Commons Sense

House of Commons · Westminster Hall

Horseracing

24 October 2024 · 13 other contributors · 13,197 words

Opened by Nick Timothy Con West Suffolk

Responding minister: Stephanie Peacock

Agriculture & Rural Affairs

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

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

Key points

  • Nick Timothy is concerned about the British horseracing industry's precarious future due to lower prize money compared to international competitors.
  • He requests the Government to increase the betting levy to at least 11.5% to create a growth fund for marketing and promoting British racing.
  • Nick Timothy also seeks reform of the current levy system to ensure it applies to bets placed on races both in Britain and overseas equally.

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.

Opened the debate

Nick Timothy Con West Suffolk

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.

Other contributors (13)
  • Dan Carden Lab Liverpool Walton

    Gratefully acknowledged the hon. Member for securing the debate, emphasised the importance of getting more money into the racing industry to ensure well-paid jobs for those who rely on it as their livelihood. Dan Carden praised horseracing's economic and social impact, highlighting Aintree racecourse's £60 million contribution to the economy. He expressed concerns about low prize money in Britain compared to other countries and the current funding model's precariousness due to declining betting turnover.

  • George Freeman Con Mid Norfolk

    Congratulated the hon. Friend on securing a well-attended debate, noted his family's involvement in horseracing and expressed concern over the unhealthy financial state of racing, suggesting it relies on money trickling down from the top. Emphasised that if UK horseracing is not supported adequately, it could lead to a decline in betting revenues and an increase in money going into other racing industries, such as Ireland's, where horses have more entries.

  • Grahame Morris Lab Easington

    Supporting the horseracing industry, Grahame Morris highlighted its cultural and economic importance, noting it attracts almost 5 million spectators annually and contributes £4.1 billion to the UK economy each year. He expressed concern about the need for reform of the horserace betting levy to support prize money, equine welfare, and veterinary science.

  • Helen Maguire Lib Dem Epsom and Ewell

    Praised the horseracing industry's contribution to Epsom, highlighting the Derby festival drawing over 40,000 people annually and the year-round benefits from racecourses and training facilities. Noted concerns about antisocial behaviour but mentioned positive outcomes of addressing these issues with local authorities.

  • Jack Rankin Con Windsor

    Mr. Rankin highlighted the importance of horseracing in his constituency, particularly the Royal Windsor and Ascot racecourses. He noted that Ascot alone welcomes 270,000 spectators annually and employs over 4,500 staff during peak times, contributing £68 million to the local economy. Mr. Rankin expressed concerns about the potential impact of increased financial checks on customers, which could push gambling underground and reduce funding for horseracing. He also mentioned that problem gambling statistics in racing are lower compared to some national lottery products.

  • Lee Dillon Lib Dem Newbury

    I am concerned about the financial difficulties facing horseracing trainers in my constituency, including forced land sales to stay afloat. I support the hon. Member for West Suffolk's six asks of the Government and call for better balance between responsible gambling measures and freedom of choice.

  • Lincoln Jopp Con Spelthorne

    Lincoln Jopp acknowledged Kempton Park racecourse's significant economic impact, including hosting markets and training events. He expressed concern about British horseracing falling behind internationally but urged the Minister to support growth through a judicious settlement of the levy.

  • Louie French Con Old Bexley and Sidcup

    Stressed the economic, cultural and social importance of horseracing in the UK. Highlighted that direct revenues are over £1.47 billion annually and total contribution is £4.1 billion, making it second only to football for attendance, employment and revenue. Emphasised the industry's role in combating loneliness through high street betting shops. Raised concerns about declining betting turnover (-17%) and operator support withdrawal. Called for Government clarity on horserace betting levy review.

  • Max Wilkinson Lib Dem Cheltenham

    Discussed the economic and cultural significance of horseracing, particularly in Cheltenham. Called for reforms to the levy system to level the playing field with international competitors and protect racecourses from problem gambling measures. Raised concerns about antisocial behaviour during race weeks and the need for stricter local authority control over SEVs (sexual entertainment venues). Emphasised the importance of animal welfare improvements.

  • Sally Jameson Lab Co-op Doncaster Central

    Emphasised the importance of horseracing to Doncaster's economy and culture, mentioning the racecourse's long history and economic value. She asked the Government to implement the betting levy settlement with the British Horseracing Authority and called for an independent review of the funding model.

  • Sarah Dyke Lib Dem Glastonbury and Somerton

    Ms Dyke discussed the economic value of horseracing, noting it contributes £4.1 billion annually to the UK economy. She expressed concerns that stringent affordability checks could lead to a loss of £50 million for the sport and push 40% of bettors towards illegal betting markets. Additionally, she highlighted the importance of safeguarding rural jobs and apprenticeships in the horseracing industry, urging the Government to ensure these opportunities are accessible to local residents.

  • Stuart Anderson Con South Shropshire

    Thanked the hon. Friend for securing the debate, expressed delight at having Ludlow racecourse in his constituency, and raised concerns about uncertainty created by a lack of Government support for horseracing.

  • Warinder Juss Lab Wolverhampton West

    British horseracing generates £300 million annually in taxation, contributing to the economy. Wolverhampton racecourse is an important part of the city's culture and heritage, hosting evening meetings, concerts by famous bands like Madness and UB40, and providing facilities for weddings and conferences.

Government Response

Stephanie Peacock

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.

Get updates like this by email
▸ Assessment & feedback
Summary accuracy