John Gosden calls on sport to lobby MPs over racing tax proposals to avoid 'devastation' for the industry

John Gosden has said it is incumbent on everyone in racing to lobby their MP about Treasury plans to harmonise gambling taxes or risk the industry facing "devastation".

The six-time champion trainer was speaking after the BHA issued a call to arms to the sport to oppose the 'racing tax', which it described as one of the "gravest risks" the sport has ever seen.

The Treasury is currently consulting on plans to harmonise the different online gambling duties into a single Remote Betting and Gaming Duty.

• BHA issues urgent call to arms to 'axe the racing tax' over fears of £66 million hit to the sport's finances 

• Comment: The racing tax would be desperate grab for revenue that would come at the cost of one of Britain's last remaining global success stories 

At present betting on racing is subject to a 15 per cent duty, but there are fears the government's plans could lead to it being aligned with the 21 per cent rate levied on games of chance such as online casino and slots.

Modelling commissioned by the BHA has shown that such a move could impact British racing's finances by as much as £66m in lost income through the levy, media rights and sponsorship, as bookmakers look to mitigate the tax rises through fewer offers, cuts in sponsorship and less generous prices.

A larger rise in the duty would be "devastating", the BHA said, with a hike to 40 per cent costing as much as £160m.

Gosden described both the racing and breeding industries as being at a "crossroads".

"We know  foal crops are in decline and the ramifications of that are clear to everyone," he added. "Then we have been dealing with affordability checks which have caused a massive upsurge in black market gambling where no revenue comes back to government, no revenue back to racing and no protection for the punter.

"We know very well that we got close to a levy agreement with the last government, when they went and pulled the plug on it by calling an election.

"If we don't act in the correct way now we are going to see damage done from which both the racing and the breeding industry will not be able to recover."

Foal crops are in declineCredit: Edward Whitaker (racingpost.com/photos)

Gosden also questioned the apparent lack of distinction at the Treasury between betting on racing and online casino gambling and the latter's greater potential for harm.

He added: "They must understand in the Treasury they are talking about two completely different forms of gambling and there is no way they can be put in the same bracket.

"The other factor, if they impose the same tax on us as on online casino, is the levy on top. We become the most expensive product for operators and they will concentrate on gaming and push us into the periphery, into the margins.

"That will sound the end of a very important industry in this country, and I emphasise the racing industry and the breeding industry. We still breed and race the best turf horses in the world."

Gosden said the government would be making a "huge mistake" if it looked to help solve its problems by raising the tax on betting on racing.

John Gosden: "They must understand in the Treasury they are talking about two completely different forms of gambling"Credit: Edward Whitaker (racingpost.com/photos)

He added: "It is incumbent on everybody in racing and breeding to get on to their MP in every constituency we are in up and down the country. We have got to make this point otherwise the devastation to our industry will not be pleasant and we will feel responsible because it was on our watch."

Leader of the opposition Kemi Badenoch and other senior Conservative Party figures are set to hear more about the government's proposed hike in tax on British racing when they meet senior figures from the sport at a political roundtable in Newmarket on Friday.

Treasury ministers have already been questioned about the impact of the proposals on British racing this week, with James Murray saying that he and officials were working with racing to identify "any unintended consequences and possible mitigations".

And government backing for British horseracing came up again in the Commons on Thursday, with ministers promising to support the sport.

Dame Caroline Dinenage MP: "When will the government really start to back British horseracing?"

Conservative MP Dame Caroline Dinenage, the chair of the culture, media and sport select committee, said that racing was facing a "looming and imminent crisis" and asked: "When will the government really start to back British horseracing?"

In response culture secretary Lisa Nandy said: "We understand not just the joy that horseracing brings to millions of people in the UK and across the world but the huge economic benefits that it produces. We are absolutely determined to back British horseracing to the hilt."

Nandy said culture minister Stephanie Peacock had had "several meetings and discussions" with the industry, adding: "We will continue to ensure we are present, walking alongside them in order to support them."

Shadow culture minister Louie French also called for assurances from the government that it would not go ahead with its "planned tax raid on bingo halls, racecourses and sports betting, which will immensely damage sponsorship of major sporting events, fuel the black market and cost thousands of jobs across the country".

Read these next:

Comment: The racing tax would be desperate grab for revenue that would come at the cost of one of Britain's last remaining global success stories 

BHA issues urgent call to arms to 'axe the racing tax' over fears of £66 million hit to the sport's finances 

Treasury working with racing to identify 'unintended consequences' of gambling tax proposals 

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