Thousands of job losses and £330 million in lost revenue if 'racing tax' goes ahead, warns BHA

Thousands of jobs could be lost within a year if Treasury proposals to harmonise online gambling taxes are introduced in stark new figures released by the BHA, which on Sunday launched a petition against the policy.

Those startling figures also contain a forecast £330 million hole for British racing in lost revenue over the next five years if the Treasury does not rethink its proposal to hike the rate of tax on online betting on racing and sports from 15 per cent to 21 per cent, bringing it up to the same level as online casino games and slots.  

• To help stop the racing tax and back British horseracing, the BHA is urging supporters to sign the #AxeTheRacingTax petition

Over the last month the sport has rallied around calls from the BHA, leading trainers and breeders to 'Axe the Racing Tax' amid fears that the loss in revenue to the racing industry would amount to £66m in year one.

But new independent modelling commissioned by the BHA from Development Economics paints an even more devastating picture over the longer term, a scenario acting chief executive Brant Dunshea described as posing "one of the gravest risks to horseracing the sport has ever seen".

British racing supports the employment of around 85,000 people directly and indirectly, and the headline figure of 2,752 jobs being put at risk within the first year of the new rate being introduced was described by Dunshea as a potential harbinger of "irreversible decline" for the sport, as he called on the public to come together with the industry in backing the petition. 

"This latest tax bombshell from the government, if followed through, poses one of the gravest risks to horseracing the sport has ever seen," said Dunshea. "The horseracing industry is already in a precarious financial position, and the latest research provides a much more catastrophic forecast than we first thought. 

"We’re talking thousands of jobs at risk across the supply chain, severely impacted towns and communities, and the irreversible decline of the country’s second most popular sport.

"Together, as an entire industry, we’re asking the British public for support in calling on the government to rethink this policy and stop undermining a much-loved part of British heritage and culture. It’s time to axe the racing tax and back British horseracing.’"

Beverley is one of nine racecourses in Yorkshire, a region which could lose £37m in racing incomeCredit: Hannah Ali

The modelling contains more detail of the devastating impact which could be felt in key regions of the racing map; Yorkshire is home to nine racecourses, 35 trainers and a wide range of stud farms.

The BHA predicts the region would suffer a £37m loss in income across the next five years if the tax rate is harmonised at 21 per cent, while job losses could run to 342 in just the first 12 months.

At a recent select committee hearing in parliament, Doncaster Central MP Sally Jameson pressed James Murray, the exchequer secretary to the Treasury, for assurances that the government would continue its dialogue with racing over the issue of taxation. 

Labour's Jameson was one of three Yorkshire MPs with racecourses in their constituency to support the anti-harmonisation campaign when contacted by the Racing Post, along with Conservative colleagues representing Beverley and Thirsk. 

With independent MP for York Rachael Maskell in favour of raising the tax rate on betting, that left five constituency MPs representing tracks in Yorkshire (two Labour and three Conservative) who did not reply to the request to answer three questions on the issue. 

David Menuisier meets Sir Keir Starmer at Doncaster's St Leger meeting last SeptemberCredit: Edward Whitaker (racingpost.com/photos)

The petition is being launched on the eve of Glorious Goodwood, and local trainer David Menuisier spelled out the danger to direct racing employment – as well as the wider leisure sector of pubs, hotels and taxi drivers – should the change in rate be enacted, describing it as "risking the ecosystem that keeps this sport alive".

Menuisier said: "This move from the government would put thousands of trainers, owners, jockeys and stable staff at risk. Racing is much more than just a sport in this country. It brings fun and excitement to millions and is a major local employer, particularly here in West Sussex as we prepare for another fantastic week at Goodwood. 

"The government needs to acknowledge the unique and significant social and economic contributions the horseracing industry makes to the country and stop risking the ecosystem that keeps this sport alive."

The economic modelling reveals the threat to jobs runs right from trainers through their stable staff and jockeys, on to support services such as farriers and feed merchants. 

Sarah Guest: "It will be stable staff like me who will feel it first."Credit: Dan Abraham (racingpost.com/photos)

And it is the rural economy which will suffer the greatest impact, a point brought up by Sarah Guest, a senior member of trainer John O'Shea's team in Gloucestershire and the recipient of the employee of the year prize at the 2023 Thoroughbred Industry Awards.

"A tax rise on betting is only going to stifle the sport," said Guest. "I love what I do, but if the industry starts shrinking it will be stable staff like me who will feel it first. 

"It’s a genuine worry, and the government needs to understand this is going to have significant impact on everyone working in racing – not just the betting companies."

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Here are the three key questions on the racing tax put to MPs by the Racing Post - and exactly what they said 

Write to your MP about the Racing Tax

Racing TV has created a template letter than can be used to email local MPs about your concerns over the 'racing tax'. Follow this link to access the template – it should not take more than a couple of minutes to complete.