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Hedge fund titan Bill Ackman predicted the Federal Reserve will begin slashing interest rates as early as the first quarter to avert “a real risk of a hard landing” for the US economy.

Fed officials have unanimously decided to keep the benchmark federal funds rate at its current 22-year high, between 5.25% and 5.5%, for the past two policy meetings with little indication that they’ll slash interest rates following the next two-day meeting on Dec. 12 and Dec. 13.

Ackman told Bloomberg that if the Fed keeps rates around the 5.5% range while inflation trends below 3%, thats a very high real rate of interest.

Inflation, meanwhile, has been decelerating. October’s Consumer Price Index which tracks changes in the costs of everyday goods and services — rose 3.2%, a slowdown from September’s 3.7% advance, but a figure Fed Chair Jerome Powell has repeatedly reiterated is still above the Fed’s 2% goal.

Whats happening is the real rate of interest, which is what impacts the economy, keeps increasing as inflation declines, Ackman told Bloomberg.

I think theres a real risk of a hard landing if the Fed doesnt start cutting rates pretty soon, Ackman added, noting that hes seen evidence of a weakening economy.

Traders however, aren’t fully pricing in a rate cut until the end of 2024’s second quarter, in June, Bloomberg reported, citing swaps market data.

The chance of a cut happening in May is some 80%, the data showed.

Though Ackman didn’t elaborate on the “evidence” he sees that the US economy could be headed towards its first recession since 2007, last month’s surge in long-term Treasury yields stoked fears of a hard landing.

At the time, bond yields briefly surpassed 5%, making it more expensive for consumers and companies to borrow money, thereby undercutting the economy and increasing the risk of a recession.

Ackman, whose made his name building up Pershing Square Capital Management’s $17 billion portfolio, insisted to Bloomberg that he’s not convinced the US economy is headed for a “soft landing,” in which the Fed would be able to continue its tightening regime while staving off a recession.

He acted on this belief back in August, when he shorted 30-year Treasury bonds — a move that netted Ackman’s fund a profit of about $200 million.

Representatives for Ackman at Pershing Square did not immediately respond to The Post’s request for comment.

Economists have also largely predicted that an interest rate cut is forthcoming, especially given a weaker-than-expected jobs report in October, when the Bureau of Labor Statistics reported that the US economy added 150,000 jobs.

The unemployment rate is now 3.9%, the agency said, above the Fed’s 3.8% year-end forecast.

Inflation has also trended weaker than central bankers’ estimates as Americans see some reprieve from the Fed’s aggressive tightening cycle, which began in March 2022.

Rates have since increased at a pace not seen in 40 years, and the Fed hasn’t cut interest rates in over a year despite falling inflation.

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2025 Big Ten football preview: Power rankings, top players, key games

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2025 Big Ten football preview: Power rankings, top players, key games

Will Ohio State claim the Big Ten title in 2025, or will Penn State finally break through in 2025?

The college football season is less than a month away, and it looks like these two perennial Big Ten powers will have the best shot to not just win the conference, but the College Football Playoff, too. But it won’t be without stiff competition from Oregon, which won the league last season.

In addition to the Big Ten’s playoff race, eyes will be on UCLA and Nico Iamaleava following his exit from Tennessee.

We get you caught up on the Big Ten by breaking down the conference’s CFP outlook, power rankings, must-see games, top freshmen, key transfers and numbers to know.

Jump to:
CFP outlook | Must-see games
Freshmen | Transfers
Numbers to know
Power rankings

CFP outlook

Should be in: Penn State, Ohio State, Oregon. Defending national champion Ohio State always will be penciled into the CFP field, even after losing 14 NFL draft picks, tied for the most in team history. The Buckeyes have wide receiver Jeremiah Smith, considered the nation’s best overall player, as well as safety Caleb Downs, arguably the No. 1 defender. But it’s Penn State, not Ohio State, that enters the fall as possibly the Big Ten’s strongest national contender. The Nittany Lions replace less than the other three teams that reached last year’s CFP semifinals, as they return quarterback Drew Allar, running backs Nicholas Singleton and Kaytron Allen, and several standout defenders. Oregon is amazingly being overlooked a bit after winning the Big Ten in its debut season and becoming the only FBS team to finish the regular season at 13-0. The Ducks lost 10 NFL draft picks but will return a talented defensive front seven and add several top transfers and recruits.

