Plumpton Racecourse Breaks Ranks to Support Levy Reform Plan

The Plumpton Racecourse now stands against much of the UK racing establishment by endorsing a proposal to reform the way UK horse racing is financed. The Sussex venue recently submitted a paper to HM Treasury, backing the Social Market Foundation’s (SMF) plan to increase the Horserace Betting Levy twofold to 20% and lower the general betting duty on racing bets to 5%.

A Rebalancing Could Be an Effective Solution

In its Duty to Differentiate report, the SMF maintains that this change would serve to rebalance the sport’s tenuous financial position while leaving operators’ overall tax burden unaffected. As it stands, bookmakers pay a 10% Horserace Betting Levy, augmented by a 15% general betting duty. The proposal redistributes these numbers more toward the Levy, which supports prize money, breeding, and industry infrastructure.

Currently, the Levy brings in about £100 million ($134.4 million) per year. According to the SMF, the changes could yield a further £100 million a year, potentially doubling Britain’s current prize money pool and restoring some competitiveness with international racing hubs such as France, Japan, and Australia.

Our proposals are not about securing subsidies, but about restoring the principles that underpin the Levy — fairness, reciprocity, and sustainability.

Plumpton Racecourse letter

Plumpton’s submission, titled Securing Racing’s Future, contends that the SMF plan represents a fair and sustainable rebalancing, rather than a subsidy. The racecourse cites declining returns for owners, standing at a negative 74% in 2019, as evidence that the existing system is no longer viable. As owners begin to withhold investment and horses are moved abroad, the paper warns that the sport may enter a downward spiral.

UK Horse Racing Is in Dire Need of Reform

The timing of Plumpton’s actions is notable. It comes shortly after an unprecedented nationwide shutdown of all UK racing fixtures, as a coordinated protest by racecourses and industry leaders rallied against what they believe to be overtaxation by the Treasury. Yet while the broader sector fights for tax relief, Plumpton has broken ranks by advocating for a targeted redistribution.

Plumpton’s management team believes the reform would deliver long-term stability by ensuring that betting activity on racing more directly supports the sport itself. The document also notes that other countries that allowed their racing sectors to decline, with Italy being a prime example, have struggled to revive them. Plumpton warns that a similar fate could befall the UK should it fail to act.

Without reform, British racing faces continued decline: a shrinking horse population, reduced investment, job losses, and the erosion of its global standing.

Plumpton Racecourse letter

The SMF proposition has created a divide within the industry. Some operators see the Levy increase as a stealth tax, while others have endorsed similar ideas, though on a smaller scale. Plumpton’s position aligns with a growing understanding that the future of British racing depends on structural change. What form that might take, however, remains up for debate.