'Tax hike could cripple horse racing industry'

Horse trainer for royalty, William Haggas, wants the government to "leave racing alone"

Racehorse trainers across the East of England fear any betting tax hike could prove "crippling" for the industry if introduced.

The British horseracing industry has gone on strike on Wednesday as a protest against the government's proposed 21% tax rate for horseracing bets.

Its current rate is 15%, but Labour is considering increasing the charge to mirror that imposed on online gambling and casinos, where the 21% rate already applies.

The government said it was "working with the industry to understand any potential impacts", but trainers and horse owners say those could be "devastating".

'We need to protect horseracing'

Renowned trainer William Haggas, based at Somerville Lodge stables in the "Home of Horseracing" that is Newmarket in Suffolk, said ministers should "leave racing alone".

"They need to put the duty up for casinos and support racing, because it is a big contributor to the Treasury," he said.

"It could be pretty dire [if the rate is increased] and we will be in serious difficulty. It is a huge industry and it has been here forever, so we need to protect it, not destroy [it]."

Jockeys, trainers and owners have all headed to Westminster to lobby MPs and four race meetings have been rescheduled.

The British Horseracing Authority previously warned that its research into the potential tax hike could cost the sport £330m over five years and threaten nearly 3,000 jobs in the first year.

Jockeys, trainers and owners are protesting in London against the proposed new 21% betting tax rate

One of the trainers who headed to London for the demonstration is Stuart Williams, who is also based in Newmarket, which calls itself "The Home of Horseracing".

"We are trying to discourage the government putting racing in the same boat as online casinos," he said.

"[If the increase is brought in], the bookmakers will adjust their terms to get their profits back, which will make your £5 worth less when you bet with it."

Terry Albone, from Hemsby in Norfolk, has been in the industry for 60 years, starting out as a jockey before becoming a trainer.

"The government needs to try and help the industry instead of crippling it – it would be better if they dropped the tax rather than increase it," he said.

"If things do not improve a lot of small trainers will have to pack up because they just will not be able to afford to keep going.

"It will cause a lot of jobs to be lost and a loss of money."

'Racing could wither'

Horseracing is the second-biggest spectator sport in Britain behind football, and it has been claimed the tax increase could lead to less promotion and sponsorship.

There has also been a worry that the betting odds would be less desirable, resulting in fewer bets being placed and prize money for winners taking a huge hit.

Another Newmarket trainer, John Berry, said: "Directly and immediately there would be no impact, because British racing gets a miniscule percentage return from betting.

"But the worry is if that the money flowing back to racing will be a lot less – and the projections that have been put forward are quite frightening.

"Racing is such a big part of the national fabric and society, and you hope Newmarket Racecourses will be fine, but you can't take that for granted.

"The whole game could suffer, and we are worried racing might wither."

Chancellor Rachel Reeves has said suggestions of a proposed tax rise are speculation and irresponsible

Dan Tomlinson MP, Exchequer Secretary to the Treasury, said the government had not announced any increase on the tax rate faced by bookmakers.

"The chancellor has been clear that speculation on tax rises, which is what this is, is not only inaccurate, but also irresponsible," he said.

"The racecourse betting currently gets a 100% tax break which we have no plans to change - it's the only sector that benefits from a government-mandated levy.

"Our wider gambling consultation is about levelling the playing field and simplifying the system."

The Chancellor of the Exchequer, Rachel Reeves, is due to deliver her next Budget on 26 November.