Horseracing

Thursday 24th October 2024 Westminster Hall

13:30

[Nick Timothy (West Suffolk) (Con)]

I beg to move,

That this House has considered Government support for the horseracing industry.

It is a pleasure to serve under your chairmanship, Sir Edward. I thank hon. Members for attending the debate—I know it is a Thursday, but people have shuffled their diaries to attend because of the industry’s importance to all our constituencies and to the country.

Racing is, after football, the second most watched sport in the country. About 6 million people attend the races every year, among them people of all ages, 40% of whom are women. Contrary to myth, racing is a cross-class sport—not that we want to use this debate to define working people. British racing is without doubt an international success story. Four of the top 10 races in the world are held here, which is more than in any other country. We have the best bloodstock; our races attract the best horses; and Britain has some of the finest trainers and horses, including modern legends such as Frankel and Enable.

Racing, like all sports, is a business and it brings huge economic benefits. The industry is estimated to generate £4.1 billion in direct, indirect and associated expenditure every year. About 85,000 people are employed at race- courses, training yards and breeding operations, and in the betting industry. In Newmarket, racing brings in more than 7,000 jobs and generates hundreds of millions of pounds a year for the local economy.

[Stuart Anderson (South Shropshire) (Con)]

I thank my hon. Friend for securing such an important debate. I am delighted to have Ludlow racecourse in my constituency and, if he ever gets the chance, I would welcome him to Eyton races—a great day out. He made an important point about the local economy, so does he agree that the lack of a clear way forward and support from the Government at this stage is creating uncertainty in horseracing?

[Nick Timothy]

I am sure all hon. Members would look forward to a trip to Ludlow to experience the racing. If I am honest—I say this as a Conservative—this issue has dragged on for a while. I will turn to some questions for the Minister shortly, but time is of the essence.

As so often with Britain, part of the draw, especially for international investors, traders and spectators, is our history and tradition. Racing in this country dates back more than three centuries, and thoroughbred racing was first created here. The association with royalty, which continues with His Majesty the King, only adds to the prestige—I am sitting next to my hon. Friend the Member for Windsor (Jack Rankin), the most ardent monarchist in the House of Commons.

That success story, however, is strangely neglected. To those who do not know the industry, it can sometimes appear to be something of a caricature, with horses selling for millions of pounds, breeders paying hundreds of thousands for a particular stallion to cover a mare, and aristocrats and royals being prominent in their patronage. But the reality of racing, unfortunately, is that its future is far more precarious.

Many breeders and trainers operate on tight margins and, as many hon. Members present will affirm, any conversation with them turns quickly to prize money. A horse that wins a top-tier British race increases its future breeding value, but the immediate return is limited compared with in Australia, Ireland and France, where racing benefits from Government support, or in Japan and the United States, where there is simply more money around.

The prize fund for the Dubai Turf, for example, is £4.5 million, and for the All-Star Mile in Australia it is £2.7 million. The Queen Anne Stakes in Ascot, which is a fair equivalent, offers £600,000, and the same is true for the less famous races. At an average of £16,000 to be divided by all placed horses, prize money across the board is much lower here than in competitor markets. Lower down the pyramid, most races pay less than £5,000 to the winner. Owner expenditure far outstrips the total prize money up for grabs in British racing. That is down to how the industry is funded.

In Japan and Hong Kong, where betting is generally banned, there are exceptions for horseracing and some other sports, because they are seen as being run efficiently and by Government Departments. That means proportionately more bets are placed on horseracing than elsewhere, and in both places the industry controls the gambling. In France, prize money is underwritten by the Pari Mutuel Urbain, which enjoys a monopoly on betting. In Australia, where prize money has almost doubled in a decade, it is funded mostly through a betting tax. In Ireland, more than two thirds of prize money comes directly from the Irish Government.

Our system is different. Here the funds come from media rights, executive contributions from racecourses, owners’ entry fees, and the betting levy—a 10% tax on bookmakers’ profits from bets placed on races staged in Britain. Around a third of prize money comes from the levy, but income is falling. Over the past two years, the industry estimates that betting turnover on British racing has fallen by over £1.5 billion and could be as low as £7 billion this year. The Horserace Betting Levy Board says

“falling turnover is unlikely to prove a positive for the sport’s long-term health”,

and I agree.

Nobody expects us to adopt a Japanese or French model, but I ask the Minister how things might be changed so that we can put racing on a sustainable footing and make sure that we retain our position as the best place in the world to breed, train and race horses. First, does the Minister agree with all hon. Members present—this is probably the easiest of my questions— that the British horseracing industry is an undoubted international success story, a source of British soft power around the world, and home to many vital community assets in regional towns here, and that we must therefore do everything in our power to make sure it continues to prosper?

Secondly, will the Minister confirm today that the Government will not go back to square one and will instead pick up where their predecessors left off? In May, the British Horseracing Authority agreed with the Department for Culture, Media and Sport that the levy should be increased to 11.5% to create a growth fund to market and promote British racing at home and abroad, and to hold an independent review of the racing funding model.

[Dan Carden (Liverpool Walton) (Lab)]

I am grateful to the hon. Member for securing this debate—he and I are co-chairs of the all-party parliamentary group on racing and bloodstock. It is important to get more money into the racing industry because there are so many people employed throughout the sport for whom racing is their livelihood, but their commitment and the lifestyle that they have to lead to do their work means that we must make sure they are in decent well-paid jobs as well. We cannot have racing squeezed, as it could be in years ahead.

[Nick Timothy]

I completely agree with the hon. Gentleman. The racing industry is connected to many associated industries and many different kinds of jobs. As I said, when people see the large sums that are invested in bloodstock and so on, they do not always see that the industry rests on thousands of people, many of whom are on low incomes.

[George Freeman (Mid Norfolk) (Con)]

I congratulate my hon. Friend on securing this debate, which is well attended for a Thursday. He knows my family’s interest— I am about the only one who is not involved in racing; my father was a national hunt jockey. Does he agree that from the 2,000 Guineas and the Derby down to the small trainers, small tracks, point-to-points—Fakenham is just outside my constituency—the rural economy and pony clubs, there is an equine economy right across this country, but it relies on money trickling down from the top? Does he further agree that racing’s finances are not just unhealthy, but in crisis? The problem goes across a lot of Labour constituencies as well, so I support him in asking the Government—we will hear from the Minister—for a strong steer to prevent the further decline of racing’s finances.

