Charles Holland, whose family operates six seaside FECs across the South West, has warned that the proposed Machine Games Duty rise threatens jobs, investment and coastal communities. And worse, with it could set in a government-enforced rot that will erode the UK’s valued economic heritage dating back millennia – the family business sector.
Charles Holland has warned that further increases to Machine Games Duty in the upcoming Autumn Budget could force operators to cut jobs, reduce investment and close venues.
Holland, whose family operates six FECs across the South West, highlighted the mounting financial pressures facing the seaside sector in an opinion column for LBC.
“Last year alone, my small business paid nearly £1m in MGD,” he commented, adding that this came before staffing, maintenance and other operating expenses.
“If the Government decides to double the standard rate MGD tax, I would face very difficult decisions,” he continued. “That could mean reducing opening hours, putting off investment, cutting jobs or even closing venues altogether.”
His businesses currently employ 150 people, while supporting local suppliers and neighbouring high street businesses through year-round trading.
“Staying open through the winter keeps people employed and gives customers another reason to come into town, supporting neighbouring cafes and shops,” Holland explained. “If arcades are forced to close, that impact will be felt beyond our own doors.”
He added that ministers need to consider what happens if higher taxes make these businesses less viable.
“When an arcade closes, it’s not just another empty unit on the seafront. It’s one less reason for families to visit, one less employer in the community and another piece of our seaside heritage lost,” he warned.
And he closed on a note that it’s the local communities that should really matter in Treasury decisions: “As ministers prepare their Budget, I hope they think about the businesses and communities behind the numbers. Because once these places are gone, we may never get them back.
Family values…matter
Charles Holland said… “My family has spent more than 60 years building something we’re proud of. I want to be able to pass it on to the next generation, just as previous generations passed it on to me…
Under Threat: the heritage and role of the UK’s arcades
“We’ve weathered plenty of challenges, but running a seaside business has never been harder than it is today. With the Government considering another tax rise, I fear this could be the end of the road.
A trip to the seaside is a British tradition. At a time when so many family days out come with a hefty price tag, you can still walk into a seaside arcade with a few pounds in your pocket and have a great time. I want that to be as possible for the next generation as it has been in the past.
To me, [our arcades] are more than businesses; they’re part of my family’s history – as well as places where generations of other families have made memories of their own.
But as the Budget approaches, I’m worried about what the future holds for businesses like mine. Behind the bright lights of the arcades, the reality of keeping these businesses open is becoming harder and harder.
Seaside businesses depend on each other. We employ 150 people, we use local suppliers and pay business rates and other taxes. Staying open through the winter keeps people employed and gives customers another reason to come into town, supporting neighbouring cafes and shops. If arcades are forced to close, that impact will be felt beyond our own doors.
I see our industry statistics: it’s not just my operations that are hurting. Over the last ten years, we’ve seen the number of seaside arcades nearly halved.
Three generations have worked to build our businesses, welcoming families year after year and becoming part of the community.
“My family has spent more than 60 years building something we’re proud of. I want to be able to pass it on to the next generation, just as previous generations passed it on to me.”
Originally published on Coinslot on October 26, 2026. Republished with permission.