British racing officials welcome decision not to raise betting tax

Brant Dunshea, acting chief executive of the British Horseracing Authority, has welcomed the decision not to raise the current 15 per cent tax rate on bets on the sport.

It had been feared Chancellor Rachel Reeves could hike the duty on racing bets in the Budget, prompting a BHA-led campaign backed by the wider industry to ‘Axe The Racing Tax’, which saw four meetings on September 10 cancelled in an unprecedented day of strike action.

Analysis commissioned by the BHA suggested that £66million would be lost to the sport and 2,752 jobs would be at risk in the first year under a proposed tax rise, leaving Dunshea delighted the feared harmonisation of betting duties has not come to fruition.

He said: “Today’s welcome outcome demonstrates that the Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset – culturally, socially and economically – and we welcome this support.

“Betting on racing is an integral part of the enjoyment of our sport, and maintaining the rate of horserace betting duties is an important step by the government to help preserve revenue streams and protect the 85,000 jobs supported by the 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.”

While tax on racing remains unchanged, general betting duty, paid on other forms of sports betting, will remain at 15 per cent in betting shops but will rise to 25 per cent online, while remote gaming duty, paid on online casino betting, will rise from 21 to 40 per cent which could yet impact the sport.

Dunshea added: “At the same time, we recognise that the increase in general taxation on the betting industry may have trickle-down effects on racing. We will work with our partners in the betting industry to understand the implications of this, and how we can work together to ensure that British horseracing continues to thrive.””

BHA chair Lord Charles Allen thanked all in the industry for “standing as one to communicate our message”.

He said: “Following the clarity offered today by Government, we look forward to working with ministers and their officials, and the betting industry, to explore how we can continue to grow and promote British racing to a wider audience.

“The government has rightly recognised that we are not only a vital part of the fabric of the British way of life, but we are also a global leader and one of the country’s most important soft power levers. We want to maintain Britain’s place on the world stage.”

David Armstrong, chief executive of the Racecourse Association, is mindful of the wider implications of the Budget on tracks.

He said: “All stakeholders within our sport were united on the damage that would have been caused should a tax increase be levied. For racecourses, we are pleased that the vital socio-economic importance of these venues to communities across Great Britain have been acknowledged.

“While the horseracing exemption is welcome, our sport still faces significant challenges which will need to be addressed. We are working closely with the British Horseracing Authority and other stakeholders to understand the wider implications of other areas of the Budget and the impact these could have on both our sport and racecourses.”

National Trainers Federation chief executive Paul Johnson spoke of “considerable relief” at the tax decision, but believes further effort is needed “to turn around the decline that we are in at present, with the sport continuing to be financially disadvantaged relative to other jurisdictions.

He added: “Today’s Budget sees us live to fight another day, but the sport has work to do, alongside Government, if we are to create a more prosperous future.”