[Nick Timothy]

I agree emphatically with my hon. Friend. I do not think this is a party political matter at all. We are all in this room regardless of our party badges because we know the importance of horseracing to our constituents and to our local economies and the country. A lot of the beneficiaries of the British horseracing industry reside in rural and semi-rural areas and regional towns. We spend a lot of time talking in this House about how we are going to improve the regional economy and racing is a really important part of that economy. To return to my point, we do not have time to go backwards.

As part of the work that I referred to, my third question is: will the Minister commit in this debate to the principle of a higher levy? In 2022-23, the levy raised £105 million, but the British Horseracing Authority estimates that an indexed yield of at least £133.5 million is needed for a sustainable future for racing.

Fourthly, will the Government reform the way in which the levy works? It is anomalous and nonsensical that the levy should apply to bets placed here on the races in this country, but not on bets placed here on races held overseas. That does not happen in Ireland or France, which derive significant income from the best British meetings, and we are penalising our own industry. I note that the Gambling Minister, Baroness Twycross, has committed to

“making sure that the levy is administered efficiently to best support racing.”—[Official Report, House of Lords, 29 July 2024; Vol. 839, c. 801.]

Indeed, I think the way in which the levy works is a vital part of that commitment.

Fifthly, following the Secretary of State’s encouragement that

“we cannot believe everything we read in the papers”—[Official Report, 17 October 2024; Vol. 754, c. 969.]

as somebody who sometimes writes in The Daily Telegraph, I demur—can the Minister rule out today the reported Treasury plan to increase taxes on bookmakers? If the idea is to crack down on problem gambling, such a blanket policy would be like using a sledgehammer to crack a nut, and would obviously damage the racing industry.

Sixthly, and finally—you might be grateful to hear that, Sir Edward—the Secretary of State rightly wants to “strike the right balance” to prevent problem gambling while also protecting the racing industry and responsible gambling, which she says

“brings joy to many people.”—[Official Report, 17 October 2024; Vol. 754, c. 968.]

Will the Government commit today to ensuring proportionality in their efforts to stop problem gambling?

Even though Parliament has not legislated for affordability checks, as the gambling review has dragged on, bookmakers are operating pilot checks at the behest of the Gambling Commission. The idea was that those checks would be frictionless, and we were told that eight in 10 people placing bets would never undergo checks, but we know that punters are being asked to provide bank statements and payslips to prove they can afford their bets. Nobody wants to see problem gambling go untackled, but the rate of problem gambling on horseracing is comparable with that of many national lottery products, and affordability checks are already driving people away from legal betting on horseracing and on to the ever-growing offshore black market through online accounts, where of course there are no safeguards at all.

While the numbers for viewing and attendance at races is at least the same as it was before affordability checks, we know that betting turnover, and therefore racing income, is down by 20% in two years. Independent analysis for the Racecourse Association has forecast a £250-million hit to racing over the next five years, and the BHA says that one in seven jobs in the sport could be lost because of that issue alone. We need to appreciate the difference between gambling on racing or other sports, and the fixed-margin gambling online and in casinos that drives so much addiction and suffering. If we do not, it will be to the detriment of the racing industry and the enjoyment, employment and prosperity that it brings to so many. I look forward to hearing from the Minister.

[Several hon. Members rose—]

[Sir Edward Leigh (in the Chair)]

Order. To get everybody in, we will start with an informal time limit, so please do not speak for more than five minutes. Keep an eye on the clock, please.

13:43

[Grahame Morris (Easington) (Lab)]

Thank you very much, Sir Edward—it is very kind of you to call me so early in the debate. I declare an interest as the vice-chairman of the APPG on racing and bloodstock. It is a pleasure to serve with you, the Father of the House, as custodian of the time limits and procedures. I appreciate your advice, and I will stick to the required five-minute maximum. I congratulate the hon. Member for West Suffolk (Nick Timothy) on securing this important and timely debate.

I have always been a firm supporter of the horseracing industry. It may be the sport of kings, but it is loved by many thousands, if not millions, of working-class people. It is a vital part of not only our rich cultural heritage but our economic engine, especially for more rural communities and towns in areas such as mine. We have 59 racecourses across England, Scotland and Wales, and as was mentioned a little earlier, the industry draws almost 5 million spectators each year—I was actually surprised by the numbers. World-renowned events such as Royal Ascot, the Cheltenham festival, the grand national at Aintree—represented by my good and hon. Friend the Member for Liverpool Walton (Dan Carden)—and the Ebor meeting at York attract people from all walks of life, who appreciate the opportunity to visit in person.

However, smaller, less famous racecourses are of equal, or perhaps more, importance to local communities. The hon. Member for South Shropshire (Stuart Anderson) mentioned his racecourse in Ludlow—I am not familiar with it, but perhaps I will visit at some point in the future. We are blessed with many such racecourses in my region, with Hexham in the north and Sedgefield—the racecourse nearest my constituency—in County Durham, and they all play a crucial role in supporting the regional economy. Of course, I must mention Newcastle racecourse, the home of the Pitmen’s Derby—the Northumberland Plate—and, soon, the Fighting Fifth.

As we have heard, horseracing contributes a not insubstantial £4.1 billion annually to the UK and supports more than 85,000 jobs—it is actually the second largest spectator sport after football. It plays a significant role in rural areas, offering employment, boosting tourism and sustaining industries, including not just those directly involved in horse breeding and horseracing, but catering, transport and hospitality. However, as we are all aware, the industry faces economic challenges, many of which stem from previous policy decisions, as recognised in the 2023 gambling White Paper. As a result, it is accepted that reforms are necessary to ensure the sustainable future of this crucial sector.

