Tax hike 'absolutely detrimental' to horse racing

The Treasury is looking to bring existing online betting duties into one single rate

The director of a racecourse in East Sussex has said proposed government changes to gambling taxes would be "absolutely detrimental" to horse racing.

Plumpton Racecourse's Thomas Savill criticised hiking the current 15% levy on online horse racing bets to 21% in November's budget, thereby bringing the sport in line with internet gambling and casinos.

The British Horseracing Authority (BHA) has said the industry, which is supported by gambling, could lose £330m over five years as a result, leading to thousands of redundancies in the first 12 months.

But a spokesperson for the Treasury said no such tax increase had been announced and called speculation on the matter "irresponsible".

Mr Savill said: "Any tax increase on horse racing would be absolutely detrimental to an industry that's really struggling at the moment.

"With less investment there'll be less owners and, as a result, less horses, thereby making the sport less competitive."

He suggested the government instead look at the "pretty much pure profit" world of online casinos as a better way of raising revenue.

Plumpton Racecourse director Thomas Savill said the industry was already struggling

The BHA led a protest of leading jockeys, trainers and owners at Westminster earlier this month in opposition to the proposals.

The protest, which took place amid a one-day British horse-racing strike on 10 September, saw participants brandish the slogan "Axe The Racing Tax".

Meanwhile, there has also been concern that betting odds could become less desirable, resulting in fewer bets placed and winners' prize money taking a hit.

However, with all bets placed onsite to remain tax free, the change would directly affect bookmakers rather than spectators.

Exchequer Secretary to the Treasury, Dan Tomlinson, said: "The chancellor has been clear that speculation on tax rises is not only inaccurate but also irresponsible.

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

"Horseracing is part of our cultural fabric, that's why it's the only sector that benefits from a government-mandated levy.

"Our wider gambling consultation is only about levelling the playing field and simplifying the system, and we are working closely with the industry to understand any potential impacts."