British racing went on strike for the first time in history on 10 September, in protest at a proposed increased tax on online betting that has been dubbed an “existential threat” to the sport.
The action was in response to government proposals to harmonise all remote gambling duties, which would increase the 15% tax rate paid by bookmakers on racing to bring it in line with online gaming, taxed at 21%. Bookmakers already pay an additional 10% of gross profits on racing betting into the Horserace Betting Levy, which is reinvested into the sport.
No racing took place in Britain on the day of the strike and the four race meetings due to take place were rescheduled.
Economic modelling commissioned by the British Horseracing Authority (BHA), undertaken by Regulus Partners and Development Economics, found the change could have a “minimum impact of £66m” and put 2,752 jobs at risk in the first year alone. The BHA said that in the worst-case scenario, the sport could lose £160m income a year and put some racecourses at risk of closure.
Dan Tomlinson, exchequer secretary to the Treasury, described “speculation” on tax rises as “not only inaccurate, but also irresponsible”.
The proposal to harmonise remote gambling duties was set out in a consultation document by the Treasury in April this year.
Levy funding, and other investment from racing, benefits the wider horse world in a number of ways, through veterinary research, disease surveillance and funding to support rare breeds, among others.
The proposals do not directly change the percentage of funding for the levy, which is already calculated on pre-tax profits. But the BHA noted that any reduction in the sport’s funding will have effects.
“British racing has invested £60m into research, veterinary science and equine health since the year 2000. This investment benefits all breeds of horses in Britain and worldwide and makes British racing by some distance the largest investor in welfare research and science in Britain,” a BHA spokesperson told H&H.
“Any impact on the sport’s funding will inevitably impact the resources available to deliver this work, which will in turn have an impact on enhancements in equine welfare across all breeds nationwide.”
Jockeys Tom Marquand, Oisin Murphy and Hollie Doyle were among those in Westminster on the day of the strike.
BHA chairman Lord Charles Allen said: “We are Britain’s second largest spectator sport, supporting 85,000 jobs and delivering over £4bn 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.”
Jockey Kieran Shoemark added: “Every day, I see the dedication of stable staff who work tirelessly to care for the horses, and I know their livelihoods, like mine, are under threat if investment in our sport begins to decrease.
“If racing loses investment, there will simply be fewer horses to ride, fewer opportunities to compete and less chance for the next generation of jockeys to build a career.”
Trainer Andrew Balding said he is “extremely concerned” about the damage the tax proposals could do to racing.
“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,” he said.
Trainer William Haggas added that he, too, is alarmed by the potential consequences and also worries about the impact on communities built up around the sport.
Mr Tomlinson said: “The chancellor has been clear that speculation on tax rises, which is what this is, is not only inaccurate, but also irresponsible. We have not announced an increase in the tax on horserace betting, and racecourse betting currently gets a 100% tax break which we have no plans to change.
“We know horseracing is part of the cultural fabric of the country, that’s why it’s the only sector that benefits from a government-mandated levy. Our wider gambling consultation is only about levelling the playing field and simplifying the system, and we are working closely with the industry to understand any potential impacts.”
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