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British Horseracing plans unprecedented protest against government tax proposals

The British Horseracing Authority (BHA) has confirmed that no race meetings will take place in Britain on Wednesday, September 10, as the industry makes a high-profile stand against the UK government’s tax proposals. 

The ruling Labour administration has proposed introducing a unified single rate for online betting duties, but the BHA insists this would create “devastating consequences” for horse racing, which is attended by approximately five million people per year and supports 85,000 jobs across the country.

Due to the proposed tax hike, British Racing is stepping up plans for its ‘Axe the Racing Tax’ campaign, ahead of the UK Chancellor’s Autumn Budget. This includes the unprecedented decision not to hold any race meetings on September 10. 

In the UK, horse racing takes place almost every day of the year, so this action will make a big statement. Apart from inclement weather, equine virus, or national emergencies (such as the Covid-19 pandemic), this will be the first time in modern history that no races will take place on a ‘normal day’, due to the protests against the government’s plans.

The planned horse racing meetings on September 10 at Lingfield Park, Carlisle, Uttoxeter, and Kempton Park will now be rescheduled, with the action complemented by a large-scale demo at Westminster, taking the protests to the heart of British government. 

Senior industry figures will be joined by horse owners, trainers, jockeys, and other enthusiasts to underline their opposition to the proposed tax hikes, on an industry said to be worth £4.1 billion ($5.6 billion) to the UK economy. 

Tax rise on racing could be catastrophic

Brant Dunshea, Chief Executive of the British Horseracing Authority, explained the rationale for the unprecedented protest action and why it matters so much.

“British Racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country,” he said.

“This is the first time that British Racing has chosen not to race due to Government proposals. We haven’t taken this decision lightly but in doing so, we are urging the Government to rethink this tax proposal to protect the future of our sport, which is a cherished part of Britain’s heritage and culture.” 

Betting and Gaming Council opposes race cancellations

Economic research commissioned by the BHA has indicated that aligning the existing 15% tax on British horseracing paid by bookmakers with the 21% tax on online games of chance could lead to a £330 million ($447 million) revenue black hole for the racing industry over the first five years of the policy.

This is because betting operators would likely aim to offset the impact of tax rises by increasing prices, reducing bonuses, as well as trimming advertising spending. 

It has also been predicted that 2,752 jobs could be threatened in the first year of the policy, due to expected cuts.

This is because betting operators are likely to seek to offset any tax rises through increasing prices, cutting bonuses, and reducing advertising and marketing budgets.

The UK Betting and Gaming Council (BGC), which recently blasted proposals to hike gambling taxes, has commented to question the decision to postpone the race meetings, as well as the lack of consultation with betting operators. 

The council struck a conciliatory tone, expressing its concern that “futile political gestures will only antagonise the Government and frustrate punters instead of delivering a solution to a shared challenge facing both racing and betting.” 

It stated its commitment to working with the racing industry “constructively” to prevent any further tax increases, while defending its own position and significant contribution to the UK economy.

Image credit: BHA

The post British Horseracing plans unprecedented protest against government tax proposals appeared first on ReadWrite.

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