Fears tax proposal could hit home of horse racing

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

There are fears a proposed betting tax hike could damage the historic home of horse racing.

The government is proposing to increase the 15% tax rate paid on horse racing bets, aligning it with online gambling and casinos, which are currently taxed at 21%.

People in Newmarket, Suffolk, which has a long association with the sport, feared this could negatively impact the town and result in fewer people working in the industry.

A spokesperson for the Treasury said the UK's gambling tax system was "outdated and inconsistent".

Research from the British Horseracing Authority warned the tax hike could cost the sport £330m over five years and threaten 2,752 jobs in the first year.

Horse racing is the second-biggest spectator sport in Britain behind football, and it was feared the hike would lead to less promotion and sponsorship of the sport, worse odds and reduced bonuses for customers, ultimately making it less attractive.

Stuart Williams feared the entire racing industry would suffer from any tax changes

Stuart Williams is a Newmarket horse trainer and felt the tax increase was a "real threat".

He argued that since casino slot machines were often made in other countries, there was no large industry behind its operation.

"The horseracing industry is a huge industry, a world-leading industry that creates inward investment for this country, millions and millions of pounds worth of investment and creates a huge amount of work for the rural economy," he added.

Steve Elsom and Vicky Snell feared the impact the tax hike could have on Newmarket as a whole

Steve Elsom, chair of Love Newmarket Business Improvement District (BID), said the wider Newmarket business economy could similarly feel the effects of the tax increase on bookmakers.

"If bookmakers decide they are going to spend less of their revenue in racing, that will have an obvious effect on towns like Newmarket," he said.

"There are half a dozen bookmaker premises in town, but more broadly they spend a lot of money in and around the horse racing sport.

"Horse racing is the second most-watched sport in the UK, but gets very little column inches.

"So any diminution of money going into racing will have an adverse impact."

'Make it harder'

Vicky Snell, who owns Victor Victoria Coffee in Newmarket, said she saw an increase in business during race meets.

"I think it will change the landscape," she said.

"Stables will probably have to cut their work staff, which means less people coming in on a daily basis, so it's not all about the racing.

"I think it will make it harder within Newmarket."

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

A Treasury spokesperson said: "The UK's gambling tax system is outdated and inconsistent, which is why we are consulting on how to level the playing field so all online gambling pays the same rate, working closely with the horse racing sector."

The Treasury added there were no plans to change the ways bets are made at racecourses, which are exempt from any tax.