How Rachel Reeves’ Tax Increase Agenda Could Threaten British Horse Racing for Millions of Fans
AFTER dramatically boosting expenditures by EIGHT times her original pledge, Rachel Reeves has resulted in an astonishing £51 billion deficit in public finances — and you’ll be left to face the fallout from her mistakes.
This year’s Budget is poised to bring forth unprecedented tax hikes — including a new Racing Tax currently under consideration by the Treasury.
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Horseracing stands as the second-largest spectator sport, attracting five million viewers annually across 59 venues.
It injects £4.1 billion into the economy and sustains 85,000 jobs.
We boast some of the best horses, trainers, and four of the top ten races globally.
Furthermore, it aids rural areas and towns across Britain, including West Suffolk, home to the renowned Newmarket racecourses, which I am proud to represent in Parliament.
READ MORE FROM NICK TIMOTHY
Nevertheless, the suggested Racing Tax poses a serious threat to this British success story.
Currently, bookmakers are taxed at a rate of 15 percent on racing, but Labour’s plan to unify all online gambling taxes could escalate this to 21 percent.
‘Mindless free-for-all’
Given that racing is also subject to the Betting Levy, these changes would compromise its competitiveness against more addictive online gambling alternatives.
This could result in a £330 million revenue decline for the racing industry within the first five years, endangering 2,752 jobs in the first year.
Ultimately, this will translate to higher prices and fewer racing events due to reduced income.
This showcases a distinct lack of understanding from Labour concerning the racing industry.
Betting enthusiasts who support horse racing typically engage in careful judgment and expertise when placing bets, whether at bookmakers, at courses, or online.
British Horse Racing to Strike for the First Time: Industry Unites Against Betting Tax Hike
Moreover, there are limited chances to wager on races.
In contrast, online gambling resembles a mindless free-for-all and is highly addictive.
There’s no basis for equating horseracing with this.
Yet, as taxes climb, the racing industry — along with millions of its supporters — will feel the impact.
Some might believe the racing industry has abundant resources, but this could not be further from the truth.
While the sector contributes significantly to the economy, profit margins are slim for breeders and trainers.
They invest heavily but frequently see little return.
We are already at risk of falling behind global competitors — such as France — due to a decline in thoroughbred horse breeding.
Nevertheless, the racing industry is taking a stand.
On September 10, the day before the St Leger festival at Doncaster, no races will occur in Britain.
Everyone in the industry acknowledges that the funding of horseracing needs reform.
Nick Timothy
Races at Lingfield Park, Carlisle, Uttoxeter, and Kempton Park will be cancelled.
The industry is ready to absorb a financial blow to deliver its message.
Typically, races are only shelved due to severe weather, equine virus outbreaks, or national emergencies.
However, the entire sector, including owners, trainers, and jockeys, is uniting to protest against Labour’s proposed changes.
This will mark the first occasion in the sport’s modern history that the industry will deliberately refrain from hosting races.
They will gather in Westminster to voice their concerns.
It is widely recognized within the industry that reform is crucial for the financing of horseracing.
In countries like Australia and France, horseracing receives significantly more government support through direct funding or betting taxes than in the UK.
Private investors also extend more substantial support in the USA and Japan.
Prize money in Britain is relatively modest, making races in regions like the Middle East more appealing to owners and trainers than domestic competitions.
Yet the industry continues to face penalties.
No advancements have been made in reforming the Horserace Betting Levy, which constitutes one-third of the industry’s revenue.
‘Nobody has any fun’
Affordability checks have been enacted for anyone wagering over £150 on racing in a month, driving customers away and resulting in an estimated £3 billion in lost turnover over just two years.
Labour officials offer reassuring words but do not take effective action.
The Racing Tax represents the final straw.
Opposing Labour’s taxation strategy does not signify resistance to change.
The Horserace Betting Levy can be adjusted by applying it to the total turnover of bookmakers, rather than just their profits.
It could also include wagers on international races as long as the bookmakers are UK-based.
The rate could rise above ten percent.
This would benefit both the industry and bettors.
Additionally, there is much more that the sport can do to modernize and increase revenue.
Yet the Racing Tax exemplifies typical Labour behavior — faceless bureaucrats meddling in the lives of the public, undermining a thriving sector, and ensuring decreased enjoyment.
They simply do not understand the workings of the economy, which is why they are stifling it with higher taxes and regulations.
We must unite to support horseracing to safeguard this essential yet vulnerable industry.
