MPs demand horseracing to be protected from “sky-high tax rises” in Labour’s Budget

MPs have called on the government to protect the UK horseracing industry from “egregious” tax rises ahead of the Budget being announced on Wednesday 30 October.

Labour’s fiscal plans, which will be delivered by Chancellor of the Exchequer Rachel Reeves, could include significant tax hikes for the betting and gaming industry, according to reports.

The Guardian had claimed the Treasury was considering proposals from think tanks, including the Institute for Public Policy Research, which suggested increasing online casino tax from 21% to 50%.

The same think tank also suggested a rise in general betting duty from 15% to 30%.

Reeves is looking to plug a reported £22bn “black hole” in the country’s finances, in what will be the first Labour Budget since the late Alistair Darling delivered his in 2010.

The report sent UK-listed firms’ shares slumping, although the Culture Secretary Lisa Nandy did tell MPs “not to believe everything” they read during a departmental oral question session in parliament this month.

Last week, during a Westminster Hall debate on the horseracing industry, several MPs took the opportunity to implore Labour to protect the sector against tax hikes.

The debate, which was secured by Conservative MP Nick Timothy, saw MPs raise their concerns and champion the sector, as they called on DCMS minister Stephanie Peacock to commit to protecting horseracing.

Here, EGR details the key comments and contributions from the session ahead of Wednesday’s Budget.

Sarah Dyke, Liberal Democrat MP for Glastonbury and Somerton (Wincanton Racecourse’s constituency)

“I urge the government to work with the horseracing industry to introduce real safeguards and guardrails that support the progress that the industry has already made, such as the Betting and Gaming Council’s new voluntary code on consumer checks. 

“The priority must always be to protect problem gamblers from being exploited by predatory gambling companies, rather than saddling the horseracing industry with tax rises to fix the financial mess left behind by the previous Conservative government.”

Lincoln Jopp, Conservative MP for Spelthorne (Kempton Park Racecourse’s constituency)

“British horseracing, having led the world from its inception, is in danger of falling behind the leading group internationally. Where horseracing fails, it fails fast and the government want no piece of that.

“Enough of the stick – what about a bit of carrot? The minister [Peacock] has a huge opportunity to be the jockey who rides in a winner, generating growth and prosperity for our nation. With a swift and judicious settlement of the levy and protection from egregious taxation and regulation, the minister will lead a late run on the stand rail. Glory awaits; I hope she achieves it.

Jack Rankin, Conservative MP for Windsor (Windsor Racecourse’s constituency)

“I hope the Chancellor will carefully consider introducing further punitive taxes on the gambling sector in next week’s Budget because that would further squeeze the horseracing industry. 

“And given that the Labour Party made growth its priority, I hope that this government will be forthright in their support of British horseracing – an industry that plays a vital role in my local economy and in generating this country’s unrivalled soft power.”

Louie French, Conservative MP for Old Bexley and Sidcup, and shadow gambling minister

“What support will the minister and her department be offering to the horseracing industry, financial or otherwise, and will she help to negotiate the new level at which the horserace betting levy is to be set? Will she bring forward some of the reforms set out in the gambling white paper, which will help to level the playing field and promote growth in the sector? 

“What conversations has she had with government colleagues to make sure that the sport is not damaged by sky-high tax rises in the upcoming Budget? What measures is she taking with industry to stop the growth of the black market, and to make sure that punters can continue to have a flutter freely and safely? What support is she offering horseracing to help grassroots development, equine research and participation in the sport?

“I urge the government, after a slow start, to leave the stalls, gallop into action as if they were Kauto Star cruising up the Cheltenham Hill and give British horseracing the certainty and future it deserves to remain internationally competitive.”

Stephanie Peacock, DCMS minister

“The government remain committed to supporting British horseracing. We believe it is vital to our economy, and it brings joy to many people.

“I know the gambling minister [Baroness Twycross] will look forward to continuing to engage with stakeholders in this area. This debate has highlighted the huge benefit that racing has for communities up and down the country.”

In response to Timothy’s question on ruling out tax increases, Peacock said: “On the honourable gentleman’s fifth question, he might be new to this place, but he is an experienced and seasoned actor or character – I am trying to be diplomatic – in the Westminster and Whitehall world. 

“He tempts me, but he knows that I cannot comment on plans for the upcoming Budget.”