Newbury Racecourse posts another loss as Labour readies racing tax raid

Newbury Racecourse slumped to loss in the first half of the year as higher labour costs and bumper race prize pots weighed on its recovery.

Newbury blamed increases in the National Living Wage and employer national insurance contributions, as well as revenues paid out in prizes, which are expected to exceed £7million this year compared with under £6.9million in 2024.

And Newbury’s chairman Dominic Burke warned of the ‘potential impact that any changes to betting related tax rates could have on our racing business revenues’.

It comes as the Government weighs hiking the tax charged on sports betting from their current level of 15 per cent to bring it in line with levies on casinos and slots of 21 per cent.

The proposals saw British horse racing go on strike for the first time in its modern history on Wednesday as the Axe The Racing Tax campaign saw fixtures across the country rearranged by the British Horseracing Authority.

The Racehorse Owners Association claims the damage to the rural economy caused by the hike could ‘threaten’ 85,000 jobs and the £300million in tax revenues that British racing contributes.

Axe The Racing Tax: Campaigners and jockeys took to Parliament Square to demonstrate the industry’s opposition to proposed betting tax changes

It also says ‘canny’ betting operators will look to squeeze existing sports betting margins, which ‘would likely increase the move to black market operators, producing damaging consequences for both revenues and the safety of punters’.

Berkshire-based Newbury Racecourse, which was established in 1905, posted a loss before interest and tax of £277,000 for the first six months of 2025 on Friday.

That was down from a £860,000 operating profit for 2024, but an improvement on a £352,000 loss in the first half of last year.

Newbury Racecourse saw statutory turnover increase by 4 per cent to just under £9.7million in the first half, as race day attendance soared 22 per cent to 53,569 punters.

However, the business is increasingly looking to alternative sources of revenue away from the race circuit.

It told shareholders: ‘Our non-racing businesses continue to be of significant focus as we seek to broaden our trading activities, particularly in response to any changes in taxation which could potentially impact our core racing business.

‘The Lodge Hotel, The Rocking Horse Nursery and our overall Conference & Events businesses are all generating revenue, to the half year, ahead of the comparable period last year.’

Burke added: ‘Trading for the first half of 2025 is marginally ahead of our expectations.

‘Our revenues have grown across the majority of our income streams, but due to the impact of high inflationary costs, the increase in the National Living Wage and National Insurance contributions as well as our continued commitment to prize money, the company has only been able to reduce losses compared to the same period last year.

‘We remain confident in the delivery of a positive financial outturn for 2025, but, looking ahead, are mindful of the potential impact that any changes to betting related tax rates could have on our racing business revenues.’

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