In the running: Illinois, Michigan, Indiana. Illinois returns the core players from its first 10-win team since 2001, and it could become this year’s version of Indiana, especially with more explosiveness on offense and stout line play. If the Illini can navigate September road tests against Duke and, yes, Indiana, look out for Bret Bielema’s squad. Michigan hopes to rejoin the CFP mix after its strong finish to last season, leaning on a talented defensive front and possibly incoming freshman quarterback Bryce Underwood, the nation’s No. 1 recruit. Indiana largely will be counted out, but not here, as the team retained several All-Big Ten players from the historic CFP team, and added quarterback Fernando Mendoza and several notable offensive linemen from the portal. Iowa occasionally found itself in the four-team CFP mix and could take a leap if transfer quarterback Mark Gronowski elevates the offense.

Long shots: Nebraska, USC, Minnesota, Washington. Nebraska has had a tough time merely making bowl appearances in the Big Ten, but could be primed for a jump in wins, as quarterback Dylan Raiola returns to lead the squad. The Huskers are also helped by a favorable schedule that doesn’t include Ohio State or Oregon, and has no true road game until Oct. 11. USC is still seeking its first CFP appearance under Lincoln Riley and could enter the mix if it plays better away from home, where it dropped four games by seven points or fewer. Minnesota coach P.J. Fleck is also seeking better results in one-score games and told ESPN that the CFP “isn’t a pipe dream.” Washington is only two years removed from a national title game appearance and brings back a team with upside, particularly dynamic young quarterback Demond Williams Jr. — Adam Rittenberg and Jake Trotter


Must-see games

From Bill Connelly’s Big Ten conference preview

Here are the 10 games — eight in conference play, plus two huge nonconference games — that feature (A) the highest combined SP+ ratings for both teams and (B) a projected scoring margin under 10 points. That second part is key, as neither Penn State (two) nor Ohio State (three) have many projected close games on the docket.

Texas at Ohio State (Aug. 30) and Michigan at Oklahoma (Sept. 6). The biggest games of Weeks 1 and 2 are Big Ten vs. SEC affairs, though they take on different flavors. Texas-Ohio State is a rematch of last year’s delightful CFP semifinal, in which Jack Sawyer’s late scoop-and-score ended a Longhorns comeback attempt. Both the Longhorns and Buckeyes will almost certainly start out in the AP top 5. Meanwhile, Michigan and Oklahoma are looking for ways back into the top 10, and both will bring remodeled offenses to the table.

Illinois at Indiana (Sept. 20). If things play out as forecasted and we have two different races going on in the Big Ten — the big names vying for the conference title and the pool of 14 other teams fighting among each other for another playoff spot — then this is the biggest Illinois-Indiana game of all time. The loser will have to be just about perfect to get to 10-2 and a potential bid.

Oregon at Penn State (Sept. 27). The Week 5 slate is overloaded with big games, but this will almost certainly be the biggest. The Ducks and Nittany Lions will almost certainly be a combined 7-0 at this point, as neither team will have played a top-50 team.

USC at Illinois (Sept. 27) and Indiana at Iowa (Sept. 27). Like I said, there’s just way too much going on in Week 5. Goodness.

Michigan at USC (Oct. 11). By this point, Michigan will have already played at Oklahoma and Nebraska and could be 5-0 and in the top 10, or 3-2 and flailing. USC will have just visited Illinois and could be 5-0 or flailing as well. This game will be huge, for any of about 17 different reasons.

Penn State at Ohio State (Nov. 1). In terms of combined SP+ ratings, this is the single biggest game of the 2025 regular season.

Indiana at Penn State (Nov. 8). Whether PSU is coming off of a win or a loss in Columbus, the Nittany Lions will desperately need to move on and avoid a hangover.

