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A senior racecourse executive told the Express how fury at Rachel Reeves’ plans for a ‘tax grab’ on their sport has prompted all UK racing to shut down on Wednesday in protest. Kempton Park is one of many tracks who cancelled racing for 24 hours in anger at the Government’s proposals to fill their public finance black hole with extra tax from the £4.1 billion industry that supports 85,000 UK jobs.
The Daily Express has revealed how Treasury’s plans for a new higher racing tax could spark a catastrophic £160m income loss in the first year, £330m revenue hit over five years and risk 2,752 jobs. Currently there are separate taxes for online bookies if punters bet on real-life horseracing (15 percent) or virtual casino games like poker (21 per cent) – but the Treasury wants to lump them together into a higher, one size fits all ‘harmonisation’ rate.
On Wednesday MPs, jockeys, trainers and race track and industry executives are heading to Westminster to highlight its feared crippling effect on the UK countryside – in their #AxeTheRacingTaxCampaign.
Simon Durrant, Kempton Park’s General Manager, told us: “The whole industry is fully supportive of cancelling racing for 24 hours. It is an unprecedented step for our sport and a decision none took lightly.
“We need the Government to sit up and take notice. As the second most attended sport in the UK and a major financial contributor to the economy, horseracing will be seriously impacted if these proposals are given the go-ahead.
“What doesn’t seem to have been considered by the Treasury is the unintended consequences of raising tax on horseracing betting and the serious financial impact it would have on everyone who relies on racing for their livelihoods.
“Harmonising betting tax in this way would not only hit bookmakers, it would disincentivise them from maintaining their current investment in the sport and result in a reduction in betting activity.
“Horseracing and betting are inextricably linked in a way that other sports are not.”
Aside from paying taxes, 10 percent of all bookmakers’ gross profits from UK horseracing bets are collected by the Horserace Betting Levy Board (HBLB) – to funnel back into the industry.
The levy was introduced in the 1960s amid concerns the legalisation of betting shops could negatively impact racecourse attendance.
Simon added: “So this scenario would see less money flowing through from the Levy, plus a reduction in media rights and sponsorship which helps fund everything from prize money and jobs to veterinary and equine welfare research.
“In turn that impacts training yards, studs and a huge number of other businesses which rely upon racing in towns and villages up and down the country.
“In short, it puts thousands of jobs at risk and would deliver an annual £66million blow to our sport.
“We hope that by cancelling racing and joining together to oppose these proposals we can highlight just how harmful and ill-thought-out they are and prompt the Government to reconsider.”
The ‘Sport of Kings’ has united to urge the Government not to treat the real-life sport of racing – which supports breeding, training, yards and all their supporting countryside businesses – with online casino gaming.
Dan Carden MP, Chair, All-Party Parliamentary Group for Racing & Bloodstock said: “I’ve seen first-hand how important racing is to Britain economically, socially and culturally.
“This strength of feeling is clearly shared by those who work in the sport, demonstrated by the decision to cancel racing today. As the MP for Aintree Racecourse, I am keenly aware of the potential impact of betting duty harmonisation.
“Aintree hosts world class racing, supports jobs, engenders local pride and plays a significant role in the community.”
Lord Charles Allen, chair of the British Horseracing Authority (BHA), said the 24 hour racing cancellation shows the “great strength of feeling and unity within the sport” proving “racing will not sit quietly while our future is placed in jeopardy.”
Brant Dunshea, acting BHA chief executive, said: “Our sport already faces a number of financial challenges and a tax rise of this nature could have catastrophic consequences. More than 300 years of sporting history is at stake.”
Jim Mullen, group chief executive of The Jockey Club who own a number of racecourses including Kempton, said: “We hope by taking the unprecedented step of cancelling all racing for 24 hours we are able to highlight just how harmful and ill-thought-out these proposals are.”
Trainer Andrew Balding said: “We employ 90 full-time members of staff at Kingsclere and it is no exaggeration to say their jobs, and those at other yards and studs, would be threatened by the harmonisation being consulted on.
Jockey Kieran Shoemark said he is “really worried about the future for racing” if the Treasury’s proposals go through.
While jockey Tom Marquand remarked: “We depend on owners and trainers keeping horses in work and without that investment, opportunities will disappear and careers will end.”
An HM Treasury spokesperson told us: “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy. It is not about increasing or decreasing rates.”
* To help stop the racing tax and back British horseracing, the BHA is urging supporters to sign the #AxeTheRacingTax petition
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