Tetchy Treasury statement suggests racing might have to tread carefully with its tax campaign

British racing's day of protest in Westminster last week certainly made an impression, not only through media coverage but also, apparently, in the corridors of power.

Labour MPs were in short supply among the more than 200 people who gathered at the Queen Elizabeth II Centre in London last Wednesday to hear passionate arguments for the sport to be spared from government plans to harmonise online gambling duties.

On that front Sarah Guest, assistant trainer to John O'Shea and crowned employee of the year at the Godolphin Thoroughbred Industry Employee Awards in 2023, was most impressive and should be employed as racing's secret weapon when speaking to decision makers about the sport whenever possible.

However, the Axe the Racing Tax campaign has evidently hit a nerve at the Treasury, which made what was seen to be the unusual move of issuing a statement on the eve of the Westminster event.

The statement was also notable for being particularly tetchy in its tone.

“The chancellor has been clear that speculation on tax rises, which is what this is, is not only inaccurate, but also irresponsible," said exchequer secretary to the Treasury Dan Tomlinson.

"We have not announced an increase in the tax on horserace betting, and racecourse betting currently gets a 100 per cent tax break which we have no plans to change."

Kieran Shoemark, Oisin Murphy, Saffie Osborne, Lily Pinchin, Richard Johnson, Hollie Doyle, Tom Marquand and Paul O'Brien outside the Houses of Parliament last weekCredit: Edward Whitaker

There are a few points to make about what was a short but punchy statement from the Treasury minister.

As Tomlinson himself said last week in response to a written question from Liberal Democrat MP Charlotte Cane about the impact of tax harmonisation on horseracing, the proposals being examined are about "merging the three current taxes that cover remote (including online) gambling into one".

As readers are no doubt aware, general betting duty is currently set at 15 per cent and remote gaming duty at 21 per cent.

If the idea of the harmonisation is to simplify the gambling tax system it would not make sense to retain different tax rates for different products.

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

Now, that could of course mean that remote gaming duty could be cut to match general betting duty but, to borrow a phrase from PG Wodehouse, the contingency is a remote one. Could you imagine the backlash and howls of anger if that were to happen given the current discourse around gambling? There would be plaster coming down from the ceiling at the Treasury offices.

It would therefore seem perfectly logical to talk about the possibility of tax increases and their potential impact on British horseracing at this point. Indeed, there would be little point waiting to see what the government decides before racing makes its case. It would be too late by then.

The point about racecourse betting receiving a tax break was also strange. Racecourse bookmakers are an important and integral part of the racegoing experience but their role in the direct financial contribution to British racing from the betting industry is very small – less than two per cent of the total. 

Tomlinson's comment about racing being "the only sector that benefits from a government-mandated levy" also seemed particularly pointed.

It is safe to say, therefore, that British racing's campaign has made an impression at the Treasury but it is also probably safe to say that there is a degree of displeasure as well. Irritation with racing within the government might also be exacerbated if the sport's campaign is regarded as becoming too closely drawn to party political lines.

The support for racing's case from opposition parties is, of course, to be welcomed, and the likes of Conservative MPs Nigel Huddleston, Louie French and Mims Davies were at last week's event. What would be counter productive would be for Labour to regard racing as being allied with the opposition in bashing the government.

MPs at racing's protest event last week (from left): Andrew Griffith, Mims Davies, Jack Rankin, Charlie DewhirstCredit: Edward Whitaker (racingpost.com/photos)

The news that chancellor of the exchequer Rachel Reeves will not deliver her budget until November 26 has extended the campaign against the tax harmonisation proposals for another three or four weeks.

The House of Commons goes into recess on Tuesday before party conference season gets into full swing and the BHA team will be deployed at those events to continue pressing racing's case.

Arena Racing Company chief executive Martin Cruddace told last week's event that racing needed to "keep our foot on the accelerator" over the next eight weeks as far as the campaign against tax harmonisation was concerned.

Given the existential threat to British racing should the government proposals go through, Cruddace is correct. But racing also needs to tread carefully judged by the Treasury's reaction last week.

Lord Allen a busy man as he begins to set out his stall

If Lord Charles Allen is contracted to work only one day a week as BHA chair then the accounts department at the governing body can expect an overtime claim this month.

Allen was certainly a busy man last week as he made himself known to the sport and spoke in public for the first time since taking over his new role at the start of September.

He chaired his first BHA board meeting last Tuesday and 24 hours later he was among those attending the Axe the Racing Tax protest in Westminster.

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

BHA chair Lord Charles Allen spoke at the Axe the Racing Tax event in WestminsterCredit: Edward Whitaker (racingpost.com/photos)

Although he was not scheduled to be among the speakers at the event, Allen was happy to accept the microphone when asked a question from the floor and called on the audience to contact their local MP to press racing's case.

Then on Friday he was at Doncaster for the second day of the St Leger meeting when he was interviewed by Matt Chapman for ITV and set out his immediate priorities – finding a permanent chief executive, recruiting new independent board members and dealing with the tax harmonisation issue.

Allen did give further clues to his approach as BHA chair, which would not come as a huge surprise given his long career in business.

"I was not asked to come and be the chairman of a regulator, I was asked to come and actually commercialise the sport," Allen said before adding: "We were a regulator; we now have to become a commercial leader."

Other racing bodies have in the past been reluctant to allow the BHA much of a commercial role and the next few months should demonstrate whether things have changed following Allen's arrival.

Barber's bullets

Flutter launches grassroots sports initiative

Flutter Entertainment last week launched Cash4Clubs 2026, which offers £500,000 to sports clubs across the UK and Ireland. 

Two hundred and fifty clubs will be able to bid for grants of £2,000 a time to help buy new equipment, hire coaches, run training programmes or boost their marketing to bring in new members.

Flutter's chief executive for the UK and Ireland Kevin Harrington said: “Grassroots sports clubs are the beating heart of communities, but rising costs mean too many are now fighting to survive. That’s why we’ve committed £500,000 through our Cash4Clubs programme this year."

Playtech revenue falls

Online gambling technology provider Playtech posted revenue of €387 million in the first half of the year, ten per cent lower than the same period last year.

Adjusted earnings were also down by 16 per cent to €91.6m.

David Brohan, gaming and leisure analyst with stockbrokers Goodbody, said the results were impacted by Playtech's revised agreement with Mexico's Caliente Interactive but added that Playtech's underlying performance was "solid". 

New board member for Flutter

German businessman Stefan Bomhard is set to join the board of Flutter Entertainment as a non-executive director from the start of next month.

Bomhard is due to step down as chief executive of tobacco company Imperial Brands and has held a number of senior positions at companies including Bacardi Limited, Cadbury plc, Diageo plc and Procter & Gamble.  

Flutter's chair John Bryant said: "Stefan has significant experience working in international environments, particularly in the operation, sales and marketing of well-known consumer brands. We look forward to Stefan joining the board and contributing to Flutter's future."

Dates for the diary

Tuesday: The three-day gambling industry event SBC Summit opens in Lisbon. The Racing Post's parent company Spotlight Sports Group will have a stand and visitors will have the chance to take on legendary golf tipster Steve Palmer at darts on Wednesday afternoon.

Read these next:

'There's a lot to be pleased with' - David Armstrong hails racecourse resilience as he looks back on time at RCA 

Europe's €80bn gambling black market shows the unintended consequences of hiking gambling duty - but will the UK government listen? 

'Emotions have been running high' - tensions between racing and bookmakers increase over tax debate  

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