed to plug a hole in the general public financial resources left by poor financial figures and U-turns on welfare, triggering speculation about which areas Ms Reeves may target.

The IPPR recommended increasing taxes on online gambling establishments from 21% to 50% and raising those on slots and video gaming makers, from 20% to 50%.

Mr Brown added: "Thanks to IPPR's report, we now know that taxing betting more fairly would fully fund the very first crucial step in the war we should wage versus child hardship - ending the two-child limitation and raising the advantage cap."

Labour Mayor for the Liverpool City Region Steve Rotheram heaped more pressure on the Chancellor in the future Thursday, saying that lifting 500,000 children out of hardship ought to be "a national objective".

"Gordon is spot on," he said. "The Government has a real chance to act now and change young lives across the country."

Gordon is spot on - lifting 500,000 children out of hardship need to be a national objective.

The government has a real opportunity to act now and change young lives throughout the nation.

Let's get this done. https://t.co/JQY3K0jFxp

- Steve Rotheram (@MetroMayorSteve) August 7, 2025

But a representative for the Betting and Gaming Council turned down the "financially reckless, factually misinforming" propositions which "threat driving substantial numbers to the growing, risky, uncontrolled gaming black market, which does not secure consumers and contributes zero tax".

They added: "Further tax increases, fresh off the back of Government reforms which cost the sector over a billion in lost income, would do more damage than good, for punters, jobs, development and public finances."