'It will wreck racing' - government's 'mad proposal' for online gambling duties compared to infamous pasty tax

Government plans for online gambling duties have been compared to the infamous 'pasty tax' as a report from a cross-party group of politicians on the future of the sport was unveiled in Westminster on Monday.

The report, 'Securing Racing's Future: The Threat to British Horseracing', has been produced by the All-Party Parliamentary Group (APPG) for Racing and Bloodstock and warns ministers that they must take action as the sport faces a 'triple whammy' of financial threats caused by government policies.

• 'The time for warm words has ended, we now demand action' - politicians call on government to secure racing's future 

The most immediate threat comes from Treasury plans to replace the current three-tax structure of online gambling duties with a single duty that would tax bets on horseracing at the same rate as online casino and slot games.

It is feared that would increase costs for online bookmakers, reducing promotion of the sport and leading to fewer people betting on racing, in turn hitting the sport's finances.

Conservative MP and APPG co-chair Nick Timothy compared what he described as the "mad proposal" to former chancellor George Osborne's decision to impose VAT on hot snacks like Cornish pasties, a proposal reversed following public opposition.

Timothy said: "In the Treasury they love equalising things and tidying things up. We probably all remember the pasty tax that got George Osborne into so much trouble.

"The pasty tax saga will look like a trifle compared to this. This is really serious and we need to stop it."

Timothy said the Treasury plans could be described as a "racing tax", adding: "You need that kind of simplicity for people to see what the effects actually are, rather than what the government thinks they might be."

Acting BHA chief executive Brant Dunshea said British racing would run an extensive campaign against the proposals over the coming months which would "leave no stone unturned".

He added: "We have got examples from all over the world where governments have put in place various forms of interventions, whether they are things like affordability checks or taxation-related increases, that affect people's engagement with our sport.

"This is an opportunity for us to demonstrate how those unintended consequences have played out in other jurisdictions and why it is not a good idea to intervene in this way, and we will continue to do that."

The report included polling which found that more than half of British people believe racing to be an important part of British culture, with more than 60 per cent believing the government has a responsibility to protect the UK's international sporting standing.

Timothy's co-chair Dan Carden MP said he hoped the campaign would grow.

He said: "I'm a Labour MP and I want my government to do the right thing and back British racing for the future and make it as successful as it possibly can be."

Dan Carden: "I want my government to do the right thing and back British racing for the future and make it as successful as it possibly can be"

In its reaction to the report, gambling industry body the Betting and Gaming Council (BGC) said the APPG was correct about the threat the government proposals presented to racing.

BGC chief executive Grainne Hurst said: “Any tax rises now, so soon after a white paper which cost the sector over a billion in lost revenue, will only prevent growth, wreck racing and push punters to the growing unsafe, gambling black market, where they pay no tax at all.

"The APPG for racing and bloodstock is right, this government is threatening the future of the sport and business if it forces through any further tax hikes on punters.

"We have been clear, any tax hike would be utterly self-defeating for the Treasury, while making a mockery of its growth strategy."

A government spokesperson said they recognised the "huge importance" of horseracing to the British sporting calendar and its significant contribution to the economy.

They added: "We have recently launched a consultation on the tax treatment of remote gambling and are actively engaging with the sector, so are grateful to the APPG for their contributions and will consider the report fully."

A spokesperson for the Treasury said its consultation was centred on simplifying online gambling duties "to cut down bureaucracy" and was not about "increasing or decreasing rates".

Read these next:

'The time for warm words has ended, we now demand action' - politicians call on government to secure racing's future 

'It is going to affect racecourses and it is going to affect jobs' - Jim Mullen on 'daft' plans for tax harmonisation 

'This proposed tax raid would be a nightmare for the sport' - MPs join calls for betting on racing to be treated differently 

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