Ohio State at Michigan (Nov. 29). Proof that even in a 12-team CFP era, a rivalry loss can send you into a spectacular, existential tailspin. (And proof that you might be able to steer out of it a little better now.)


Three freshmen to watch

Malik Washington, QB, Maryland

Washington already arrived on campus facing immense expectations after the four-star Maryland native opted to stay home and attend the school he grew up idolizing. His spring game showing — he went 12-of-18 for 170 yards and two touchdowns — did little to dispel any optimism he could become the face of a program resurrection in College Park. At 6-foot-5, 231 pounds, Washington is a true dual-threat with arm talent and mobility. His accuracy and ability to change arm angles should mesh well in an RPO scheme. Carving out a path to contention in the Big Ten won’t be easy, and he’ll need to beat out UCLA transfer Justyn Martin for the starting gig, but Washington has game-changing tools.

Bryce Underwood, QB, Michigan

No freshman in college football faces more scrutiny than Underwood, who arrived in Ann Arbor as the highest-ranked player in the class and signed a multi-million dollar NIL deal after a lengthy pursuit by his hometown Wolverines. Underwood’s spring was more solid than exceptional, and he went 12-of-26 for 187 yards in the spring game, which included an 88-yard touchdown, but also a pair of sacks and several overthrows. Michigan coach Sherrone Moore hasn’t named a starter and has been consistent that Underwood is battling with Jadyn Davis, Jake Garcia, and Mikey Keene for the role, but Michigan’s offense has its highest ceiling with Underwood at the helm. At 6-foot-4, 210 pounds, Underwood combines raw speed, clean footwork in the pocket and natural arm strength. The ball jumps out of his hand and he’s adept at keeping plays alive on the run to move the chains. It might require some patience — which isn’t easy in Ann Arbor — but Underwood has the ceiling of a dominant, Heisman Trophy-contending signal caller.

Dakorien Moore, WR, Oregon

Moore arrived in Eugene as the highest-graded high school receiver ESPN has evaluated since 2020, then dazzled Oregon teammates and coaches alike during the Ducks’ spring practices. Moore won the 2025 Under Armour All-America Game MVP and totaled more than 4,000 receiving yards at famed Duncanville High School in Texas. He’s also a decorated track star, and his blazing speed and savvy route-running ability should find a home in Oregon’s offense on Day 1. Moore’s offseason work has only helped solidify the high expectations. He could quickly become a reliable option for new starting QB Dante Moore, and his role in the offense only becomes more important with Evan Stewart set to miss at least a significant portion of the season with a knee injury. — Billy Tucker


Three top transfers

These selections are based on Max Olson’s ranking of the top 100 transfers from the 2024-25 transfer cycle.

Transferring from: Cal | Top 100 rank: 4

HT: 6-5 | WT: 225 | Class: Redshirt sophomore

Background: Mendoza was an incredible find for Cal, an under-the-radar three-star out of Miami who was committed to Yale until the Bears extended a late offer. He developed into one of the best young QBs in the country after taking over as Cal’s starter for their final eight games in 2023. As a sophomore, he was the ACC’s third-leading passer with 3,004 passing yards and raised his completion percentage to 69% (second in the ACC) while scoring 18 total touchdowns with just six interceptions over 11 games. He led all FBS quarterbacks with 41 sacks last season but overcame inconsistent protection to have a really productive year with strong performances against Miami and Auburn and a 98-yard game-winning drive to beat rival Stanford. Mendoza is viewed as one of the most promising QBs in the country by several personnel departments. — Olson

Scout’s take: Mendoza is one of the most undervalued players at the position in college football. He’s 6-5, a great athlete and is tough as nails. He was sacked a lot and kept getting back up. Mendoza can make all of the throws and is a sneaky, crafty athlete. — Luginbill

