British horseracing on strike – why the industry is fighting against the government

British horseracing has taken the unprecedented step to protest the government’s ‘tax grab’ plans that threaten the future of the sport, with the whole industry downing tools and going on strike

British horseracing will strike on Wednesday for the first time in its modern history.

The entire industry in the UK will down tools in fury against the government’s ‘tax grab’ plans that threatens the future of racing in the country. Rachel Reeves’ attempts to fill a £51billion hole in public finances have seen the Chancellor of the Exchequer propose hiking racing duty from 15 per cent to 21 per cent

In this year’s budget, record tax rises were set out across the board, including in the Treasury for a new racing tax, which the sport’s bosses fear will have dire economic damage on the industry.

Here, the Daily Star Sport explains all about Wednesday’s strike and the reasons why.

Why is there no horse racing in Britain today (Wednesday)?

The racing industry in Britain has taken the unprecedented step to call off all race meetings scheduled today to try to persuade the government not to raise the rate of tax on betting. The ‘Axe The Racing Tax’ campaign is designed to show the sport is united in making sure its message is heard and understood.

What is the ‘Racing Tax’?

The government is proposing a ‘harmonisation’ of online betting taxes which would increase the amount of duty on racing and sports betting from 15 per cent to 21 per cent, bringing it into line with games of chance, such as casinos and slots.

What should happen instead?

The British Horseracing Authority wants the Treasury to scrap the proposed hike and instead consider a separate, lower tax for horse racing given its “huge economic and cultural value” to the country.

What would be the consequences of a rise in tax?

Independent forecasts, commissioned by the BHA, predict a £330 million loss in revenue to racing over five years. Another study suggested more than 2,700 job losses in the first year. It has been claimed betting operators may offset the impact of the rise by offering worse odds to punters, who could be driven away to other products or even to black market bookmakers.

How important is racing?

Horse racing is the second biggest spectator sport in the country with nearly 5 million people attending race meetings every year. It provides direct employment to 85,000 people and has an annual economic impact of £4.1 billion, contributing £300m each in tax revenues.

So what has been done?

The four race meetings originally set to take place on September 10, at Lingfield, Carlisle, Uttoxeter and Kempton, have been moved to alternative days, with the ‘strike’ leaving a blank day in the calendar. A lobbying event will be held in Westminster attended by racing figures including trainers, jockeys and MPs. It is estimated that the action will cost £200,000 in lost revenue.

Will any other racing be shown in betting shops?

Ireland stages a single evening fixture at Cork, which begins at 4.10, while there is international racing from Happy Valley in Hong Kong and Compiegne in France during the day.