One of the most pressing issues—I am sure the Minister is fully aware of this—is the need to reform the horserace betting levy, which is absolutely crucial for funding not just prize money to attract the best entrants, but equine welfare and veterinary science. Although the levy was due for review this year, the process was delayed because of the general election. In May the British Horseracing Authority and the Department for Culture, Media and Sport reached an agreement to reform the levy, including by increasing the rate to 11.5%—I am sure the Minister will say a bit more about that. That would create a growth fund to promote racing domestically and internationally, and I gently encourage her to continue engaging constructively with the British Horseracing Authority and to build on those important earlier discussions. I understand that the British Horseracing Authority is eager to return to negotiations as soon as possible to secure a sustainable future and a sustainable funding model.

I completely agree with the argument we heard earlier that the levy should apply to all racing globally that is bet on by British punters. There is an international precedent for that, so I am not quite sure why it has not yet happened—it might be the technology, but advances in technology make it possible now. That would bring us in line with other leading nations, particularly Ireland, and would help to ensure the sport’s long-term viability.

Horseracing is a vital part of Britain’s economy and culture. It provides jobs, supports rural employment and attracts global attention and publicity. As I and other colleagues have said, it faces serious challenges, but those can be resolved through horserace betting levy reforms. I am confident that our new Labour Government and our new Minister and ministerial team will work with the industry to make the necessary changes and ensure that this sport continues to thrive for years to come.

13:49

[Sarah Dyke (Glastonbury and Somerton) (LD)]

It is a pleasure to serve with you in the Chair, Sir Edward. I congratulate the hon. Member for West Suffolk (Nick Timothy) on securing this important debate.

Last week, I was lucky enough to attend the season opener at Wincanton races in my constituency. I found it hugely valuable to be there and discuss the issues of trainers, jockeys, owners and those watching the races alike. As the hon. Member said, the British horseracing industry is worth £4.1 billion a year to the UK economy, but most of that comes from mega-wealthy bettors who can afford to make substantial bets.

It is right that the Liberal Democrats have committed to implementing affordability checks, but it is vital that those checks protect vulnerable problem gamblers and their families, rather than deterring wealthy players, who help underpin the sport. One analysis shows that enhanced financial risk checks in horseracing, if implemented badly, could result in the sport losing £50 million a year. Similarly, a British Horseracing Authority survey suggests that 40% of bettors would turn to the black market if affordability checks were too stringent. Given that remote betting turnover, which accounts for at least 70% of all betting, continues to decline, the industry cannot afford to see that level of financial support just walk away. The Government must work with the industry to implement robust and frictionless affordability checks.

Racecourses, training yards and breeding operations are largely based in rural areas such as Wincanton and play an important economic role in those areas. Some 20,000 people are directly employed by the horseracing industry, and it supports another 65,000 jobs in supply chains. There is a real opportunity for the Government to ensure that local people in rural areas can access these jobs, by boosting the availability and take-up of apprenticeships and expanding higher vocational training. The lower apprentice rate should be scrapped to guarantee that everyone working in the horseracing industry receives at least the national minimum wage. That is particularly important in rural areas such as Glastonbury and Somerton, where people still typically need to spend an additional 10% to 20% more on everyday requirements than those in urban areas due to the rural premium.

We should not forget that horseracing also plays an important cultural and social role at the heart of rural communities such as mine. In Glastonbury and Somerton, charities such as Racing to School are doing valuable work to provide curriculum-based visits to Wincanton racecourse for local schools. A day at the races is also an important way for many in rural communities, including the elderly, to socialise. I urge the Government to strike a balance between protecting these vulnerable groups, tackling the harms of problem gambling and ensuring that people are not unduly deterred from the sport.

Coming from a farming family and having ridden horses for much of my life, I care deeply about the welfare of the horses at the heart of this industry. The UK has some of the highest welfare standards in the world, including in horseracing, but I fear that that may slip unless the Government take steps to address the domestic vet shortage. Half of vets leaving the industry have been in the profession for less than four years. Recruitment and retention are significantly more challenging in rural areas such as Glastonbury and Somerton.

To conclude, I urge the Government to work with the horseracing industry to introduce real safeguards and guardrails that support the progress that the industry has already made, such as the Betting and Gaming Council’s new voluntary code on consumer checks. The priority must always be to protect problem gamblers from being exploited by predatory gambling companies, rather than saddling the horseracing industry with tax rises to fix the financial mess left behind by the previous Conservative Government.

13:54

[Dan Carden (Liverpool Walton) (Lab)]

Thank you, Sir Edward, for your chairmanship of today’s debate, and it is a pleasure to be able to contribute. I refer Members to my declaration in the Register of Members’ Financial Interests and congratulate the hon. Member for West Suffolk (Nick Timothy) on securing the debate. His extraordinary constituency has Newmarket in it, and I have not been there since I was about 10 or 11, when my godfather took me to see the sales taking place—I hope I can go and relive that experience at some point soon.

I have loved horseracing since I was a child. My dad, who was a dock worker, would take me to local racecourses. I did not grow up in the countryside, but in the city of Liverpool, and he would take me to Haydock racecourse and Aintree racecourse. The first grand national I attended was won by Red Marauder, and only four horses out of 40 finished the race—Red Marauder, Smarty, Blowing Wind and Papillon.

[Sir Edward Leigh (in the Chair)]

That is very impressive!

[Dan Carden]

The racecourse was an absolute bog filled with water, and two of those horses had to be remounted to get to the finish. The event hooked me on horseracing because it was so extraordinary.

The hon. Member for West Suffolk and I now chair the all-party parliamentary group on racing and bloodstock, and our first meeting of this Parliament was attended by well over 20 colleagues. That—along with the strong attendance at this debate on a Thursday—just shows how highly the sport is considered.

I am incredibly proud to represent the Walton constituency, which now has Aintree racecourse within it. Aintree is home to one of the greatest races in the world, which is watched by more than 600 million people globally: the grand national. The economic contribution of the grand national—the three-day race meeting—is well over £60 million for. Aintree racecourse is also a world-class sporting facility, as well as being part of the local community, maintaining strong relationships, as some hon. Members will know, with Alder Hey children’s hospital, Park Palace Ponies and some of our schools and educational establishments. There is so much more potential for racecourses in our communities to have a positive and meaningful social impact, especially in urban areas. There is the potential for young people to benefit from alternatives to the classroom when it comes to skills and apprenticeships, and there are alternative fulfilling careers. Racing can play a role in helping the Government to deliver their national mission for growth.

