Non-recoverable VAT on Bacta members hit £56m in 2025, squeezing cash left to reinvest.
The hit
Bacta, the UK’s low-stakes entertainment trade body, has published a letter signed by 120 independent businesses urging chancellor John Healey to keep Machine Games Duty at 20%. The letter, released hours before the budget, warns an increase would put jobs & family businesses at risk, according to SBC News.
Why it matters
Operators say they cannot offset higher duty because stake & prize limits are fixed by law, leaving no way to pass costs on. Bacta argues venue closures would ripple through cleaning, security, food & taxi firms that depend on them, with jobs lost in areas with historically limited work opportunities. Bacta president Joseph Cullis said the signatories sit “at the heart of high streets and seaside communities across the country.”
The record
| Current Machine Games Duty rate | 20% |
|---|---|
| Rumoured rate options | 25% or 40% (industry speculation, per SBC News) |
| Non-recoverable VAT paid by Bacta members | £56m in 2025 (Bacta) |
| Letter signatories | 120 independent businesses (Bacta) |
| UK budget date | 28 October 2026 |
Sources: Bacta demands fair tax policies ahead of UK budget
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