Nearly a quarter of Labour MPs have signed a petition urging the chancellor to hike taxes on gambling companies and use the money to lift benefit restrictions on families with more than two children.
The campaign – which has the backing of 101 Labour MPs – says a levy on gambling could raise £3bn which could lift half a million children out of poverty.
Rachel Reeves has come under pressure from her own party, including former prime minister Gordon Brown, to scrap the two-child benefit cap when she sets out her Budget on 26 November.
The UK’s Betting and Gaming Council said more tax hikes on the industry “would only harm jobs, investment, and vital funding for sports and tourism”.