Whatever the challenges British horseracing faces, it will always benefit from its prestige, including its centuries-old thoroughbred history, from Eclipse to Frankel, and Ascot racecourse, which was founded in 1711. Horseracing bridges the class divide. All of us want British horseracing to thrive into the future. For those who work in the industry, it is a labour of love and dedication, and a total life commitment.

The hon. Member for West Suffolk did an excellent job of putting on record the low prize money offered in Britain, compared to countries with different funding models, so I do not need to repeat that. However, given the reported decline in betting turnover, the current system —the reliance on media rights, racecourse contributions, owners and the levy—leaves the industry looking precarious. That is a real concern for all those who rely on it, and like all those in leadership roles in the industry, we in this place also have concerns. My message to the Minister and her colleagues is that they, and we as a Labour Government, have a responsibility to be good custodians of the industry for the future.

British racing is British soft power; it creates bonds between states—not just our neighbours in France and Ireland, but Japan, Australia, the US and the Gulf states. It is one of the finest cultural and economic assets this country possesses, and it rightly has a reputation as a global leader. Will the Minister commit to being proactive in backing the industry and all those who work in it? Will she carry forward the current levy negotiations with at least the suggested increase and with some urgency? While negotiations between the Betting and Gaming Council and the BHA are resuming, we must remember that the Government set the red lines and make the decisions. Finally, could we have that independent review into the future of racing—into the funding model for racing—to ensure that, in the years ahead, we can arrive at a sustainable settlement to save and promote racing?

13:59

[Lincoln Jopp (Spelthorne) (Con)]

It is a pleasure to serve under your chairmanship, Sir Edward. I pay tribute to my hon. Friend the Member for West Suffolk (Nick Timothy) for securing this important debate. I declare an interest: just 12 miles or so from here, and just round the corner from where I live in Sunbury in my Spelthorne constituency, is Kempton Park racecourse, where I enjoyed Jump Sunday as a guest of the Jockey Club last Sunday. It was a glorious and memorable day, and all my family will be back on Boxing day to enjoy the King George VI and Kauto Star Novices chases.

To the people of Spelthorne, the all-weather flat and turfed jumps courses are much more than that. The racecourse plays host to the weekly market and to the fortnightly international antiques market, now in its 40th year, where the buyers from the nearby Shepperton studios create the sets for the around 31 soundstages there. The annual total attendance for the racing is 20,000, multiplied many times by the global television audience, and for the antiques market it is 80,000. The course regularly hosts school visits and police training, and has a sell-out fireworks display in early November.

At its heart, Kempton Park is about the racing and the 70 or so meetings held there every year, and it is every bit as important to our national fabric as Formula 1, our world-leading track cyclists and the premier league. But, as my hon. Friend described, British horseracing, having led the world from its inception, is in danger of falling behind the leading group internationally. Where horseracing fails, it fails fast, and the Government want no piece of that.

Enough of the stick—what about a bit of carrot? The Minister has a huge opportunity to be the jockey who rides in a winner, generating growth and prosperity for our nation. With a swift and judicious settlement of the levy and protection from egregious taxation and regulation, the Minister will lead a late run on the stand rail. Glory awaits; I hope she achieves it.

14:02

[Sally Jameson (Doncaster Central) (Lab/Co-op)]

I thank the hon. Member for West Suffolk (Nick Timothy) for securing this debate. I refer Members to my entry in the Register of Members’ Financial Interests.

Horseracing is a national treasure and the UK is a world leader in the sport, which is worth more than £4.1 billion annually to the UK economy, as has been said. In Doncaster, our racecourse is a source of great pride. It is one of the oldest racecourses in the country, in operation since 1614, and has been home to the best race festival, the St Leger, since 1776. As well as being the largest racecourse in the country, it acts as a concert venue, hosting iconic pop artists such as the Saturdays, Madness and Jess Glynne. It was also host to this year’s election count, where I was duly elected to this place—without doubt, the best count in the country.

The importance of horseracing to Doncaster’s culture and the economy cannot be overstated. On leaving Doncaster railway station, visitors to our city can see our racehorses across the road on the city’s mural, and for four days each September Leger Way becomes impassable as locals and visitors alike flock to the country’s most iconic fixture at the racecourse. But we also have fixtures throughout the year—there were 36 in 2023—which are always popular events for both my constituents and visitors from further afield.

The racecourse is one of the jewels in Doncaster Central’s crown. As a proud Doncaster native and regular attendee at my course, I hope that racing continues to flourish to uphold this important cultural and economic asset in my city. To do that, it is important that the Government set the necessary conditions to sustain it and for it to flourish. As has been discussed, the British Horseracing Authority and the previous Government reached a settlement on the betting levy. The changes were due to take place in September, but following the election and the welcome change in Government, we have yet to see them implemented. I ask the Government to pick up the discussions on that settlement so that the horseracing industry can have clarity on its future and on the settlement, and to ensure that racecourses such as Doncaster are able to prepare and adapt to any changes.

I also ask, as other Members have, that the Government pick up on the need for an independent review of the wider funding model for the sport after this year’s settlement has taken effect, to ensure that the industry is able to succeed. I repeat the ask that consideration be given to applying the horserace betting levy to all horseracing globally that is bet on by British customers.

It is imperative that we do not underestimate the value of British horseracing to many constituencies like mine and recognise that we must protect its interests, so that racecourses such as ours in Doncaster can continue to thrive and provide high-quality events and jobs for visitors and constituents for the years to come.

14:05

[Mr Lee Dillon (Newbury) (LD)]

It is an honour to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for West Suffolk (Nick Timothy) on securing this important debate.

It is an honour to represent a constituency that includes both Newbury racecourse and the Lambourn valley, which is home to some of the finest trainers in the country. Lambourn valley supports 34 trainers and employs more than 750 full-time workers, accounting for 30% of all jobs in that area. In addition to providing employment opportunities, the facilities make a major contribution to the local economy, with the gross value added from Lambourn estimated to be more than £22 million.

Nearly 15 miles south of the Lambourn valley, in the southern part of my constituency, lies Newbury racecourse. Unfortunately, our general election count could not be held there because an evening meet was going on. The venue hosts 31 meets annually, including the winter festival, and more than 23,000 people can be hosted both indoors and outdoors, generating an additional £5 million in gross added value.

