Culture Secretary Lisa Nandy has said she wants the gambling industry to “thrive” amid rumours of a multi-billion pound “tax raid” on bookies.

Earlier this week, gambling firms saw their shares tumble amid fears the Government is planning to double some of the taxes paid by online casinos and bookies in the forthcoming Budget.

Ladbrokes and Coral owner Entain led declines on the FTSE 100 Index on Monday morning as its shares slumped 9% after a report late last week that Chancellor Rachel Reeves is mooting the tax raid to raise up to £3 billion.

During Culture, Media and Sport questions in the Commons, Labour MP for Dartford Jim Dickson asked “if steps are being taken to progress towards an independent statutory levy on the industry to fund gambling treatment and independent information”.

Ms Nandy said the Government are “committed to reviewing all of the available evidence” in order to strike the right balance between ensuring the gambling industry can “thrive” and supporting those suffering from problem gambling.

Shadow culture minister Dr Luke Evans said rumours of increased taxes on the industry “threatened” business and jobs in gambling.

He said: “No one wants to see people caught up in problem gambling, but equally, no one wants to see businesses struggle and job losses, even by the Secretary of State’s own words, we want to see this industry thrive.

“Yet this week, this was threatened after it was rumoured the Treasury are planning a £3 billion tax raid, now that’s already seen £3 billion wiped off the value of bookies.

“So could the Secretary of State clarify, does she support the industry, or does she support the Treasury?

“Did she raise her concerns about the rumour, and when will we see the gambling reforms be brought forward with the timetable this House can scrutinise?”

Ms Nandy replied: “(Dr Evans) should know, as we do, that you can’t believe everything that you read in the papers.

“I think he will have heard from my previous answer that we are determined to strike the right balance.

“We’re aware of the value of this industry and the importance of it not just to the UK economy, but the joy that it brings to many, many people, and the employment prospects that it offers to people in every nation and region of the United Kingdom.

“We are also very aware of the problems that can be caused by problem gambling, and as the previous government did, we are determined to talk to the widest range of partners to ensure that we strike the right balance, to protect people from the problems that can ensue, but also to support the growing industry.”

Shadow culture secretary Julia Lopez said Ms Nandy “believes it’s not good policy that counts, it’s good vibes” as she also attempted to pin the Culture Secretary on her department’s spending commitments in the upcoming autumn Budget.

She said: “The problem is every DCMS sector tells us they want more than vibes. They need decisions, and they want a Budget that’s going to deliver.

“So can the Secretary of State tell us, is she among the panicked ministers who’s written to the Chancellor about her Budget and spending asks, and which has she listed as her priority?”

Ms Nandy said she wasn’t sure “what the vibes issue is”.

She continued: “I don’t need to write to the Chancellor, because unlike under the previous government, we have a very close relationship, and we tend to pick up the phone when there are discussions that need to be had.

“I was very, very pleased to welcome, alongside the Chancellor, the Business Secretary and the Prime Minister, this week £63 billion pounds worth of investment into the UK and to put creative industries at the heart of our economic strategy.”

Earlier in the session, Conservative MP Martin Vickers hit out at the previous government for the amount of funding cuts made to youth services.

Ms Nandy said it is “a source of national shame” that under the last government youth funding decreased by 73%.

Mr Vickers said: “The Secretary of State rightly, in my opinion, criticises the last government for reducing resources made available to the sector. Can she reassure me that this Government will actually increase those resources?”

Ms Nandy replied: “We are absolutely determined to grip this issue, and one of the things we discovered when we opened the book as a new Government is that there are several sources of funding within my department and across Government but there is no strategy for youth in Government at all.

“We are determined to set that right. We will develop and co-produce a strategy for a generation of young people.”