'We won't be left with much of an industry' - John Gosden warns of challenges facing British racing on day of government protest

John Gosden outlined the challenges facing British racing at the day of protest against government plans to reform online gambling taxes in Westminster on Wednesday as he warned the sport's financial situation was leaving a "diluted and downgraded" horse population.

He told figures from across racing and politics the loss of quality horses abroad as akin to "flogging the family silver".

Gosden said that when he returned to British racing from the US in the late 1980s that there had been enormous improvement due to "an incredible amount of international and Middle Eastern investment".

The result of that investment had made the UK the world leader when it came to Flat horses on turf.

However, Gosden added: "For the UK to be reliant on international owners is both risky and presumptuous in a sense. A lot of those owners are older or are dead and I think it is being very presumptuous of us to assume that their children can maintain that level of investment."

Gosden also said that the American owners that used to have horses trained in Britain had dwindled away.

"There are not the numbers they used to have for the very simple reason they don't want to race here because it's such pitiful prize-money. The Japanese, Australians, Hong Kong Jockey Club and the Americans buy our stock and they export it, understandably, to their countries.

"They buy quality horses and the result is that our equine population is diluted and downgraded. The top 25 per cent of sales, whether public or private, are largely filled with horses exported abroad. It is really flogging the family silver. Of course it looks good on export figures but, in the end, we won't be left with much of an industry."

Gosden said British racing was struggling with the high cost of production of horses, and added: "It's clearly illustrated by the terrifying downturn in the foal crop that, on the curve we are on now, inside five years 25 per cent of our foal crop will have gone.

"You know very well what that means. Uncompetitive racing, small fields, something that will turn people off and the inevitable closure of racecourses."

Gosden told attendees that the UK received the lowest takeout from betting of any major racing jurisdiction.

He added: "We have to be concerned that our industry contributes £4 billion to the economy, a figure which will doubtless decrease rapidly if they start putting up the betting tax.

"There is a worldwide symbiotic relationship between racing and betting. The government needs to be careful that if they tax more, they are going to wind up with less return."

Brant Dunshea at the Queen Elizabeth II conference centreCredit: Edward Whitaker (racingpost.com/photos)

The BHA's acting chief executive Brant Dunshea told the event that the government's proposals around online gambling duty harmonisation had the potential to "destroy British horseracing".

He said his job was to "create an environment where our owners, breeders, trainers, racecourses, jockeys and our wonderful stable staff all thrive".

He added: "If they thrive, our sport thrives. When our sport thrives, the people of our great nation thrive. But when people fear for their future, the nation struggles, its people suffer and hope in an industry can decline overnight.

"The government says the purpose of this proposal is to create a simpler system. The government says its purpose is to create a more streamlined system and the government says its purpose is to create a fairer system. The government has encouraged all interested parties to participate and respond fully to this consultation.

"We have, we are, and our response is clear. No, we do not support this proposed racing tax hike. British racing must be treated differently."

Read these next:

Racing strike in pictures: award-winning photographer Edward Whitaker captures the shots outside the Houses of Parliament 

Lord Allen calls on British racing to stand 'shoulder to shoulder' in racing tax campaign 

'If what the government plans to do comes to fruition there'll be very few of us smaller trainers left' - the Lambourn view 

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