It is clear that the industry is at the heart of my constituency, and it plays a vital role in ensuring the continued prosperity of the local economy. It does and can do more to support Labour’s focus on economic growth, but it needs support from the Government.

The hon. Member clearly laid out six asks of the Government. Although I do not want to repeat the excellent arguments he made, I put on the record my support for those measures. In particular, I will briefly address his sixth point regarding responsible gambling. I agree that none of us wants to see problem gambling go unchecked, but with the use of online platforms it is surely not beyond reason for sites to allow different access for different betting needs. A horse owner recently remarked to me that he could buy a horse for £40,000 without any checks, but he now has to provide bank statements in order to stake a couple of thousand pounds on a race. We need to find a better balance between protecting those most at risk and allowing people to spend their money freely without the involvement of the state and greater regulations.

I recently had the privilege of meeting trainers in Lambourn to discuss the importance of the industry to the local community and learn more about their outstanding efforts in caring both for horses and for the surrounding environment. During our conversation, they shared their concerns about the financial difficulties they face, including being forced to sell land just to stay afloat. The situation is unacceptable. Many people, both in my constituency and throughout the country, depend on the industry economically and socially.

It is vital that the Government take action to ensure the survival and continued success of the horseracing industry. The six asks from the industry, as raised by the hon. Member for West Suffolk, will clearly help but, outside of direct interventions and tax changes, more needs to be done to support the industry indirectly. For example, balancing support for local economies such as Lambourn while balancing the environmental impacts of building in a national landscape is key.

Without a sensible approach, the horseracing industry of my home will struggle to continue. Stables are struggling with recruitment because workers are unable to find places to live. The median house price in Newbury is £99,000 higher than the median house price in the country as a whole, starting at £385,000. Prices are out of reach for most. If stables are unable to recruit staff due to high housing costs, they may be forced to close for longer periods, leaving them without enough staff to care for and train the horses properly. Increasing the availability of social housing would be a significant step forward in addressing that issue.

We have also seen nutrient neutrality rules bring developments to a halt across the country, including in Lambourn, and we urgently need the Government to provide better advice and guidance to developers and local authorities so that development can continue while we protect our precious waterways.

The community of Lambourn is currently developing its own neighbourhood development plan, and it includes a focus on the impact of planning policy on the horseracing industry. This forward-thinking approach to better inform planners and decision makers of the unique aspects and challenges of the horseracing industry is welcome and will add real context in the consideration of planning decisions. More financial support from the Government is needed, along with a stronger commitment to build social housing. We must not overlook the incredible work the horseracing industry does.

Newbury racecourse has recently been named a finalist in two categories at the Racecourse Association showcase awards, being recognised for its consistently high operating standards. The awards take place on 7 November, and I wish Newbury racecourse the best of luck. I am due to visit the racecourse tomorrow for a behind-the-scenes tour followed by an exciting afternoon watching the races. It is always exciting to experience this wonderful sport at first hand and witness the hard work of the jockeys, trainers and yard staff in action. Historic sports like horseracing are essential for not only preserving traditions but sustaining the local economy. It is vital that we ensure its future for many years to come.

14:11

[Warinder Juss (Wolverhampton West) (Lab)]

It is a pleasure to contribute to this debate under your chairmanship, Sir Edward. I congratulate the hon. Member for West Suffolk (Nick Timothy) on securing the debate.

I am not a follower of horseracing—I am a football fan and a season ticket holder at Wolverhampton Wanderers, who unfortunately are not doing too well at the moment—but we do not have to be supporters or followers of horseracing to understand how important it is to this country. Wolverhampton racecourse in my Wolverhampton West constituency is an important part of the city. Statistics have already been mentioned, but one point that has not been made is that British horseracing generates £300 million annually in taxation, contributing to the economy. I had the pleasure of going around the racecourse and saw what it does for the city and contributes to the local community. One thing that was really apparent was the high standards of animal health and welfare and how well the horses are looked after.

Horseracing is part of British culture and heritage. The first recorded race was at Newmarket in 1622, and we have had a racecourse in Wolverhampton since 1825. Wolverhampton racecourse was the first track to have floodlights. There are also evening meetings, which contribute to community engagement with the racecourse.

My hon. Friend the Member for Doncaster Central (Sally Jameson) mentioned the bands that play at Doncaster racecourse, so I would like to boast that Wolverhampton racecourse has had such great bands as Madness, the Kaiser Chiefs, UB40 and the Human League. Another important aspect of Wolverhampton racecourse is that it is a venue for meetings, conferences and wedding receptions. I have attended many wedding receptions and meetings there. Wolverhampton racecourse also has a hotel, which has 54 bedrooms, but the City of Wolverhampton council has now given planning permission to increase the capacity to 170 bedrooms.

Horseracing is a part of the economic, cultural and historical heritage of this country. As far as I am concerned as the constituency’s MP, it is very much a part of the culture and heritage of Wolverhampton West. I want to ensure that nothing happens that diminishes the viability of Wolverhampton racecourse. I would like to see it continue to flourish, so that many people can attend horseracing and other events there. I very much hope that British horseracing continues and that Wolverhampton racecourse continues to flourish.

14:15

[Jack Rankin (Windsor) (Con)]

It is an honour to take part in this debate under your chairmanship, Sir Edward. I thank my hon. Friend the Member for West Suffolk (Nick Timothy) for securing this important debate.

I am very fortunate that in my patch I have two world-renowned racecourses—the Royal Windsor racecourse and Ascot racecourse. There is very rarely a better place to be on a Monday night than Royal Windsor—hon. Members are all very welcome. Ascot is obviously famous the world over, particularly for its annual five-day Royal Ascot event—an event that bucked the national trend this year by seeing an increase rather than a decline in attendance, which is a credit to all involved.

