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Brunch talks: government committed to working on levy after Priti Patel reports

All MPs from the House of Parliament should be invited to 'National Racehorse Day'
Racing is set to press government for further levy reform

The government has said it is committed to ensuring the levy system can best support British racing as talk of reform emerged again following reports that home secretary Priti Patel had discussed the issue with leading Newmarket racing figures.

Patel visited Newmarket with husband Alex Sawyer on a family trip last month when her itinerary included attending the Tattersalls August Sale.

The Guardian reported they also had "brunch" with local trainers including John Gosden and William Haggas at which concerns were raised over the state of the sport's finances.

The sport recently said it would press the government to work on the next stage of levy system reform to extend it to betting on overseas racing, which could raise more than £30 million in extra income per year.

However, there are also calls for further reform to change the basis of the levy from gross profits to turnover, which it is claimed could raise tens of millions of pounds more.

Racing falls under the Department for Digital, Culture, Media and Sport rather than the Home Office, and a DCMS spokesperson said on Wednesday: "We made significant reforms to the Horserace Betting Levy in 2017 by fixing the rate at ten per cent, and extending the scope to include offshore online bookmakers for the first time.

"The government remains committed to ensuring the levy is administered efficiently so that it can best support the racing industry and we will be working with the Levy Board to achieve this."

Following the meeting with Patel a number of figures from both racecourses and horsemen, including Arena Racing Company chief executive Martin Cruddace, are understood to have agreed to work more collaboratively not only on the levy but also other issues, including reducing tensions between the two sides.

The intention was said to be to offer support to the BHA on government matters.

There is said to be some exasperation among the BHA's leadership over the involvement of former chairman Steve Harman, who left the governing body two years ago following allegations of a conflict of interest, which he denied.

Steve Harman: BHA chairman received letter from culture secretary Matt Hancock
Steve Harman: 'The window is now short'Credit: Edward Whitaker

However, Harman said: "All in racing should be delighted that this group is moving fast to get levy development back on track.

"The next stage of levy development was choreographed in 2018 for delivery in 2019, and the group's intervention comes at a time when racing's finances are in crisis. I hope that all parties in racing get behind this group and recognise that the window is now short.

"Indeed, I feel this renewed thrust is the best news I have seen in racing for some time."

The reports of further demands on betting operators to fund racing did not go down well with one bookmaker source, who said: "What racing needs reminding of is without the betting industry there is no racing. They should stop looking down their noses at the betting industry."

Levy income, which reached £97m in 2019-20, has been hit by the Covid-19 outbreak, although the Levy Board this week said that better-than-expected turnover levels since racing's resumption indicated the figure for 2020-21 would be at least £70m, and possibly more.


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Bill BarberIndustry editor

Published on 9 September 2020inNews

Last updated 19:40, 9 September 2020

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