British Racing Falls Dark as the Sport Unites in Protest at Tax Hikes

[Wandering Eyes]

There will be no horseracing across the UK on Wednesday as part of an industry-wide attempt to persuade the British government of the potentially ruinous consequences of a proposed rise in betting tax. A hike from 15 per cent to 21 per cent has been suggested to bring betting on racing and other sports into line with the tax rate for online gaming and slots, but the British Horseracing Authority (BHA), along with the sport's other representative bodies, has warned of the devastating impact on racing's finances if this is imposed in the Autumn Budget, which is set for November 26.

“British racing has taken the unprecedented step of stopping racing for a day because the threat posed by this proposed racing tax hike is nothing short of an existential threat for our sport,” said the BHA's new chair Lord Allen, who took up his position on September 1.

“I fully support this bold initiative which has only been made possible by an extraordinary collective effort across the industry, led by the BHA, and I applaud the efforts of all involved. It shows the great strength of feeling and unity within the sport and demonstrates that racing will not sit quietly by while our future is placed in jeopardy.”

The BHA has warned that harmonisation of the betting tax will contribute to a further fall in turnover for racing following a £1.6bn drop in finances over the last two years owing to affordability checks on punters and a failed attempt by the previous government to push through a Levy reform. The projected financial impact of the proposed tax hike is £330m over five years, according to economic modelling carried out by Regulus Partners and Development Economics, with fears for in excess of 2,700 job losses. Racing currently provides employment for 85,000 people in Britain and contributes £300m per year in tax revenue to the government. 

Lord Allen continued, “We need every part of our industry – trainers, jockeys, stable staff, racecourses, and fans – to stand together and make their voices heard and I urge people across the sport and across politics to attend Wednesday's event.

“We are Britain's second largest spectator sport, supporting 85,000 jobs and delivering over £4 billion of economic value every year. Yet all of this is now being put at risk by a change that would devastate our funding model and the livelihoods that depend on it.

“I say directly to Government and to politicians of all parties: this is not a marginal issue. This is about protecting communities across Britain, safeguarding a national institution, and preventing thousands of people from losing their jobs.”

The BHA, in partnership with the Jockey Club and Arena Racing Company, has arranged a major gathering in Westminster on Wednesday, with many of the sport's leading participants expected to be in attendance, along with politicians.

Andrew Balding, whose Kingsclere stable is currently the leading earner in Britain, said, “There is no question in my mind as to the damage the Treasury's tax proposals could do to racing and it's something I'm extremely concerned about. 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 across Britain, would be threatened by the harmonisation that is being consulted on.

“The viability of businesses such as ours depends on British racing's success. If the forecast financial impact were to become reality the ramifications will be felt in every corner of our industry.”

Balding added, “I sincerely hope that the action we are taking today, coupled with the ongoing lobbying efforts of our sport's leaders, will lead government to reconsider and do all it can to protect what is such a valuable asset for our country.”

 

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