For those who heard my maiden speech this week— I cannot remember the name of his constituency, but the Member for Aintree clearly did—[Interruption.] I apologise to the hon. Member for Liverpool Walton (Dan Carden). Ascot racecourse was founded in 1711, and that course now has 330 years of history and has hosted some of the world’s greatest races. Royal Ascot has welcomed some of the greatest racehorses from countries all over the world, including the United States, Hong Kong and, probably most significantly, the Australian super-mare Black Caviar, which is often considered one of the greatest racehorses of all time. She only left Australia once, and that was to compete in Britain at Royal Ascot’s diamond jubilee stakes in 2012.

It is not only equine royalty that Royal Ascot attracts. A few speakers have made the point about Ascot’s soft power. We get prominent royal figures from Dubai, Bahrain and Saudi Arabia, and ambassadors from the Commonwealth and indeed the world over, which makes horseracing an important tool for soft power for this country. The event showcases the best of Britain and the best of my Windsor constituency on the world stage, and is broadcast in more than 180 territories internationally.

As well as the prestige that comes with competing in Ascot’s group 1 races, it is obviously a significant financial contributor in terms of increasing a stud horse’s value, which remains unrivalled in international racing. As some hon. Members have already pointed out, as a result the racing industry generates more than £4 billion per year and employs more than 85,000 people. Royal Ascot alone welcomes 270,000 spectators across five days and at peak time employs more than 4,500 staff. The visits to the racecourse make up 10% of national racing attendance and their economic importance to my constituency and the surrounding areas cannot be understated. In fact, in 2014 Deloitte assessed the economic impact of Ascot racecourse, just for that event, at £68 million in off-course expenditure through food, accommodation and fashion, all of which drives money into our local economy and into London, our capital, which hosts many punters during those events.

For years, the horserace betting levy has helped to fund the grassroots of horseracing. It is not just about Ascot at the top of the tree—this all filters down into grassroots sports. It increases animal welfare and raises the profile of the sport. At its best, that reciprocal, symbiotic relationship improves the sport and, in turn, the takings of betting companies.

However, a big risk we highlight to the Minister today is that an increase in financial checks on customers risks pushing a lot of gambling underground. Less money would be reinvested in the sport, and ultimately there would be less money for the Treasury. We should of course be doing what we can to ensure that a flutter on the races remains an innocent recreational sport, and we need to give support to the people who need it, but I would urge the Government to tread carefully and acknowledge the unintended consequences of further regulation, particularly as problem gambling statistics for racing are at low levels compared even with some national lottery products.

Any further introduction should be frictionless and should involve working closely with relevant stakeholders, whether that be the BGC or the BHA. Understandably, countries that have seen heavy regulation tend to see an increase in black market betting. PwC found that increased state regulation of gambling in Norway led to 66% of all gambling there taking place on the black market, and similar conditions have created huge black markets in Portugal, Bulgaria and Sweden.

[George Freeman]

My hon. Friend is making a powerful and important point. Does he agree that if we do not support the UK racing industry, including supporting prize money, we will not only drive the betting revenues away but see more and more money going into other racing? Last year’s Hennessy, a big race in the autumn which I watch, had four runners, and on television all the racing that was being shown was from Ireland, where their horses had 20 entries. If we are not careful, we will end up killing the goose that lays the golden egg. Does he agree?

[Jack Rankin]

My hon. Friend is quite correct to say that. I am a big cricket fan and effectively we have seen what big money overseas can do to the heart of a sport that originated in this country and gives us a lot of power, and we must be really careful about what we do. Obviously, we should also acknowledge that if people are pushed to the black market, there will be even fewer barriers to entry there, which might have a bad effect on problem gambling overall.

So, we are at an important crossroads for British horseracing. As bookies’ takings, which fund the levy, continue to decline, it is important that the Government’s approach to gambling respects individual liberty, and drives growth rather than limiting it. Just to expand on that—

[Sir Edward Leigh (in the Chair)]

Order. Will the hon. Member now draw his remarks to a close?

[Jack Rankin]

Certainly, Sir Edward.

I hope the Chancellor will carefully consider introducing further punitive taxes on the gambling sector in next week’s Budget, because that would further squeeze the horseracing industry. And given that the Labour party made growth its priority, I hope that this Government will be forthright in their support of British horseracing—an industry that plays a vital role in my local economy and in generating this country’s unrivalled soft power.

14:21

[Helen Maguire (Epsom and Ewell) (LD)]

It is a pleasure to serve with you as Chair today, Sir Edward, and I thank the hon. Member for West Suffolk (Nick Timothy) for securing this debate.

I am proud to speak today about the remarkable contribution that the horseracing industry makes to our local economy and community in Epsom, and to say why it is vital that we support this industry. For 245 years, Epsom has proudly hosted the Derby, one of the world’s most prestigious and historic horseraces. However, the Derby is much more than just a race; it is a symbol of Epsom’s rich heritage and tradition.

The annual Epsom Derby festival draws more than 40,000 people over two days in early June and is a spectacle like no other. That is not just because of the high-end hospitality experiences on offer, but because the middle of the racecourse is free to enter and open to the public, allowing everyone to participate. And Epsom is unique as a racecourse, in that people can stand on the side of the track without paying a single penny.

That accessibility is absolutely crucial in maintaining a sense of inclusion and community. Indeed, the downs, a public access area surrounding the racecourse, serves the community all year round. Epsom racecourse maintains that land for public use and local residents use the downs for everything from exercising dogs to flying model planes to running—there are running races on the downs—archery, hosted by local clubs, and even metal detecting, organised by groups. So, Epsom is indeed a model of how a racecourse can contribute more broadly and become a resource for the community.

Beyond the 11 race days that Epsom racecourse hosts each year, the Epsom training gallops form the backbone of the local racing ecosystem. That training centre, which is owned and maintained by the racecourse, draws trainers to the area, with 170 horses across 10 different yards. Those independent yards are local businesses that provide year-round employment and they buy in from local suppliers. Each trainer has between five and 50 horses, and it is estimated that over 100 people are directly employed in those yards, with even more jobs being supported indirectly. That training centre is a critical asset for Epsom and the surrounding area, and those trainers are there because of the facilities on the downs. Without consistent racing, prize money or a vibrant industry, those yards would simply struggle. The local economy benefits year-round from the employment, the use of local services and businesses, and the sense of vibrancy that those yards create.

