Jockey Club Urges Government to Reconsider Racing Tax Hike

The Jockey Club has issued a stark warning to the UK government, claiming that a proposed tax increase on racing bets could lead to significant self-harm for the industry. This warning comes as the racing sector prepares for an unprecedented strike on November 1, 2023, which will see all scheduled meetings at Lingfield, Carlisle, Uttoxeter, and Kempton postponed as part of the Axe The Racing Tax campaign.

The Treasury’s proposal aims to implement a single remote gambling tax, raising the current rate for bookmakers on racing bets from 15 percent to 21 percent. This rate would align with that of online casinos and gaming operations. According to research commissioned by British racing officials, this tax hike could result in an annual loss of £66 million for the racing industry, affecting trainers, breeders, and courses, and potentially jeopardizing the sport’s long-term viability.

Jim Mullen, chief executive of the Jockey Club, which manages 15 racecourses across the UK, expressed concern over the potential consequences of the tax increase. He stated, “I think it’s inevitable that you’ll see racecourses close, and the problem with that is a lot of these racecourses are embedded in communities that have been there for generations.”

He emphasized the significance of the sport, noting its global reputation, especially during marquee events such as the Grand National, Ascot, Cheltenham Festival, and Derby. “Why would you want to undermine that? We are the best in the world at it and, for £66 million a year, that’s what’s going to happen,” Mullen added. He called on the government to reconsider its approach, stating, “Just have a think about what you’re doing – this walking into self-harm.”

Impact of the Tax Proposal on Racing

The Treasury has indicated that it is currently consulting on the tax change in advance of the Chancellor’s Autumn Budget, which has been delayed until late November. Mullen explained that the decision to cancel Wednesday’s races was not made lightly, highlighting the financial repercussions for the £4 billion industry. He estimated that rescheduling would incur a short-term financial hit in the “hundreds of thousands” of pounds, prior to any revenue generated from the betting levy.

“This is a massive, massive thing, and we’ve never done it before,” Mullen said. “Cancelling any type of sports event is a big call. But we feel as if we have to because we want people to listen to us.”

The action taken by the Jockey Club represents a rare moment of unity within the racing community. Mullen noted that for the first time, the industry has come together for a complete day without racing, underscoring the seriousness of their message to the government.

As the consultation period continues, the Jockey Club remains hopeful that the Treasury will recognize the potential harm the tax could inflict on an industry that has long been a pivotal part of the UK’s sporting landscape. The stakes are high, and the future of racing in Britain may depend on the government’s response to these concerns.