Tax Rise Strike Scheduled for 10 September as Racing Fears for Its Future

The horse racing industry in Britain is set to go on strike on 10 September, with all scheduled racing events cancelled in protest against the government’s proposed increase in betting tax. The move, agreed upon by key stakeholders including Jockey Club Racecourses, Arena Racing Company, and the British Horseracing Authority, aims to highlight the potential devastating impact of the Treasury’s plans on the sport.

The proposed tax increase would see the duty on betting, currently set at 15%, aligned with the rate for games of pure chance, such as roulette and online slot machines, which is taxed at 21%. This, combined with an additional 10% charge on bets for the statutory Levy, has sparked concerns that the sport will become less attractive to gamblers, ultimately leading to significant financial losses.

Industry leaders are adamant that the government’s proposal will have far-reaching consequences, with the potential loss of jobs and the future of the sport hanging in the balance. Brant Dunshea, acting chief executive of the British Horseracing Authority, said that the industry is “united in its opposition” to the Treasury’s plans, warning that the proposed tax increase will be a “tax bombshell” that will jeopardize the future of Britain’s second-largest spectator sport.

According to the British Horseracing Authority, the industry generates £2.4 billion in annual revenue, with a significant portion coming from betting. The proposed tax increase is expected to result in a loss of around £700,000 to the industry, with the cancelled events being added to other cards scheduled around the same time.

The date of the strike, 10 September, is significant as it falls just a day before the high-profile St Leger meeting at Doncaster, which was attended by Prime Minister Sir Keir Starmer and his wife last year. The St Leger meeting is one of the most prestigious events in the British horse racing calendar, and its cancellation due to the strike would be a major blow to the sport.

The proposed tax increase has also sparked debate among industry experts and thinktanks. The Social Market Foundation, a thinktank, has suggested an alternative proposal that would see the duty on gaming products increased to 50%, while the duty on sports betting would be reduced to 25%. This proposal would aim to ensure that the racing industry does not lose out, while also addressing concerns about the tax treatment of gaming products.

The government’s plans to increase betting tax have been met with opposition from various quarters, including the former Prime Minister, Gordon Brown. Brown has advocated for a significant rise in the duty charged on fixed-margin gaming products, which he believes would help to reduce the appeal of such products to gamblers.

As the strike looms, the British horse racing industry is bracing itself for the potential consequences of the government’s proposed tax increase. With the future of the sport hanging in the balance, industry leaders are urging the government to reconsider its plans and work with the industry to find a solution that benefits both the sport and the taxpayer.