Furthermore, the racecourse is home to over 250 non-racing events throughout the year, as many other Members have mentioned, supporting local businesses and community groups. It hosts business meetings, exhibitions, dancing competitions and pigeon shows. Recently, there were celebrations to mark the 80th anniversary of the D-day landings. The count at which I was elected was also held there. The racecourse facilities bring investment into Epsom from outside, while also offering a really versatile space for the community to use as needed. The excitement of the Derby is important, but the industry’s real strength lies in the ecosystem that it supports throughout the year. The Epsom training gallops attract trainers to local yards and sustain local jobs.

Unfortunately, on occasion festivities have got out of hand. Sadly, this year we saw residents in Langley Vale frustrated by antisocial behaviour, vandalism and even ball bearings being shot into their windows. Thankfully, follow-up conversations with the police, residents and the Jockey Club will mean that security arrangements will be tightened for next year.

I want to mention the unique structure of the Jockey Club, which owns Epsom and 13 other racecourses across the UK. It reinvests every penny it makes back into racing, so there are no external stakeholders taking a cut. The more Epsom Downs is supported, the more it contributes to societal investment, benefiting the local community and the sport as a whole. Prize money increases attract better horses, bigger crowds and more interest in the area, and that success ripples out, supporting jobs, local businesses and community initiatives. While Epsom Downs is best known for the Derby, the racecourse brings so much more than that to the community: it is a year-round focus of activity, a training centre for excellence and a cornerstone of our local economy and community. The horseracing industry there supports employment, attracts tourism and fosters a real sense of community pride. Whether it is through the world-class racing, the training gallops or the many events and opportunities available to locals, the industry remains an integral part of what makes Epsom special.

I agree with the six points that the hon. Member for West Suffolk made in his speech, particularly on the need to strike a balance to prevent problem gambling. I hope the Minister agrees that racecourses like Epsom should be supported to continue contributing to the local economy and community, by a review of the general funding model.

14:26

[Max Wilkinson (Cheltenham) (LD)]

It is a pleasure to serve under your chairmanship, Sir Edward. I thank and congratulate the hon. Member for West Suffolk (Nick Timothy) on securing the debate. I also thank Sporting John, the most recent horse that I successfully bet on at Cheltenham. The fact that it was in November 2021 tells us something about my record of success.

This debate is on a subject of crucial importance to our country and of central importance to my constituency. The breadth of the contribution of the horseracing industry to our nation’s economy and sporting and cultural life is undeniable. Indeed, as was mentioned, the world’s oldest classic race took place around a century before the first FA cup final. The first Cheltenham gold cup took place in 1819, although I am told that it was very different in those days. The hon. Member set out the economic contribution of horseracing to the country, and I will not go over that. However, it would be a disservice to local areas like my constituency if we failed to do everything possible to secure the future of the sport in a way that is good for racecourses, spectators and the economy of those local areas.

Racecourses are understandably frustrated that agreements reached prior to the general election have effectively timed out; that is why it was important to hold this debate today. Racecourses rightly seek clarity on the new Government’s position. On that note, I wholeheartedly back the hon. Member’s call for reform to the levy, which is a crucial part of the solution. Our racecourses must be placed on a level playing field with their international competitors; reform of the levy can help us support that goal. Extending the levy to cover bets placed in this country on races taking place abroad would help our racecourses and those who rely on them to achieve long-term financial sustainability. Can the Minister confirm that that is being considered alongside other reforms and the potential for uprating the levy to help racecourses?

Reforms to protect problem gamblers from the harm they encounter are long overdue, and it is good that there is cross-party consensus on the matter. Doing so in a way that protects racecourses is a key challenge for the Government, and I know Ministers will take that seriously. Can the Minister confirm that when the Government take much-needed action to address problem gambling, that will be done in a way that tackles the root cause by asking betting companies with the deepest pockets to bear the brunt of any changes, and not racecourses?

On local matters in Cheltenham, a study by the University of Gloucestershire found that the contribution of the 2022 Cheltenham festival to our local economy was a staggering £274 million over just four days. There are many other days of racing, which means the contribution to our town is significant. The festival helps our brilliant local hospitality industry. Many of its members tell me that they exist entirely on those four days; if they were not there, we would have far fewer excellent pubs, restaurants, nightclubs and bars. That industry has of course suffered so much in recent years. It also provides good jobs for local people.

I am a strong supporter of the racecourse and that will continue, but its positive impacts in Cheltenham do come with antisocial behaviour, which too often spills over into unacceptable behaviour, misogyny and practices that many local people find distasteful. It is to the racecourse’s credit that it has campaigned proactively to try to bring an end to the things that local people find difficult.

The Love our Turf campaign is helping. As part of that, over the last two years I have declared a war on wee during race week. That is against the legions of men—it is always men—who feel it is appropriate to urinate publicly in our town centre, in broad daylight, on their way to the racecourse. The use of hydrophobic paint on town centre walls and extra public loos have helped to reduce reports of public urination. The racecourse’s deployment of staff on routes to and from the town centre has also helped. But we must go further: the war on wee will be fought again this coming March.

On the subject of undesirable impacts, there is no demand for sexual entertainment venues in Cheltenham town centre for 51 weeks of the year, but during race week, the on-the-ground impact of the Local Government (Miscellaneous Provisions) Act 1982 appears to be that sexual entertainment venues can pop up in a local pub or bar with little reference to the local authority. That puts local councils in an invidious position. If they award a licence to an establishment, it is unpopular, divisive and unwanted by the local people, but if they do not, SEVs pop up in a seemingly haphazard way that places women at much greater risk of harm. The Minister probably cannot comment on that issue today, but I would be grateful if she raised it with appropriate colleagues.

I do not want to take away from the importance of the debate, but as the hon. Member for Cheltenham, I cannot stand up and support national hunt racing without raising these points of difficulty. It is not the racecourse’s fault—local people in Cheltenham know that—but the fault of many different authorities that need to get a grip. I thank the hon. Member for West Suffolk for giving me the opportunity to make that point, which does not take away from my support for the racecourse.

Another important matter, already raised by my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke), is animal welfare. The industry takes it seriously, but that is often badly misrepresented by those who seek to undermine the good work being done. It is important to get on the record that the Jockey Club has made significant improvements that are worthy of praise, such as lowering the height of hurdles at Cheltenham in recent years. The industry will do more in the coming years; it is listening.

