UK Adult Gaming Centres Face Reduced Rate Relief Under New Policy

Prime Minister Andy Burnham's administration has announced a business rates policy that will cut relief for licensed adult gaming centres (AGCs) from April 2027. The change is designed to redirect financial support toward other high street businesses considered more beneficial to communities.

Businesses that the government classifies as having a harmful social impact will face elevated rates. Vape shops were the first to be named, but Burnham has since indicated that gaming venues—and possibly retail bookmakers—will also lose relief. Speaking at a pub in Harlow, Burnham defended the policy: "Pubs need to know that the cavalry is coming." He added that while some businesses are beneficial, "adult gaming centres on high streets can often bring real harm to communities."

The additional revenue from these targeted sectors will finance a £100m support package for pubs, clubs and grassroots music venues, assisting around 32,000 small independent businesses. Eligible premises will receive a 20 per cent reduction on their business rates, building on an earlier 15 per cent cut. For an average pub, the saving is estimated at roughly £1,100 per year. However, the largest live music venues, cafes and restaurants are excluded from this relief.

The policy has drawn a mixed response. The British Beer & Pub Association applauded the move, and the Music Venues Trust described it as "an encouraging first step." However, some critics argue the selective approach neglects many other sectors. Ros Morgan of the Real Rates Reform Alliance stated: "Targeted support for a small number of sectors is not a substitute for fundamental reform." Conservative shadow business secretary Andrew Griffith also criticised the lack of detail and clear funding.

The gaming industry is now seeking assurance on whether betting shops will be included in the "negative impact" category. Burnham has a history of supporting stronger local control over gambling licensing, having previously signed a letter with 38 other officials calling for greater council powers. Meanwhile, the Coalition to End Gambling Ads (CEGA) continues to gain traction, with Liverpool and Sheffield councils joining. CEGA director Will Prochaska suggested that addressing gambling advertisements could give Burnham a "quick win."

Separately, an influential think tank has proposed raising Machine Games Duty on Category B slot machines. Bacta, the trade association representing gaming halls, warned that such a tax increase would severely damage seaside arcades. Bacta President Joseph Cullis cautioned that any additional tax burden would force closures, higher prices for holidaymakers, or reduced services, ultimately diminishing the appeal of coastal trips. This warning arrives alongside a VisitBritain report showing an 18 per cent year-on-year decline in visits to England's coastline.