The shadow sports minister has raised questions over Labour’s proposal to raise betting taxes, highlighting the potential conflict of interest created by anti-gambling campaigner Derek Webb’s £500,000 donation to the party last year.

Speaking to The Sun, MP Louie French called for greater transparency around plans to merge and increase existing betting duties, which is currently estimated to cost the gambling industry up to £3bn.

“The relationship between another key Labour crony and those who seek to ruin the fun of millions raises questions about who’s in the saddle in Number  Ten,” said shadow sports minister Louie French.

“This nanny state tax will not only bash the bookies, but it will destroy thousands of jobs, hurt British sport and fuel the black market.”

Responding to the claims, a spokesperson for Webb said the entrepreneur “supports initiatives around reducing gambling harm.” 

“He is in good company asking for increased online gambling tax, being alongside former Prime Minister Gordon Brown, businessman John Caudwell and a petition by 38 Degrees, whose polling shows this would be popular amongst voters of all parties.”

Treasury minister Dan Tomlinson added “the Chancellor is clear that speculation on tax rises is inaccurate and irresponsible,” while a spokesperson for the government said “donations do not influence party or government policy.”