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 broadcas

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