What he brings to Indiana: Indiana coach Curt Cignetti values production over potential when it comes to recruiting the transfer portal. He’s getting plenty of both with Mendoza as his successor to Kurtis Rourke. Mendoza is looking to take his game to another level in the Big Ten and help make the Hoosiers a contender again in Year 2 under Cignetti. — Olson


Transferring from: Tennessee | Top 100 rank: 5

HT: 6-6 | WT: 220 | Class: Redshirt freshman

Background: Well, this was a stunner. While there were rumors of discontent in late December at the winter portal deadline, it was still shocking that Iamaleava left a College Football Playoff team and hit the open market during the spring in search of a better deal than the one he had with the Vols. Tennessee invested a ton of money in Iamaleava and even successfully fought off an attempted NCAA investigation into the seven-figure agreement he struck with the Vols as a five-star high school recruit. He had an awful lot of hype to live up to as a redshirt freshman starter in 2024 and put together a solid year, throwing for 2,616 yards, completing 64% of his passes with 22 total touchdowns and nine turnovers while leading the Vols to 10 wins. Iamaleava closed out the season with a rough CFP performance, completing 14 of 31 passes for 104 yards in a 42-17 first-round loss to eventual national champ Ohio State, and still has plenty of room to grow. But it is exceptionally rare that a QB of his caliber becomes available in the spring. Iamaleava is looking to keep progressing and play up to his first-round potential. — Olson

Scout’s take: There is no debating that Iamaleava is one of the most physically talented quarterbacks in college football. He was highly coveted out of high school because of his stature, arm strength and athletic ability. During his one season as a starter, he showed flashes of brilliance but also mediocrity. He threw 19 touchdowns, but four of the nine touchdowns in SEC play came against Vanderbilt and seven came against Chattanooga and UTEP. Consistency is where he has to improve. He has the arm strength and overall talent to be a terrific vertical deep ball passer, but he has been wildly inconsistent in terms of accuracy in that regard. There are still tools here, but he will likely be playing on a team that is less talented than the one he just left. Meaning: He’s going to have to be better than he has ever been. — Luginbill

What he brings to UCLA: This ordeal might have played out perfectly for the Bruins. They’re getting a potential top-10 quarterback on a reduced contract who will generate a lot of attention for this program entering coach DeShaun Foster’s second year. Iamaleava’s arrival will cost them App State transfer QB Joey Aguilar, who reentered the portal after going through spring practice with the Bruins and landed at Tennessee. The challenge going forward for Iamaleava is learning OC Tino Sunseri’s system and winning over his new teammates this summer, but he’ll certainly be motivated after his split with the Vols. — Olson


Transferring from: Nevada | Top 100 rank: 7

HT: 6-8 | WT: 309 | Class: Redshirt junior

Background: The massive pass protector was a three-year starter for the Wolf Pack primarily at left tackle and brings invaluable experience with more than 2,300 career snaps. He did not surrender a sack during his junior season and picked up honorable mention All-Mountain West recognition. World is viewed as a potential first-round draft pick by NFL scouts entering his final season of eligibility and is making the move up to the Power 4 to prove he merits that praise. — Olson

Scout’s take: World is a huge presence with very good pass pro skills at left tackle. He has added 42 pounds since high school and retained his initial quickness and flexibility. World does a terrific job riding defenders past the pocket with his length and mobility. He plays balanced with good feet and shows his basketball background mirroring defenders in his set. He’s not as effective versus the run. World’s pad level can get high, but he’s still very productive at washing defenders down to open run lanes. — Tucker

What he brings to Oregon: Offensive tackle was one of the critical portal needs for the Ducks. Ajani Cornelius graduating and Josh Conerly Jr. potentially going pro made adding starter-caliber tackles a priority for Oregon, and it was able to hold off Texas A&M and Nebraska in this battle. A one-year addition makes sense to help give the Ducks’ young big men more time to develop. — Olson


Numbers to know

4: The number of seasons it has been since defending national champion Ohio State won the Big Ten title, the Buckeyes’ longest drought since a six-year stretch from 1987 to 1992.

