Squeeze on incomes, changes to business rates and a sigh of relief from racing headline key takeaways for the horse world from last week’s budget.
Concerns that online betting on racing would be subject to higher taxes – and crucially, the “catastrophic” impact that this could have on the £4bn industry – have been well documented in recent months (news, 18 September).
Chancellor Rachel Reeves confirmed that there would be no changes to taxes on horseracing, so the sport’s remote betting tax rate will remain at 15%.
British Horseracing Authority (BHA) acting chief executive Brant Dunshea said the move is “an important step by the Government to help preserve revenue streams and protect the 85,000 jobs supported by racing across the country”.
“Racing has been part of the British way of life for hundreds of years. It binds our communities together in shared experience, it brings joy to millions. It puts the country on the world stage.
“It is right that the Government has understood this and acted accordingly,” he said, adding that the BHA recognises the increase in general taxation on the betting industry may have trickle-down effects on racing, and is working with its partners to understand more.
Mr Dunshea said racing will continue to work to understand the effect of other budget-related matters, including implications of business rate changes, which the BHA was intending to pick up with Treasury officials in recent days.
The British Horse Society (BHS) has dug further into the chancellor’s pledge to “introduce permanently lower tax rates” for more than 750,000 retail, hospitality and leisure properties – a promise that appears to be something of a double-edged sword.
BHS chief operating officer Sarah Phillips told H&H the charity welcomes the announcement, noting that “many riding schools and equestrian centres” would come into this 750,000.
“It could bring savings for those equestrian businesses, in England, with a rateable value of less than £51,000,” she said.
“However, we know that business premises in England will have a new rateable value effective from 1 April 2026. If the rateable value increases, the business rates are likely to increase too. The 40% rate relief for retail hospitality and leisure also ends in April 2026, so riding schools are likely to be faced with a bigger business rates bill.”
She added that the BHS encourages anyone who owns or runs a riding centre or livery yard to check what their business rates will be from 1 April 2026 and evaluate the impact of any changes on their business.
“We’ll be helping our approved centres to navigate through the aftermath of this budget, with our business support managers facilitating support through financial initiatives,” said Ms Phillips. “Our work will also continue to make sure every riding school and livery yard has a fair deal, so we can avoid the closure of any more of these important facilities.”
The chancellor has also promised to introduce a support package worth more than £4.3bn over the next three years for a property of any size seeing a large increase in its bill.
Minimum wage increases in the next tax year (£12.21/hr to £12.71/hr for over 21s, plus increases for younger workers and apprentices – see below) will also have an effect on equestrian business, and those working in the industry. More information is also expected on the so-called “mansion tax” and its exemptions, which will be an additional tax to home owners (rather than occupiers), of properties worth £2m+.
Adrian Taylor, senior partner of Taylormade Financial Management (TFM) and Event Horse Owners Association board member, shared detailed analysis of the budget with H&H.
“At TFM we provide advice to individuals, businesses, companies and trustees. Breaking down the effects of the budget to how they affect these different groups all carries the same theme: we are going to endure the highest tax burden the UK has seen since the 1950s,” he said.
Among his many points, he highlighted that fiscal drag, when people end up paying more tax because thresholds have been frozen, “will continue to be a drain”.
He added: “If you contemplate how much inflation we have seen since 2023, and visualise how prices will continue to rise between now and 2031, this represents a long-term squeeze on taxpayers’ disposable income. Making sensible use of the allowances and reliefs that do remain available becomes even more important.”
H&H reported in 2024 that inheritance tax changes in last year’s budget could hit the equestrian industry (28 December 2024). This year, the chancellor announced plans to allow transfer of the agricultural and business property relief allowance of £1m between spouses.
“This is very good news, especially for owners of agricultural land, but it does not remedy the situation, so cartel planning remains a prerequisite when considering the legacy you would like to leave behind,” said Mr Taylor.
At a glance: annual minimum wage (based on a 40hr working week)
21+ (current minimum wage: £12.21/hr; minimum wage from 1 April 2026: £12.71/hr)
2025/6: £25,396.80
2026/7: £26,436.80
Difference: +£1,040
18-20 (current minimum wage: £10/hr; minimum wage from 1 April 2026: £10.85/hr)
2025/6: £20,800
2026/27: £22,568
Difference: +£1,768
Apprentices and under-18s (current minimum wage: £7.55/hr; minimum wage from 1 April 2026: £8/hr)
2025/6: £15,704
2026/27: £16,640
Difference: +£936
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