By Lizzy Buchan

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Rachel Reeves is facing fresh pressure to raise taxes on gambling giants to pay for scrapping the two-child limit. More than 100 Labour MPs have backed calls made by Gordon Brown to target tax hikes on highly profitable parts of the gambling industry – such as online casinos and slot machines. The group has written to the Chancellor, saying there is a “compelling” case for a “targeted levy on harmful online gambling products” to alleviate child poverty. The proposals, drawn up by the IPPR thinktank and first revealed by the Mirror last month, could raise up to £3.2billion, which could cover the cost of scrapping the two-child limit and the benefit cap. Alex Ballinger, signatory of the letter and member of the All-Party Parliamentary Groups on gambling reform, said: “No child should grow up in poverty while gambling companies make record profits. Gambling harms are increasing, yet gambling is VAT exempt.” It comes as the Government faces intense pressure to scrap the Tory policy, which is likely to be a battleground issue at Labour’s annual conference this weekend. First introduced in 2017, the two-child limit restricts claims for Child Tax Credit and Universal Credit to the first two children in each family. The Prime Minister commissioned a child poverty taskforce last year to look at how to drive down the numbers of children growing up in hardship. A Government source said work was ongoing and no decision had been made on the two-child limit after reports emerged that the taskforce planned to recommend scrapping the two-child limit. Education Secretary Bridget Phillipson, who sits on the taskforce, recently said the policy was “spiteful”, which has been seen as a sign it could be axed. Today, senior MP Dame Meg Hillier said it would be “unconscionable” if Labour failed to tackle child poverty. She said: “I’m convinced that the quickest and easiest way to lift 350,000 children out of poverty and 700,000 children out of deep poverty, would be to really pick up the cap. So I’m not surprised if that’s the conclusion of the child poverty taskforce.” She added: “It is unconscionable to me and many colleagues and people I know up and down the country, particularly in my constituency, to think that we’re not going to be investing in our children.” Chancellor Rachel Reeves said: “As a Labour Chancellor I’m determined to lift children out of poverty and we’ve made a commitment that in our time in office there will be fewer children in poverty at the end of this parliament than at the beginning.” She added: “The child poverty task force is doing its work at the moment. That will report shortly and of course I will respond in the Budget . Am I determined to lift children out of poverty? Absolutely. That is what Labour chancellors do and that’s what this Government will do as well.” On gambling taxes, she told ITV : “I didn’t need MPs or former chancellors to tell me to launch an inquiry into gambling taxation. I did that as Chancellor, and I’ll set out the plans on the taxation of gambling – and indeed of other areas – in my Budget on 26 November.” A DWP spokesperson said: “Every child, no matter their background, deserves the best start in life. That’s why our child poverty taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty. “We are investing £500 million in children’s development through the rollout of best start family hubs, extending free school meals and ensuring the poorest don’t go hungry in the holidays through a new £1 billion crisis support package.”