UK (Parliament Politics Magazine) – Rachel Reeves’ proposed tax reforms could severely impact Britain’s £4bn horse racing industry, raising concerns from major stakeholders.
As reported by the Daily Express, Chancellor Rachel Reeves faces criticism over a proposed tax hike, which experts warn could threaten thousands of jobs in the UK’s horseracing industry.
How did horse racing impact the UK economy and jobs?
Horseracing has become Britain’s second most popular sport by attendance. It employs 85,000 people nationwide, including more than 10,000 in hands-on roles at racing facilities and 660 breeding farms, many located in rural areas.
The sport contributes £4.1 billion to the economy each year and pays £300 million in taxes. A 10% share of racing profits also goes back into prize money, training, and horse care.
The government imposes a split tax regime for online gambling, with a 15% levy on real-life horse racing bets and a higher 21% charge on virtual casino games like roulette and poker.
A new proposal from the Treasury suggests introducing a unified tax rate that would apply equally to both horse racing and virtual casino gaming, potentially at a higher level, as part of efforts to reduce the fiscal deficit.
How many racecourses did the Jockey Club operate?
- 15 Racecourses (including):
- Aintree
- Cheltenham
- The National Stud – located in Newmarket
- Training centres:
- Newmarket
- Epsom
- Lambourn
- Charity:
- Racing Welfare – supports people working in horse racing
What did Jim Mullen say about Rachel Reeves’s tax plan?
Jim Mullen, CEO of the Jockey Club, said Chancellor Rachel Reeves’s tax plans may have damaging effects on rural areas and the long-established racing industry.
He argued,
“Britain can be justifiably proud of its racing industry, which is rich in history and heritage, world-leading in its standards of equine welfare and Thoroughbred breeding and a vital contributor to towns, villages and communities up and down the UK through jobs and tourism.”
Mr Mullen said,
“As the second most attended sport in Britain, it provides entertainment and a fantastic, affordable day out for people from all walks of life, while also supporting 85,000 jobs and contributing more than £4 billion to the UK economy each year.”
He stated,
“What we need the Government to understand is that rather than simply generating more money from bookmakers, these proposals would have far more wide-reaching and potentially devastating consequences for people’s livelihoods and a much-loved and valuable British institution.”
He stated,
“Bookmakers contribute £350 million to British racing annually via the Levy, media rights and sponsorship to fund everything from prize money and jobs to veterinary and equine welfare research. Gambling on horseracing is also statistically proven to represent a far lower risk of gambling harm than online games of chance like casinos and slots, with levels as low as those associated with some National Lottery products.”
Mr Mullen said,
“This is one of those occasions where an entire sport and industry is uniting to campaign against proposals which would have disastrous unintended consequences for so many people. That’s why we’re all urging the Government to back British racing and ‘Axe the Racing Tax’ and encouraging anyone who cares about our sport to write to their local MP. We trust that, once the Government grasps the differences between these taxes and their impact on British racing, it will avoid sleepwalking into irreparable damage to a world-leading UK sector.”
What did Ripon’s MD say about the proposed racing tax?
Ripon racecourse’s managing director, James Hutchinson, stated,
“I have seen the projections of what the outcome might be, and that would be devastating for racing to lose that sizable level of income, as there are no measures to be able to replace it.
He added,
“I would call on everybody to get behind the ‘axe the racing tax’ campaign, and it’s vital we make the government aware of it.”
What did the BHA Chief say about the government’s betting tax plan?
Brant Dunshea, CEO of the British Horseracing Authority, said,
“The Government is proposing a tax bombshell that could devastate British horseracing and send a cherished national institution into decline.”
He stated,
“Harmonising online betting duties will not help the Government tackle its budget deficit, but it will punch a huge hole in racing’s finances, risk thousands of jobs across Britain, mostly in rural areas, and threaten the future of the country’s second most-popular sport.”
Mr Dunshea added,
“British racing has been part of our nation’s heritage for hundreds of years. From the King and Queen to the white van driver, our sport has a unique appeal that stretches across all communities. It is deeply woven into the fabric of our society. That needs to be preserved to ensure our racecourses continue to be the beating heart of their communities and welcome racegoers for generations to come.”
He stated,
“From now until the Budget, we will be hammering home a very simple message to MPs, Peers and the Government on behalf of millions of racing fans. It’s time for the Government to back British racing and axe the racing tax.”
What did HM Treasury say about the online betting tax plan?
A HM Treasury spokesperson said,
“We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy.”
They added,
“It is not about increasing or decreasing rates, and we welcome views from all stakeholders, including businesses, trade bodies, the third sector and individuals.”
How many gambling taxes are there – and what’s changing?
Current tax structure
- Pool Betting Duty
15% tax on profits from bets where winners share a pool of money. - General Betting Duty
15% tax on profits from sports betting, including horse and dog racing. - Remote Gaming Duty
21% tax on profits from online games of chance, such as casino games and slots.
Proposed tax reform
- The Treasury is consulting on replacing the three-tier system with a single Remote Betting and Gaming Duty.
- The new rate would be at least 21%, but possibly higher.
- Consultation is open until 21st July.
Why are racing bettors upset about new gambling tax plans?
Sean Trivass, head of the Horseracing Bettors’ Forum, said many members were unhappy with the government’s decision to categorise horseracing bets alongside casinos and slots.
Every 20 racehorses in training contribute £1m to the rural economy. They also support jobs at urban racecourses in cities like Liverpool and Newcastle.
Alongside taxes, 10% of bookmakers’ gross profits from British horseracing go to the Horserace Betting Levy Board, which reinvests it into the sport.
The HBLB operates independently of public funding. Since 2000, it has invested over £56 million in critical veterinary research for British racing.
What did Rachel Reeves say about the future of ISAs?
Rachel Reeves stated,
“I will continue to consider further changes to ISAs, engaging widely over the coming months and recognising that despite the differing views on the right approach, we are united in wanting better outcomes for both savers and for the UK economy.”
She said,
“For too long, we have presented investment in too negative a light, quick to warn people of the risks, without giving proper weight to the benefits.”
Ms Reeves added,
“Our tangled system of financial advice and guidance has meant that people cannot get the right support to make decisions for themselves.”
What did Mel Stride say about Rachel Reeves’ tax plans?
The shadow chancellor, Sir Mel Stride, stated,
“Rachel Reeves should have used her speech this evening to rule out massive tax rises on businesses and working people. The fact that she didn’t should send a shiver down the spine of taxpayers across the country.”