8: The number of Big Ten quarterbacks who were in the top 25 of the ESPN300 recruit rankings at some point in their high school careers, the most of any conference. Those QBs are Michigan’s Bryce Underwood (No. 1 in 2025), Oregon’s Dante Moore (No. 2 in 2023), Ohio State’s Julian Sayin (No. 9 in 2024), Ohio State’s Tavien St. Clair (No. 10 in 2025), Nebraska’s Dylan Raiola (No. 11 in 2024), USC’s Sam Huard (No. 16 in 2021), UCLA’s Nico Iamaleava (No. 23 in 2023) and Michigan’s Jake Garcia (No. 24 in 2021).

+200: Ohio State’s odds of winning the Big Ten championship, according to ESPN BET, which are the longest odds for the Big Ten favorite in at least 15 years. Penn State is the second choice at +225. — ESPN Research


Power rankings

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Should Penn State be the No. 1-ranked team in the country?

Heather Dinich joins “Get Up” to share why she believes Penn State should be the top-ranked team going into the new college football season.

1. Penn State Nittany Lions

If not this year, then when for the Nittany Lions? As other Big Ten powers sift through QB questions, Penn State features three-year starter Drew Allar, who has the makeup to be a first-round pick next spring. Throw in a dominant running game spearheaded by Nicholas Singleton and Kaytron Allen and a talented defense now led by veteran coordinator Jim Knowles, the Nittany Lions have the pieces to win the Big Ten — and even the national title.

2. Ohio State Buckeyes

The defending national champions lost a record-tying 14 players to the NFL and must fill significant holes at quarterback and along both the offensive and defensive lines. But Ohio State also has arguably the nation’s best two players in wide receiver Jeremiah Smith and safety Caleb Downs, other standouts such as wide receiver Carnell Tate and linebacker Sonny Styles, and notable transfers such as tight end Max Klare (Purdue). Never count out the Buckeyes.

3. Oregon Ducks

Dillion Gabriel, one of the most prolific QBs in recent college football history, is gone, leaving tantalizing former five-star recruit Dante Moore in charge of the Ducks’ offense. A season-ending knee injury to star wide receiver Evan Stewart stings. But Oregon still has enough on either side of the ball to defend its Big Ten title.

4. Illinois Fighting Illini

After winning 10 games for the first time since the Big Ten championship season of 2001, Illinois has its sights on the team’s first CFP appearance. Quarterback Luke Altmyer and outside linebacker Gabe Jacas are part of an impressive returning group that must navigate tricky September trips to Duke and Indiana before a home showdown with Ohio State on Oct. 11.

5. Michigan Wolverines

All eyes will be on five-star freshman quarterback Bryce Underwood, who has already been turning heads in Ann Arbor with his work ethic and dual-threat abilities. The Wolverines have the running game and figure to be stout defensively once again. If Underwood can supercharge the passing attack, the Wolverines could be back in contention for a playoff spot.

6. Indiana Hoosiers

How will Coach Cig (Curt Cignetti) follow a historic debut that featured a team-record 11 wins and a once unthinkable CFP appearance? Indiana retained All-Big Ten players on both sides of the ball, and added quarterback Fernando Mendoza and several notable offensive linemen in the portal. The key for IU will be better line-of-scrimmage play in its biggest games, as the schedule doesn’t look nearly as favorable.

7. Iowa Hawkeyes

The Hawkeyes are banking that transfer QB Mark Gronowski, who won an FCS national title, can jumpstart a perennially moribund Iowa offense. Iowa’s offensive line, led by standout center Logan Jones and tackle Gennings Dunker, should be elite. If the defensive-minded Hawkeyes can finally find a way to put up points, they could be dangerous.

8. Nebraska Cornhuskers

After reaching a bowl game for the first time since 2016, Nebraska is targeting much bigger goals under third-year coach Matt Rhule. The Huskers have a favorable schedule with no true road games until Oct. 11 and no Ohio State or Oregon. Quarterback Dylan Raiola has had a full offseason to develop under playcaller Dana Holgorsen.

