The UK Treasury’s exchequer secretary Dan Tomlinson has labelled speculation surrounding tax hike proposals as “inaccurate” and “irresponsible”.
On Thursday, 10 September, all race meetings scheduled for the day were rescheduled because of planned strikes by the British Horseracing Authority (BHA).
The decision was made in August on the back of the closing of the Treasury’s consultation period, in which it looked to bring pools and general betting duty, currently 15%, in line with remote gaming duty at 21%.
In an attempt to force a U-turn from the government, the strikes went ahead at Lingfield Park, Carlisle, Uttoxeter and Kempton in what was the first time in British horseracing history that the sport voluntarily cancelled race meetings.
News publication the Racing Post reacted with a black front page with text calling for its readers to understand why the strike matters, as well as labelling the potential hikes as “catastrophic”.
In response, Tomlinson said in a statement that the gambling consultation was about “simplifying the system” and that no announcement has been made about increasing the horseracing tax.
He said: “The chancellor has been clear that speculation on tax rises, which is what this is, is not only inaccurate, but also irresponsible.
“We have not announced an increase in the tax on horserace betting, and racecourse betting currently gets a 100% tax break which we have no plans to change.
“We know horseracing is part of the cultural fabric of the country, that’s why it’s the only sector that benefits from a government-mandated levy.
“Our wider gambling consultation is only about levelling the playing field and simplifying the system, and we are working closely with the industry to understand any potential impacts.”
As the strikes took place, the Betting and Gaming Council voiced its frustration about the lack of consultation with UK operators.
In a statement, the BGC said: “We are disappointed that racing has chosen to proceed with its decision to reschedule racing fixtures today [10 September].
“While we understand the concerns within the sport, the decision was taken without consultation with betting operators, who make a significant financial contribution to British racing, and it will ultimately disrupt customers who expected to enjoy fixtures today.”
If a tax hike is introduced, research commissioned by the BHA, carried out by Development Economics in July, suggested it could cost its industry roughly £330m over a five-year period and over 2,700 jobs.
In the first five years alone, it is estimated it will cost £66m per year.
Rachel Reeves, Chancellor of the Exchequer, is set to deliver the next budget on 26 November.
The post Government slams tax hike speculation as “irresponsible” amid horseracing strikes first appeared on EGR Intel.
Treasury’s exchequer secretary Dan Tomlinson says no tax increase has been announced following cancelled race meetings on 10 September
The post Government slams tax hike speculation as “irresponsible” amid horseracing strikes first appeared on EGR Intel.