BHA Appeals to Chancellor to Scrap Racing Tax Proposal
Unified Support Against Racing Tax
The British Horseracing Authority (BHA) has revealed that the entire horseracing sector stands united in support of the campaign to eliminate the proposed racing tax. Through an open letter addressed to the Chancellor of the Exchequer, industry leaders voiced their deep concerns about a government plan to standardize gambling taxes across all gaming sectors.
Concerns Over Remote Betting & Gaming Duty
The BHA’s letter highlights significant worries regarding the introduction of a single Remote Betting & Gaming Duty (RBGD) that would apply uniformly to all forms of gambling. Endorsed by 363 key figures from the racing world, the letter warns that this tax overhaul could seriously jeopardize horseracing, which ranks as Britain’s second most popular sport.
Signatories expressed that adopting a unified tax rate threatens to cause grave and permanent harm to the sport, potentially impacting the livelihoods of countless individuals connected to horseracing.
They also stressed the sport’s integral role in British culture and regional economies, citing that horseracing currently contributes around £4.1 billion to the national economy, supports approximately 85,000 jobs, and generates £300 million in tax revenues annually.
Economic and Social Impact of Increased Taxes
Beyond its economic contributions, horseracing promotes investment across various urban and rural regions in the UK. The industry also boosts tourism and underpins a wide network of supply chains and small enterprises nationwide.
Moreover, horseracing fosters a strong sense of community identity and inclusivity among people from diverse backgrounds, playing a vital role in social cohesion and personal transformation.
However, the industry warns that the Treasury’s proposal to tax horseracing bets at rates equal to other gambling forms could destabilize its financial health. This would likely reduce bookmaker support for the sport, diminish revenue from betting levies, and endanger the future sustainability of horseracing.
Projected Financial Losses and Job Impact
Analyses referenced in the letter predict that harmonizing taxes at 21% would result in a £66 million loss for the sector. Such a financial hit could force widescale job cuts, lessen investments, and weaken the broader ecosystem dependent on horseracing.
More dramatically, a potential 40% tax rate could cost the industry over £160 million annually and lead to the immediate loss of around 2,000 direct jobs within the first year of its introduction.
The letter concludes by emphasizing that these government proposals risk devastating a significant British industry and harming rural communities, urging policymakers to reconsider their approach while there is still time.
The Wider Gambling Industry’s Pushback
This appeal from the horseracing sector comes amid a broader industry effort to oppose other proposed gambling tax increases that could also have substantial economic ramifications.
