Lipsey warns reformed system is 'extremely dangerous for racing'

Lord Lipsey has warned racing to expect a legal challenge to the government's reforms of the levy system.

The reforms received state aid approval from the European Commission last week before being signed into law by sports minister Tracey Crouch on Monday.

Lipsey, who has been a long-term critic of both the levy and the government's plans to reform it, believes a challenge on state aid grounds is likely.

He said: "I'm sure there will be challenges, including to the European Commission state aid approval. This is only the start of the story.

"I fear it's extremely dangerous for racing. There's a good chance new payments will fall at Becher's Brook in the courts."

A legal challenge to the reforms could also come domestically via a judicial review, it is understood.