Some 4,500 jobs have been lost in the gambling sector since Labour’s tax raid Budget last year as Andy Burnham braces for a battle with Britain’s biggest bookies.

More than 540 shops have shut since November, according to industry body Betting and Gaming Council (BGC).

It comes after Betfred said last month it would close 132 shops, resulting in 600 job losses.

William Hill owner Evoke has shut 270 shops since the Budget, while last month Ladbrokes owner Entain said it would cut around 500 jobs.

Former chancellor Rachel Reeves increased taxes on online gambling, such as casino games and slots, to 40 per cent from 21 per cent and on sports betting to 25 per cent from 15 per cent. 

Ministers have argued the closures are not the Government’s fault. But gambling giants say they faced tough choices because they manage retail and online divisions through the same balance sheet.

Their betting shops are also paying higher wages, National Insurance and business rates.

Burnham has previously called for a crackdown on aspects of gambling, including slot machine shops. The sites could be hit with a £460million tax rise following a report by the Social Market Foundation think-tank.

The gambling lobby hopes to convince Chancellor John Healey and Burnham that more taxes mean job cuts, ahead of the Budget on October 28.

It is awaiting Burnham’s appointment of a gambling minister, although Lisa Nandy is in post as the minister for digital, culture, media and sport.

But operators say a tax raid will send punters towards black-market companies who do not follow the same regulations for tackling addiction.

The BGC said: ‘Doubling of online gaming duty is already hammering betting businesses.

‘The Treasury may pretend these tax rises only hit online gambling but that is not how the industry works.

‘These are the consequences of the previous Chancellor’s damaging tax rises. They are bad for jobs, bad for high streets and bad for sport – and hand a huge advantage to the unsafe, unregulated black market.’

Betfred founder Fred Done has warned offshore bookmakers who take the bets don’t pay anything to Britain.