Racing avoids betting tax rises in Budget

British racing has been spared from a tax rise on betting on the sport which it feared could lead to thousands of job losses.

In her Budget, Chancellor Rachel Reeves did not increase the rate paid by bookmakers on racing bets.

Reports of a proposed rise had led to British racing holding an unprecedented one-day strike in September.

But, although the Treasury has not increased the 15% tax rate paid by bookmakers on racing, other gambling tax rises could have a knock-on effect for the sport.

Remote gaming duty, paid on online casino betting, will rise from 21 to 40% from April 2026.

General betting duty, paid on other forms of sports betting, will remain at 15% in betting shops - but from April 2027, will rise from 15 to 25% online.

Welcoming the exemption, British Horseracing Authority (BHA) acting chief executive Brant Dunshea told the BBC: "We have seen the power of our industry speaking with one voice."

He added: "The Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset - culturally, socially and economically - and we welcome this support.

"We recognise that the increase in general taxation on the betting industry may have trickle-down effects on racing. We will work with our partners in the betting industry to understand the implications of this."

Details of the government's plans were mistakenly released early by the Office for Budget Responsibility before Reeves' statement in the House of Commons.

The measures are expected to generate £1.1bn from the gambling industry by 2031 and shares in major companies fell immediately after the announcement, although some recovered later.

Before the Budget, bookmakers warned of betting shop closures if Reeves hiked taxes on gambling firms.

Each shop provides thousands of pounds in funding to racing through the levy and media rights payments.

Racing's bosses say if bookmakers needed to cut costs, this could impact the sport through reduced sponsorship and promotion, worse odds and reduced bonuses for customers, and potentially turn people towards the black market.

An additional £26m of funding will be provided by the government to the Gambling Commission over the next three years to tackle the illicit market.

Horse racing is the second-biggest spectator sport in Britain, behind football, with more than 1,400 fixtures a year.

As part of its industry-wide Axe The Racing Tax campaign, four fixtures scheduled for a day in August at Lingfield Park, Carlisle, Uttoxeter and Kempton Park were rearranged by the BHA.

It was the first time the sport has voluntarily refused to race in its modern history, with leading jockeys, trainers and owners descending on Westminster to lobby MPs and show their opposition to possible changes.

The governing body was campaigning against the possibility of the Treasury introducing a single remote gambling tax, which would have increased the 15% tax rate paid by bookmakers on racing and aligning it with online gaming, which was taxed at 21%.

The BHA said that proposal - which has not been brought in - would have a "destructive impact" on the industry with its economic analysis predicting an estimated £330m loss in revenue and putting 2,752 jobs at risk in the first year alone.