Charlie Parker: Harmonising tax rates will hit finances and jobs

The government has had several recent setbacks regarding its economic policies, and it seems there is a large hole in their budget. Given the latest round of spending reviews has concluded, it is hard to see where significant savings can be made and therefore we will almost certainly see some tax increases.

Gambling could be seen as an easy target, which is deeply concerning for the racing industry given the plan to harmonise the rates, bringing sports, including racing, up to the level of online slots and casino games at 21%. Gambling on racing, like other sports, is currently subject to a lower tax rate at 15% of profits for online bets.

In racing’s response, the unintended consequences were plainly and starkly laid out. The economic consequences will be significant, hitting the sport’s income, with independent modelling  showing that an increased tax rate of 21% will see a £66 million reduction in operator spending, resulting in at least a 6% decline in full-time jobs across the industry. If the rate is increased beyond 21% to say 30%, operator spend could fall by as much as £126m, with 10% of jobs being lost. The impact will be across the board, with fewer horses, owners, trainers and probably racecourses.

There is also the added social and cultural impact given recent polling showed that over half of the population believe that racing is an important part of British culture. Racecourses see around five million visits a year including royal patronage; it is the second best attended sport after football and, crucially, spread across the whole country.

The government must try and balance the books. However, they are first and foremost a political party and rely on voters. A tax policy that impacts local communities, global prestige and crucially jobs is not welcome, and it would be extremely damaging for the present government to target a sport that not only supports these areas but provides a real growth story, both domestically and internationally.

Labour should be looking at ways to encourage investment, not causing catastrophic damage whilst raising a relatively immaterial – in terms of the overall deficit – sum of money, and we must let the government know that. The Treasury consultation has now concluded, but the final decision will not be taken until the release of the autumn statement.

I would urge everyone to write to their MP with their concerns – a template letter is available from the ROA. We have seen in the past how lobbying can be successful so it’s crucial that everyone who cares about our fabulous sport gets behind the campaign.

This period has also presented the ROA with an opportunity to reflect on its activities following a recent owners’ survey, which has yielded plenty of fascinating feedback. Owners answered the call and responded to let us know exactly what they thought about ownership today and the role of the ROA within British racing.

Further details about the survey results are provided within the ROA Forum section (see pages 70-71), highlighting the 60% of owners who currently feel undervalued and unrecognised by the sport, with 40% of respondents wanting to understand better the ROA’s role and responsibilities.

This constructive criticism must be welcomed as it provides an opportunity to listen first- hand to the challenges facing owners as a key stakeholder within British racing. The role we play in this  sport on behalf of owners is critical, and with our Board members acting as member-nominated representatives, we will work hard to drive change and deliver the recognition and rewards owners need.

The ROA will continue to address the challenges being faced by using these crucial insights and data to inform discussions with other stakeholders. Owners have spoken – it’s crucial that the industry listens to what has been said and responds accordingly.

We lost one of British racing’s icons recently, my family’s great friend Barry Hills. Our tribute gives a lovely insight into the man himself, and I know that he will be missed by so many across racing.

It was fantastic to see Richard Hughes train his first Group 1 winner with No Half Measures in the July Cup at Newmarket. The filly was a relatively inexpensive yearling purchase and is owned by Richard Gallagher. Richard, who worked on a stud farm in his early career, owned horses with his father Pat, but the filly ran in his colours, providing a fantastic story of what can be achieved by a relatively small owner taking on the might of the racing superpowers.

For information on how to write to your mp click here: #AxeTheRacingTax | ROA