Industry ‘In Denial’: Plain Speaking From Philip Newton as TBA Introduces £60 Mandatory Foal Levy For 2026

[Wandering Eyes]

It would be fair to say that Monday night's annual general meeting of the Thoroughbred Breeders' Association (TBA) was not a laugh a minute, but, as TBA chairman Philip Newton outlined, there is not much cause for levity in British racing and breeding these days. 

Rising costs, stagnant or falling prize-money in the lower tiers, and continued declines in the British (and global) foal crop were all cited as areas of concern, while Newton, who has been instrumental in the development of Project Pace, which seeks to make a Premier League-style package out of a select number of Britain's best racing fixtures, also spoke of the potential of this venture. 

To date, Project Pace has received a Levy Board grant of £232,500 to develop a strategy that Newton hopes will deliver “transformational funding”. He promised to provide greater details of these plans after imminent consultation with key rights holders.

The TBA also released details of its new Equine Welfare Levy, which will mean a mandatory extra charge to breeders of £60 per foal registered from 2026, replacing the old voluntary levy.

“The breeding industry, and as a follow-on, the racing industry, is facing change that it hasn't seen before, and which threatens its very existence,” Newton warned in his address to around 50 TBA members in attendance at the Jockey Club Rooms. 

“I see it very much as my, and the TBA's, responsibility to ensure that the industry – that's the full racing industry – understands the treacherous waters it is steering towards, and the consequences of not changing course.”

Newton is plainly dismayed that prior warnings have gone unheeded by those in charge of racing and the fixture list.

“To deal with a problem, in the first instance, you have to acknowledge that there is a problem, and I'm disappointed to say that parts of the industry are in denial about the serious problems the breeding industry is facing,” he added.

This is not the first time that Newton has painted a stark picture regarding the drop in the foal crop, which, according to statistics released by the TBA, has dropped by 15 per cent since 2022. Early indications from covering numbers in 2025 suggest a drop of around 13 per cent, which would result in around 3,500 foals in 2026. 

Newton continued, “That's a 25 per cent loss in five years. It's even more damaging than you might think, because in the 2022 economic impact study, we charged PwC to model the foal crop out, and with the financial circumstances and economic influences that were prevalent at the time, they concluded that a number of 3,500 would be reached by 2051. We have now consolidated 25 years into five.

“And if that pace is continued, it will see catastrophic failure for the industry. With current investment in short supply, prize-money, and economic circumstances demanding, breeders in the commercial market are finding it almost impossible to make ends meet. Three out of four yearlings sold in 2024 failed to recover cost.”

Newton pointed to rising costs linked to changes in inheritance tax and National Insurance as being among those to have affected breeders. But in an earlier presentation, deputy chair Kate Sigsworth had set out a TBA-imposed extra cost to breeders for next year, when the foal levy, which was previously an optional £12.50 each to the TBA and Retraining of Racehorses (RoR) when foals are registered, will become mandatory and increase to £60 per foal. 

The new Equine Welfare Levy will again be divided between the TBA and RoR, with the TBA retaining £35 per foal for “continuation of vital work around traceability, genetic diversity, veterinary research, equine infectious disease control and prevention and in supporting breeders to achieve best practice in relation to the health and wellbeing of thoroughbreds under their management”. The remaining £25 will go to the RoR.

In recently announced contributions from across the industry, the RoR now also receives £6 per lot sold at all British sales companies on top of a mandatory levy of £3 from vendors and purchasers for every horse sold; £270 per fixture from all of Britain's 59 racecourses; and £100 per member each year from the Federation of Bloodstock Agents. This is on top of a percentage of prize-money won by owners, trainers and jockeys.

Sigsworth said, “The new welfare levy will mean the TBA is guaranteed a fixed amount to help underpin and facilitate a broad range of vital workstreams, including equine infectious disease control and prevention, biosecurity and border controls, traceability and genetic diversity; as well as providing funding for aftercare activity via RoR, as part of an industry-wide approach to support their three-year strategy and providing education initiatives and safety net provision for any horses who may at some stage require the charity's services.

“The TBA absolutely recognises and thanks all those breeders who already play a crucial role in the rehoming of their own thoroughbreds following their racing careers (for breeding or otherwise), often for life, or by supporting with their transition to the broader equestrian sector, but many thoroughbreds are still sold at public auction or privately and at some stage may find themselves requiring the expertise of RoR.”

It will indeed be interesting to see the response to what effectively increases the cost of registering a foal by up to 62 per cent, bearing in mind that the previous levy of £25 was voluntary rather than compulsory. Commercial breeders will also be contributing through the sales levy outlined above, and owner-breeders already donate their share of prize-money.

The TBA has not been immune to the exodus of senior people that has affected a number of racing's organisations, with chief executive Claire Sheppard having officially stepped down at the AGM. Newton paid handsome tribute to Sheppard's eight years in the role.

He said, “I've been unbelievably lucky in my life, in that every time I've been given a job, I've had somebody that makes me look good, and Claire has made me look good. I can't tell you the hours that she's put in, the dedication that she's given this industry.”

In her own address, Sheppard had earlier spoken of the “brutal press coverage” aimed at some of the leadership figures in racing. If it has indeed been brutal then it is certainly a reflection of the general frustration and concern felt by many of racing's participants as they witness a revolving door of CEOs while the troubles faced by the sport remain a major threat.

With the delayed arrival on Monday of Lord Allen in his new role as chairman of the British Horseracing Authority, perhaps all this is about to change. We can but hope. But, given Sheppard's comments, it was surprising to learn moments later that her successor Naomi Mellor, whose appointment was announced in June, was not present at the AGM to meet breeders owing to a “longstanding personal commitment”. 

It was an inauspicious start to Mellor's tenure, particularly on a night when the chairman had spoken in such stark terms of the potentially dire future faced by those attempting to stay afloat in the business. 

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