9. USC Trojans

The Trojans lost five games by one score last season, tied for the most in the FBS. Playing from ahead will be critical for the Trojans, who trailed in 11 of their 13 games in 2024. The defense under first-year coordinator D’Anton Lynn took a step forward last season, but the Trojans need more improvement — they still allowed 5.83 yards per play (15th in the Big Ten).

10. Minnesota Golden Gophers

Could Minnesota be a wild-card CFP contender? “This isn’t a pipe dream,” coach P.J. Fleck told ESPN, pointing to a record in one-score games that, if improved, could elevate the team’s outlook. Minnesota has a solid defense, a potential two-way star in Koi Perich and will lean on first-year starting quarterback Drake Lindsey for a spark.

11. Washington Huskies

The Huskies are excited about the potential of sophomore QB Demond Williams Jr., who passed for 374 yards and totaled five touchdowns in Washington’s bowl loss to Louisville. If Williams builds off that performance, the Huskies could surprise offensively, with 1,000-yard rusher Jonah Coleman flanking him in the backfield.

12. Michigan State Spartans

After a tough first year and a relatively quiet offseason, Michigan State could creep up on teams during coach Jonathan Smith’s second year. The Spartans made some key portal additions at offensive line and wide receiver to help second-year starting quarterback Aidan Chiles. Areas to improve include takeaways and better play on the road, where MSU was 1-4 in 2024.

13. Rutgers Scarlet Knights

Athan Kaliakmanis is back after becoming the first Rutgers QB since 2015 to pass for more than 2,000 yards in a season. Defensively, the pass rush could be a strength with the arrivals of transfers Eric O’Neill (James Madison) and Bradley Weaver (Ohio), who were both all-conference performers. Rutgers ranked just 84th nationally with only 22 total sacks last season.

14. UCLA Bruins

The Bruins have gone all-in on quarterback Nico Iamaleava, the Tennessee transfer whose return home could signal a shift in how UCLA will operate under coach DeShaun Foster. If Iamaleava meets expectations and a defense with many new players and coaches shines, UCLA could rise in these rankings after a season where it had wins against Iowa and Nebraska.

15. Wisconsin Badgers

Injuries robbed any chance Wisconsin had of fielding a viable offense in 2024, as the Badgers ranked 102nd nationally in passing (197 yards per game) on the way to losing their final five games. The onus is now on transfer quarterback Billy Edwards Jr. (Maryland) and new coordinator Jeff Grimes to turn that around.

16. Northwestern Wildcats

After bottoming out on offense in 2024, Northwestern had its most successful winter transfer portal haul, which included quarterback Preston Stone (SMU), wide receiver Griffin Wilde (South Dakota State) and several linemen. The Wildcats face a huge opener at Tulane and several tricky Big Ten road contests, but bowl eligibility should be within sight.

17. Maryland Terrapins

Coach Mike Locksley recently admitted he lost the locker room in 2024 over which players to pay, as the Terrapins stumbled to a 1-8 Big Ten record. Maryland doesn’t have much coming back offensively, either, though keeping four-star QB Malik Washington in state has given the Terrapins an intriguing player to rebuild around. The true freshman is battling UCLA transfer Justyn Martin and redshirt freshman Khristian Martin for the starting QB job.

18. Purdue Boilermakers

Barry Odom is back in the Power 4 following an impressive run at UNLV. He takes over a Purdue team with almost an entirely new roster and a schedule that includes Notre Dame and Ohio State. Moderate improvement is the goal for Odom, whose track record on defense and with personnel suggests better days are ahead. — Rittenberg, Trotter

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Data sharing is the next crypto compliance frontier

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Data sharing is the next crypto compliance frontier

Data sharing is the next crypto compliance frontier

With crypto scams hitting $9.9 billion in 2024 and 90% of UK crypto apps failing AML checks, the industry needs data sharing to combat fraud.

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Chancellor doesn’t rule out raising gambling taxes after report said it could lift 500,000 children out of poverty

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Chancellor doesn't rule out raising gambling taxes after report said it could lift 500,000 children out of poverty

The chancellor has declined to rule out raising taxes on gambling after a thinktank said the move could raise £3.2bn for the public coffers and cover the cost of lifting 500,000 children out of poverty.

