Protecting Horseracing and Rural Communities from Gambling Tax Reform Risks

As the MP for Newbury, I’m proud to represent a constituency with a rich horseracing heritage. From Lambourn’s world-class training yards to the racecourse in Newbury itself, racing is not just a sport here, it’s a vital part of our rural economy and cultural life.

That’s why I’m deeply concerned about the Government’s proposals to harmonise remote gambling tax rates, which would see the rate on betting on horseracing rise from 15% to 21%. While there is a clear and justified case for increasing taxes on online casino-style games, which are strongly linked to gambling-related harm, horseracing is a very different proposition.

I am not convinced by the Government’s one-size-fits-all approach and I have written to the Chancellor urging her to reconsider it. We support doubling the remote gaming duty for high-risk casino-style gambling to raise vital funds for the NHS and social care and to help tackle gambling harm. But betting on racing should not be swept up in this. In my view, the Government should be disincentivising the most harmful forms of gambling where the outcome depends purely on chance, but their proposal does the opposite of this and punishes horseracing in the process.  My Liberal Democrat colleagues and I believe that ministers should instead be seeking to increase the remote gaming duty to 42% while continuing to tax horseracing bets at 15%.

Racing already receives less than 3% of the £13 billion staked on it each year through the Horserace Betting Levy, far less than countries like France and Ireland. And instead of setting out a clear plan to reinvest in the sport, the Government has missed its own deadline to review the Levy, creating more uncertainty for racing and rural economies alike.

Without proper safeguards or reinvestment, a tax hike like this could do real harm to the sport. It would put jobs, training, and local economies at risk, including many right here in West Berkshire.

The Liberal Democrats would maintain a separate tax rate for betting on racing and are calling on the Government to urgently explain how it plans to mitigate the risks to the industry. Any changes to gambling taxation must go hand in hand with a stronger, fairer system for reinvestment into horseracing. That includes ensuring affordability checks are evidence-led and proportionate, protecting vulnerable individuals without pushing responsible bettors away from the sport.

I am currently trying to secure a Westminster Hall debate on how the industry can be better supported, and through my membership of the All Party Parliamentary Group for Racing and Bloodstock, I plan to keep pressure on the Government to recognise the importance of the sector.

British racing is a major employer and a proud part of our national identity. It deserves more than vague promises and missed deadlines. I will continue to speak up for the racing community in Newbury and across the country.

The Government must wake up to the growing financial pressures facing this vital sector, and we Liberal Democrats will hold their feet to the fire to ensure horseracing, and the communities it supports, are not left behind.