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Horseracing

24 October 2024

Lead MP

Nick Timothy
West Suffolk
Con

Responding Minister

Stephanie Peacock

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Word Count: 13197
Other Contributors: 13

At a Glance

Nick Timothy raised concerns about horseracing in Westminster Hall. A government minister responded.

Key Requests to Government:

Nick Timothy asks the Government not to revert to previous practices but instead build upon prior agreements with the Department for Culture, Media and Sport. He requests a commitment to increase the betting levy to at least 11.5% to create a growth fund for marketing and promoting British racing. Additionally, he seeks reform of the current levy system to ensure it applies to bets placed on races in Britain and overseas equally. He also wants assurances that there will be no further taxes imposed on bookmakers which could harm the industry.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

West Suffolk
Opened the debate
Nick Timothy is concerned about the precarious future of the British horseracing industry, despite its international success and economic benefits. He mentions that many breeders and trainers operate on tight margins due to lower prize money compared to competitor markets like Australia, Ireland, France, Japan, and the United States. The average prize fund for top-tier races in Britain is £600,000, whereas in Dubai it is £4.5 million and in Australia £2.7 million. Lower down the pyramid, most British races pay less than £5,000 to the winner, compared to higher amounts abroad. Additionally, he notes that betting turnover on British racing has fallen by over £1.5 billion in the past two years and could be as low as £7 billion this year.

Government Response

Stephanie Peacock
Government Response
It is a pleasure to serve under your chairmanship, Sir Edward. I begin by referring to the Register of Members' Financial Interests, having taken part in a charity bet earlier this year and attended Donny races this time last year. I congratulate the hon. Member for West Suffolk (Nick Timothy) on securing this important debate on the future of and support for horseracing. We have heard from hon. Members on both sides of the House, and the shadow Minister did an excellent job of listing all the places, so I will not repeat them. Instead, I will speak about the issue in broad terms before addressing some of the specific points made by the hon. Member for West Suffolk and others. His Majesty's Government recognise the significant contribution that racing makes to British culture and its particular importance to the British economy. Horseracing is a powerhouse industry that supports employment across racecourses, training yards, breeding operations and related sectors, worth more than £4 billion annually to the economy in direct, indirect and associated expenditure. The Government recognise the strength of support on both sides of the House for horseracing and its concern around finances. I will outline measures taken by the government to protect horseracing, including the importance of the horserace betting levy which collects £105 million in 2023-24. The largest proportion of the levy is used to support prize money, budgeted at £72.7 million for racing fixtures in 2025—an increase of £2.2 million on 2024 and around £13 million more than each of the pre-covid years of 2018 and 2019. The Government will continue to work with the levy board and the wider industry to maximise the benefits of the levy, especially in difficult circumstances following the sad death of Paul Darling this year. I also recognise significant work undertaken by both racing and betting industries to secure a sustainable future for the sport and welcome recent changes to the fixture list designed to grow the sport by bringing an additional £90 million to racing by 2028. The Government are inviting the betting and racing industries to resume negotiations on a voluntary deal, sharing hope that they will reflect on areas where there was agreement. We are committed to supporting British horseracing which is vital to our economy and brings joy to many people.
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.