According to the Institute for Public Policy Research (IPPR), hiking taxes on online casinos and slot machines could raise enough revenue to fund scrapping the two-child benefit cap, with the organisation arguing that there is “no other measure which provides comparable headline child poverty reduction per pound spent”.

The proposals have been backed by former prime minister Gordon Brown, but the Betting and Gaming Council says they are “economically reckless” and could drive punters towards the black market.

The chancellor has not ruled out taking forward the proposals, telling broadcasters that a review into gambling taxes is under way, and policies will be set out at the budget in the autumn.

Money blog: Interest rate cut to lowest level in more than two years

The IPPR says in its report that the chancellor should consider increasing taxes on online casinos from 21% to 50% and raising those on slots and gaming machines from 20% to 50%, as well as raising general betting duty on non-racing bets from 15% to 25% which it said would bring other sports in line with the rates paid by horse racing.

These measures could bring in £3.2bn for the Treasury, which would cover the cost of lifting the two-child benefit cap.

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Former prime minister Gordon Brown is backing the proposals. Pic: PA
Image:
Former prime minister Gordon Brown is backing the proposals. Pic: PA

The cap was introduced by the Conservative government in April 2017, and it restricts universal credit and child tax credits to the first two children in a family, where the third or subsequent children are born after this date.

According to the thinktank’s analysis of data from the Department for Work and Pensions, 115,000 families are affected, with an average financial impact of £60 per week.

Overall, the policy is keeping over 450,000 in poverty currently, which is set to rise to 550,000 by the end of the decade, it adds.

The IPPR says raising these taxes is unlikely to reduce overall revenue for the Exchequer because firms are likely to “seek to protect their bottom lines by worsening odds”, which means a “strong possibility of higher government revenue” than their forecasts expect.

‘An investment in our children’s future’

Henry Parkes, principal economist and head of quantitative research at IPPR, said in a statement: “The gambling industry is highly profitable, yet is exempt from paying VAT and often pays no corporation tax, with many online firms based offshore. It is also inescapable that gambling causes serious harm, especially in its most high-stakes forms.

“Set against a context of stark and rising levels of child poverty, it only feels fair to ask this industry to contribute a little more.”

Progressive campaign group 38 Degrees has started a petition calling on the government to implement the proposals, and former prime minister Gordon Brown said in a statement: “Gambling will not build a brighter future for our children. But taxing it properly might just get them properly nourished. Decent clothes. A warm bed. And the full stomachs that let them fill their brains in school.

“Taxing the betting industry to support our children won’t be a gamble. It will be an investment in their future. One where everyone wins.”

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How I got caught up in AI-powered illegal gambling scam

Proposals ‘would do more harm than good’

The government has long been facing calls from its own backbenches to scrap the two-child benefit cap, and has not ruled it out doing so as part of a broader package of measures to tackle child poverty, due to be published in the autumn.

Speaking to broadcasters this afternoon, Chancellor Rachel Reeves said she speaks to the former premier “regularly”, and, like him, is “deeply concerned around the levels of child poverty in Britain”.

She continued: “We’re a Labour government. Of course we care about child poverty. That’s why one of the first things we did as a government was to set up a child poverty taskforce that will be reporting in the autumn and respond to it then.

“And on gambling taxes, we’ve already launched a review into gambling taxes. We’re taking evidence on that at the moment and, again, we’ll set out our policies in the normal way, in our budget later this year.”

But the Betting and Gaming Council says raising taxes on its members is not a sound way of funding measures to reduce poverty, with a spokesperson saying the proposals are “economically reckless, factually misleading, and risk driving huge numbers to the growing, unsafe, unregulated gambling black market, which doesn’t protect consumers and contributes zero tax”.

They added: “Further tax rises, fresh off the back of government reforms which cost the sector over a billion in lost revenue, would do more harm than good – for punters, jobs, growth and public finances.”

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