The Chancellor axed a proposed Budget move to increase duty on online racing wagers by 6% after we revealed it would cost 40,000 jobs and wreck the sport of kings
The Daily Star has romped to victory in our campaign to save horseracing after Rachel Reeves’ plan to ramp up betting tax fell at the first.
The Chancellor was forced to scrap her plan to whack up the duty on online racing wagers by 6% after we revealed it would cost 40,000 jobs and risked consigning the 500-year-old sport of kings to the knacker’s yard.
Instead she kept the levy untouched at 15% – putting the racing industry in the Budget winners’ enclosure.
There remains no tax at all on betting at racecourses.
Brant Dunshea, acting chief executive of the British Horseracing Authority said: “Today’s welcome outcome demonstrates that the Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset – culturally, socially and economically – and we welcome this support.
“Betting on racing is an integral part of the enjoyment of our sport and maintaining the rate of horserace betting duties is an important step by the Government to help preserve revenue streams and protect the 85,000 jobs supported by the racing across the country.
“Racing has been part of the British way of life for hundreds of years.
“It binds our communities together in shared experience. It brings joy to millions. It puts the country on the world stage. It is right that the Government has understood this and acted accordingly.”
Authority chairman Lord Charles Allen thanked the Daily Star and ‘everyone who has played their part across the sport standing as one to communicate our message’.
“Following the clarity offered today by Government we look forward to working with ministers and their officials, and the betting industry, to explore how we can continue to grow and promote British racing to a wider audience,” he said.
“The Government has rightly recognised that we are not only a vital part of the fabric of the British way of life but we are also a global leader and one of the country’s most important soft power levers. We want to maintain Britain’s place on the world stage.”
Racecourse Association chief executive David Armstrong said everyone in the sport had been ‘united on the damage that would have been caused should a tax increase be levied’.
“For racecourses we are pleased that the vital socio-economic importance of these venues to communities across Great Britain have been acknowledged,” he said.
Arena Racing Company chief executive Martin Cruddace said: “As a sport and industry we continue to offer a real contribution to this country, supporting communities and culture.
“I am so glad that the Government has recognised that fact and helped put our sport on a path to growth.”
National Trainers Federation chief executive Paul Johnson said he viewed the move ‘with considerable relief’.
“On behalf of British racehorse trainers I welcome the Treasury recognising the economic damage that an increase would have inflicted on the industry and responding to avoid such an outcome,” he said.
“Today’s budget sees us live to fight another day.”
Jockey Club chief executive Jim Mullen said: “We commend both the Government for recognising the unique cultural and economic contribution our sport makes to communities up and down the country.”
Racing chiefs were so worried Reeves planned to hammer the sport they went on strike for the first time in history with jockeys Hollie Doyle, Oisin Murphy and Tom Marquand marching on Westminster.
They feared bookies would slash the odds they offered on horses in a bid to recoup extra cash they faced coughing up to the Treasury on each bet placed.
That meant every punter who backed a winner would not pocket as much money for their skill.
Every race would be hit including the Grand National on which 15m – a third of Britain’s adult population – have a flutter every year.
Not only would it hammer owners, trainers, jockeys, stablehands, courses and bookmakers but also every linked industry from beauticians spray-tanning Ladies’
The Daily Star took up the reins against the planned hike on behalf of legions of readers who feared the Chancellor was about to wreck their fun flutters.
Betting and Gaming Council chief executive officer Grainne Hurst welcomed Reeves’ racing tax hike freeze but warned the Chancellor’s near doubling of remote gaming duty levied on online casinos was a ‘hammer blow’ and could still hurt horseracing.
“Let’s be clear there is no real exemption here for racing,” she said.
“Its income will now be severely damaged as these substantial new tax burdens will inevitably force operators to cut costs, including on marketing, sponsorship and promotions.
“Any threat to betting shops also hits racing’s funding as does a massive expansion of the black market online.
“These excessive online tax increases will undermine jobs, investment and growth across the UK.
“The Government’s Budget is a massive win for the incredibly harmful unsafe, unregulated gambling black market which pays no tax and offers none of the protections that exist in the regulated sector.
“These decisions are bad for jobs, bad for customers, bad for sports and bad for safer gambling.”
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