“Securing Racing’s Future”

Attached is a copy of Plumpton Racecourse's report “Securing Racing’s Future”, which was sent to HM Treasury, setting out proposals for redistribution of the Horserace Betting Levy. The report builds on analysis by the Social Market Foundation (SMF) and makes the case for a reallocation of how betting tax is distributed between the Treasury and the Levy.

British racing underpins 85,000 jobs, contributes £4 billion to the economy, and pays over £300 million in tax every year — yet all of this is under threat because prize money in Britain has become so internationally uncompetitive. At just £188 million annually, Britain’s prize money is dwarfed by rival jurisdictions, making ownership in Britain increasingly unviable. To remain competitive, prize money needs to at least double, and these proposals would deliver around £130 million in additional funding to the sport, without adding to the fiscal costs on horserace betting for operators. Furthermore, betting operators should be supportive of this proposal, as a more robust racing industry strengthens their betting product. Importantly, the scope of this report does not prescribe how the Treasury should fund the shift — only that the redistribution must be done if racing is to survive and flourish.

Momentum for reform is building across Westminster. 101 MPs have already signed an open letter which backs the SMF’s plan for Levy reallocation. Former Prime Minister Gordon Brown and sitting MPs including Alex Ballinger have also echoed calls for change.

Tom Savill, Director, said “I’ve spoken to many horsemen up and down the country, and the picture is stark. One trainer told me that at the end of every month, he and his wife are left wondering whether they can even afford to pay themselves. That is the reality of training in Britain today. It is no surprise, that so many of their fellow horsemen are leaving for countries where the economics make far more sense. The situation is only going to worsen with a massively reducing foal crop. Unless something changes soon, many more will follow.”

Dr James Noyes, Senior Fellow at the Social Market Foundation, said “British racing is facing an existential threat. The government’s current tax consultation risks accelerating the demise of a vital part of the British economy, society and culture. The Social Market Foundation’s proposal to increase much needed Levy funds should provide the sport, and the jobs and communities which depend on racing, with a lifeline and hope for a sustainable future”.

Plumpton Racecourse is calling for Government to act decisively. “Securing Racing’s Future” sets out proposals based on the principles of fairness, reciprocity and sustainability — ensuring British racing not only survives, but has the means to thrive in a global and competitive environment.

For further enquiries, please contact Tom Savill, Director at Plumpton Racecourse. Email address: tom@plumptonracecourse.co.uk

Read the report here