RICHMOND MP Rishi Sunak has urged the Government to introduce a fair levy on betting companies to support the grassroots of the horse racing industry.
Mr Sunak, whose constituency is host to many of the country’s leading racing trainers, said a new version of the Horserace Betting Levy must generate the money needed to support trainers, jockeys and racecourses.
The Government has promised to introduce a revised levy mechanism by April next year to compensate for the loss of revenue caused by the growth of offshore remote gambling operations.
The current betting levy, introduced in 1963, charges a 10.75 per cent tax on profits generated from bets placed through the UK’s network of 7,000 traditional bookmakers’ shops, but it does not cover the increasing share of gambling carried out through offshore-based websites.
The loophole covers 40 per cent of online bets placed, the racing industry has said.
The tax revenue flowing to the horseracing industry from bookies’ shops has decreased in recent years as bookmakers increasingly shift their activity online. The levy raised £60m in 2014/15, down from £97m a decade earlier.
In a letter to Karen Bradley, the Secretary of State for Culture, Media and Sport, Mr Sunak urges her adopt the levy mechanism proposed by industry body British Racing. This suggests that instead of basing the levy purely on gross profit, betting turnover is factored into the calculation.
He adds that restoring the yield from the levy to £100m would help sustain the racing industry through difficult times.
“Sadly, many racecourses are under threat of closure and the majority of jockeys and trainers struggle financially,” he writes.
In his letter Mr Sunak also emphasises the importance of the racing industry to rural communities. Restoration of the levy to its previous value would allow the industry to encourage more young people to get involved in the sport through apprenticeships and education and boost its plans to fund research in veterinary science.
While almost two dozen trainers are based in and around Middleham, Mr Sunak makes the additional point that the UK racing industry as a whole supports 20,000 jobs and the country’s 59 racecourses generate £3.45bn in expenditure and contribute £300m in taxation.