Thank you to the many constituents who have contacted me about the Labour Government's proposed gambling reforms.
Race meetings in Britain take place 363 days a year, unless called off for adverse weather, equine virus outbreaks and national crises such as the Covid-19 pandemic. It is a measure of how worried British Horse Racing is that, as part of the industry-wide Axe the Racing Tax campaign, they are taking unprecedented action by refusing to race on the 10th September - the first time the sport has voluntarily refused to race in its modern history.
Brant Dunshea, chief executive at the British Horseracing Authority, said,
" We haven't taken this decision lightly but in doing so we are urging the Government to rethink this tax proposal to protect the future of our sport which is a cherished part of Britain's heritage and culture.
"British Racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country."
The Government is proposing to bring existing online betting duties into one single rate which would likely mean the current 15 per cent rate paid by bookmakers on racing would align to that paid by online games of chance, which is currently taxed at 21 per cent.
Shadow Sports Secretary, Louie French MP pointed out,
“The unprecedented move to cancel racing on the 10 September highlights the urgency for the Government to change course and axe the proposed racing tax.’
“Rather than backing British racing and positive reforms that will unlock inward investment to our much loved sport, the Government’s latest tax proposals will further fuel the black market, hurting jobs, punters and racing in the process.”
I can assure constituents; my colleagues and I are backing British racing and we share their very serious concerns about how these Government proposals will impact the horse racing sector.
Economic analysis commissioned by the British Horseracing Authority has found the changes could cost approximately £66 million in lost income via the Levy, media rights and sponsorship. This is because operators are likely to seek to mitigate significant tax rises through cutting bonuses, reducing advertising and marketing budgets and increasing prices. Should the Chancellor decide to increase the rate to above 21 per cent - this could mean the horse racing sector faces an even more detrimental tax hit.
Their proposals threaten jobs, livelihoods, rural communities and the very sport of horse racing.
I urgently echo the calls made by the Leader of the Opposition, the Shadow Sports Minister for the Government, the British Horse Racing industry and my constituents to listen to the concerns of the sector and rethink this disastrous proposal.
