The British Horseracing Authority (BHA) has firmly opposed the government’s proposal to increase the tax on the sport. The authority has urged industry stakeholders to join a collective lobby to reject the proposal.
The UK Is Considering a Higher Tax for Racing
In an official release, the BHA said that it is preparing to launch a public campaign against the recent tax hike suggestion called “Axe the Racing Tax.” The campaign will be rolled out over the summer, seeking public support for the BHA’s crusade against the government’s proposed tax rate.
For context, the proposal outlined in the Autumn Budget would align the tax on racing bets (currently 15%) with the tax on online gambling (currently 21%). This would be yet another blow for an already embattled industry that is facing threats due to Britain’s regulatory shifts.
According to experts, raising the tax on horse racing bets to 21% would deprive the industry of millions of pounds.
By harmonising all remote gambling duties, could hit racing’s finances to the tune of £66m in lost income 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.
BHA statement
The BHA added that a tax rate of 25% would lead to a £97 million loss, while tax rates of 30% or 40% could lead to a loss of £126 million and £160 million, respectively. In any case, these losses would put thousands of jobs at risk and would severely impact rural communities that depend on the racing industry, the BHA warned. It added that a tax hike could hamper Britain’s “world-leading work” on equine welfare.
In addition to the calls for a higher tax, the racing sector faces additional pressures due to the controversial affordability checks.
BHA Rejected the Tax
The BHA firmly rejected the idea of increasing the racing tax and called upon all industry stakeholders to join its efforts to strike down the proposed measure. In addition to that, the sport will issue a formal response to the UK Treasury’s consultation on the proposals, outlining its concerns.
In the meantime, the BHA welcomed a recent commitment by Treasury Minister James Murray MP to work with the industry to prevent unintended consequences for the sport.
Brant Dunshea, BHA’s chief executive, commented on the matter, saying that it is vital for racing industry stakeholders to join the Axe the Racing Tax campaign.
The Government’s consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen. It will punch a huge hole in racing’s finances, risk thousands of jobs across Britain and threaten the future of the country’s second most-popular sport and a cherished national institution.
Brant Dunshea, CEO, BHA
Dunshea added that his team will be “hammering home a very simple message: axe the racing tax.”