海角大神 (BHA) is today urging the sport to collectively lobby the Government to back British racing and axe the Treasury鈥檚 proposal to hike tax on horserace betting by bringing existing online betting duties into one single rate.
The call comes ahead of the launch of 鈥楢xe the Racing Tax鈥�, a BHA-led public campaign against the proposal which will be rolled out over the summer.
A tax hike for bookmakers in the Autumn Budget would be the third leg of a triple whammy of financial threats caused by Government policies which jeopardise the future of the sport in Britain.
Economic analysis commissioned by the BHA shows that aligning the current 15% tax rate paid by bookmakers on racing with that of online games of chance 鈥� currently taxed at 21% – by harmonising all remote gambling duties, could hit racing鈥檚 finances to the tune of聽拢66m in lost income聽via the Levy, media rights and sponsorship. This is because operators are likely to seek to mitigate significant tax rises through cutting bonuses, reducing advertising and marketing budgets and increasing prices.
Should the Treasury seek to raise the proposed single duty rate further to help balance the books, the impact on racing鈥檚 finances would be devastating, with a projected 拢97m loss at a tax rate of 25%, a 拢126m loss at 30% and a 拢160m loss at 40%.
This would put thousands of jobs at risk and severely impact towns and rural communities across the country. It would also hamper British racing鈥檚 world-leading work on equine welfare.
It is why the BHA is today asking everyone involved in the sport to play their part in urging the Government to axe the racing tax by writing to their local MP to call on Ministers to urgently rethink proposals.
Separately, the sport will be formally responding to the Treasury鈥檚 consultation on the proposals which closes on 21聽July. The Treasury will consider its options ahead of the Budget this Autumn.
The BHA has also welcomed this week鈥檚 commitment by Treasury Minister James Murray MP to work with the horseracing industry to avoid unintended consequences arising from the proposals and to seek mitigations.
The Treasury鈥檚 proposals come at a time when damaging affordability checks, which are already restricting people who enjoy a flutter on the horses, and a failure to deliver a more sustainable central funding model mean that the sport faces a deeply uncertain future.
The BHA鈥檚 rallying cry follows the publication of a hard-hitting report by the All-Party Group for Racing and Bloodstock demanding that the Government act quickly to secure the future of a treasured national institution that is loved by millions of people across the country.
Brant Dunshea, Acting Chief Executive of the British Horseracing Authority, said:
鈥淚t is vital that everyone working in racing, the media and bettors fully support and promote this campaign.
鈥淭he Government鈥檚 consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen.
鈥淚t will punch a huge hole in racing鈥檚 finances, risk thousands of jobs across Britain and threaten the future of the country鈥檚 second most-popular sport and a cherished national institution.
鈥淔rom now until the Budget we will be hammering home a very simple message to MPs, Peers and the Government on behalf of millions of racing fans. It鈥檚 time for the Government to back British racing and axe the racing tax.鈥�
HM Treasury鈥檚 proposals on remote gambling duties can be accessed .
