Gambling giant Flutter Entertainment has added its weight to warnings of the damage likely to be caused by dramatic rate rises on bookmakers amid news that the government could target £40 billion in spending cuts and tax hikes rather than the widely quoted figure of £22bn.

Peter Jackson, chief executive of Flutter, expressed a concern at the unintended consequences that could result from the imposition of higher taxes following reports the Treasury was considering proposals put forward by two think tanks to dramatically increase gambling duty rates in the budget on October 30.