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The government has been told by MPs that it should not “cave in to industry scaremongering” about the negative effects of taxing online betting games, and that it should tax them at a rate that reflects the harm they can cause.

The recommendation from the cross-party Treasury committee comes just weeks ahead of Rachel Reeves’s Budget, in which she will be looking to plug a substantial gap in the public finances.

In its report, released on Friday, the committee warned that online

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