Horse Racing Industry Strikes Against Proposed Betting Tax Increase

The horse racing industry in Britain is taking a bold stand against the Government’s plans to increase betting taxes, which are set to significantly impact funding for the sport. Starting September 10, 2023, four racing events across the country will be cancelled as a form of protest against the proposed tax hike from 15% to 21%. The impacted venues include Carlisle, Uttoxeter in Staffordshire, and Kempton and Lingfield Park in Surrey, with the cancellations expected to result in a loss of up to £700,000 in revenue.

The British Horseracing Authority is spearheading the opposition to these tax increases, which are part of an effort to address a funding shortfall attributed to the fiscal policies of Rachel Reeves, the current Shadow Chancellor. Ms. Reeves is reportedly seeking to fill a financial gap of £50 billion following significant policy reversals on winter fuel and welfare cuts, alongside disappointing economic growth figures.

Horse racing heavily relies on the horse racing betting levy, which last year contributed £108 million to the industry. Jim Mullen, Chief Executive of The Jockey Club, expressed concerns that the proposed tax increase will inflict “irreparable damage” on a sport that is a source of national pride. He warned that the tax rise could lead to increased costs for bookmakers, resulting in reduced bonuses and advertising budgets, potentially causing a total revenue loss of £330 million over the next five years.

The repercussions of the tax hike could be severe, with estimates suggesting that nearly 3,000 jobs could be at risk in the first year alone. The horse racing industry employs around 85,000 people and contributes approximately £4.1 billion to the UK economy.

Former Prime Minister Gordon Brown has been a proponent of the tax increase, suggesting that the additional funds could be used to eliminate the two-child benefits cap. In response to the government’s plans, the horse racing community, including owners, trainers, and jockeys, will gather in Westminster on September 10 instead of participating in races, demonstrating their unity in opposition.

Mullen noted, “Our sport has come together today, and by cancelling racing fixtures, we hope the government will take a moment to reflect on the harm this tax will cause to a sport in which our country leads in so many ways.” This collective action highlights the industry’s determination to protect its financial viability and safeguard its future. As the situation develops, the horse racing community remains vigilant, advocating for a reconsideration of the proposed tax policies.