The British horseracing industry has recently taken unprecedented action by announcing a voluntary suspension day on September 10th to protest against the government's proposed new unified remote betting duty (RBGD). This initiative, organized by the British Horseracing Authority (BHA), aims to send a clear message to the Treasury: the new tax regime would severely threaten the survival of the horseracing industry and the international competitiveness of British horseracing. It is estimated that this strike day will result in a direct loss of about £200,000 to the sport.
This move has received public support from some Conservative and opposition MPs. Nick Timothy, MP for West Suffolk, pointed out that the "horseracing tax" would penalize horse owners, trainers, and jockeys, endangering not only the horseracing industry but also the breeding of racehorses. He emphasized that the government should seek alternatives rather than putting this successful British industry in jeopardy. Shadow Sports Minister Louis French also stated that the cancellation of racing activities highlights the urgency for the government to immediately withdraw the proposed tax reform.
Senior figures within the horseracing industry, including Martin Cruddace, CEO of Arena Racing Company, Baroness Harding, Senior Steward of The Jockey Club, Louise Norman, CEO of the Racehorse Owners Association, and renowned trainer John Gosden, have all expressed their support. They believe that although striking is a last resort, the government must understand that if the tax reform is implemented, the horseracing industry will face an irreversible decline.
The Treasury plans to unify the existing three types of taxes—remote betting duty (21%), general betting duty (ranging from 10%-15%), and pool betting duty (15%)—into a new remote betting and gaming duty. The British Horseracing Association warns that if the tax reform is implemented, it could lead to a revenue loss of £330 million in the first five years, with 2,752 jobs at risk in the first year alone. For example, in Yorkshire alone, the economic loss from just nine racecourses could amount to £37 million, affecting hundreds of jobs from trainers and stable staff to local catering and hotel industries.
The Horseracing Betting Strategy Committee played a crucial role in the decision-making for this strike day. The committee consists of the BHA, Racecourse Association, Racehorse Owners Association, The Jockey Club, Arena Racing Company, and the National Trainers Federation. The Betting and Gaming Council expressed concerns about the government's failure to consult, fearing that the strike could lead to dissatisfaction among bettors.
David Armstrong, CEO of the Racecourse Association, stated: "The horseracing industry has taken this action to make a stand. We understand that the strike will affect employees and the betting-related industries, but it is an indispensable means to convey information to the government and protect the horseracing industry."
This strike and the political support it has garnered mark a historic move by the British horseracing community to safeguard its interests, while also highlighting the profound impact the proposed tax reform could have on the industry and local economies.