An industry worth £4.1 billion, which supports 85,000 jobs and brings so much joy to so many people from all walks of life, must be cherished. There is cross-party consensus in the Chamber today, and Minister will have heard that. I am pleased to lend support through my comments, just as I will lend support to my picks at the Countryside day at the November meeting in three weeks’ time.

14:32

[Mr Louie French (Old Bexley and Sidcup) (Con)]

It is always a pleasure to serve under your chairmanship, Sir Edward. I thank my hon. Friend the Member for West Suffolk (Nick Timothy) for securing this debate. I congratulate him on being elected as one of the new co-chairs of the all-party parliamentary group on racing and bloodstock, alongside the hon. Member for Liverpool Walton (Dan Carden) who represents the fantastic Aintree racecourse, home of the grand national. For his information, my last winner was Silver Birch a long time ago; I cannot tell him who came second or third.

I look forward to working together to help to protect the future of British horseracing as a cultural and economic asset for the whole country. I know that is certainly the case in my hon. Friend’s constituency, home to the famous Newmarket racecourse and many world-class yards, having visited not too long ago. He is quickly becoming the Member of Parliament not only for West Suffolk but for horseracing—a title that many will be jealous of, including myself.

Putting aside the cultural and sporting importance of horseracing for a moment, the industry is of considerable economic benefit to the United Kingdom, as we have heard with respect to Ascot, Kempton Park, Ludlow, Aintree, Epsom, Wolverhampton, Newmarket, Fakenham, Newcastle, Doncaster, Newbury, Windsor and Cheltenham. I apologise if I missed any that were mentioned, but it shows the breadth of contributions from across our great country.

According to the British Horseracing Authority, the racing industry has direct revenues in excess of £1.47 billion and makes a total contribution to the UK economy of £4.1 billion. In fact, it was the second largest sport behind football for attendance, employment and revenues generated annually. More than 5.5 million people attended the more than 1,500 individual race meetings across England, Scotland and Wales in 2019. While attendance has not quite recovered from the pandemic, in 2022, almost 5 million people attended racing events across our great country.

In pure economic terms, the value of the industry is clear, but it contributes much more to life in Britain than just tax revenues. It is a core part of British culture that we have successfully exported around the world. On my travels in years gone by, I had the pleasure of witnessing at first hand some of the amazing horseracing courses in other parts of the world—I would add that I paid for that myself before I was a Member in this place.

Horseracing is synonymous with having a flutter, and the gambling industry is a key supporter of horseracing, providing a lifeline through racing’s income stream. Together, they are key to the non-financial benefits that I just mentioned. Research shows that 82% of betting shop customers visit their local shop at least once a week, and that 89% of those go on to visit other shops while on the high street. We have a clearer picture of loneliness in our society now than ever before, so we cannot take for granted the social contribution of horseracing, via high street betting shops and visits to the course.

Under the previous Conservative Government, we made the first major governmental contribution to the national conversation around loneliness and the importance of social connections. From my time working for a bookmaker when I was a student, I know that many people living in our communities rely on interactions with betting shop staff to keep them going. While the stakes gambled may not be high, I know many pensioners whose 10p lucky 15s are the highlight of their day—win or lose.

People who visit a betting shop or racecourse are helping to support the horseracing industry, with the horserace betting levy, sponsorship and media rights raising around £350 million for the sport overall. From the conversations that I have already had as the shadow Minister for Gambling, however, I know that there is an increasing tension in how the levy operates, which we have heard about already today.

I am sure that hon. Members present will already know that the horserace betting levy results in betting firms giving up 10% of their gross profits from horseracing back to the sport. That is on top of the 15% betting duty that the Betting and Gaming Council’s members pay to the Exchequer. Those members are expected to contribute a record £150 million in levy payments for 2023-24—the third consecutive year that the levy contributions have increased.

Despite the increased payments from betting to racing, betting turnover is down 17% in the first three quarters of this financial year. To further demonstrate the decline in racing, it is estimated that, in 2007, 17% of people enjoyed betting on horseracing, but that fell to 10% in 2018. As we have heard, that is causing great concern among not only racecourses but Betting and Gaming Council members. I have even heard reports of some operators already withdrawing offers such as paying extra places on races or offering best odds guaranteed, and some members have gone as far as not offering prices on horseracing meetings altogether. That is not sustainable or good for racing.

The previous Conservative Government were committed to the long-term success of horseracing in Britain. In line with the statutory requirement that we set out in 2017, we began the required review in April this year into the rate at which the levy is charged. Unfortunately, work on that has stopped dead in its tracks given the change in Government. Since the election, there has been a new appointment to the Horserace Betting Levy Board, with Anne Lambert appointed as interim chair, but otherwise the industry has been left in limbo by this new Government. On 29 July, Baroness Twycross, the new part-time Minister for Gambling, said in the other place:

“It is too soon for me to commit to the shape of future policy.” —[Official Report, House of Lords, 29 July 2024; Vol. 839, c. 801.]

Well, as we enter the national hunt season, the industry needs clarity and it needs it soon, as we have heard from other hon. Members today.

What support will the Minister and her Department be offering to the horseracing industry, financial or otherwise, and will she help to negotiate the new level at which the horserace betting levy is to be set? Will she bring forward some of the reforms set out in the gambling White Paper, which will help to level the playing field and promote growth in the sector? What conversations has she had with Government colleagues to make sure that the sport is not damaged by sky-high tax rises in the upcoming Budget? What measures is she taking with industry to stop the growth of the black market, and to make sure that punters can continue to have a flutter freely and safely? What support is she offering horseracing to help grassroots development, equine research and participation in the sport?

Horseracing is vital for many reasons: its economic contribution to the Exchequer, its social and sporting contribution, and the community it provides in mostly rural areas. From raising a foal to the final furlong, horseracing is an essential part of life for people and places up and down our country, as we have heard today. The industry is about not just sport, but, vitally, maintaining and promoting horse welfare across the country.

The BHA’s expenditure supports horse welfare; one of its goals is to drive high-quality care and support for the horse in racing. In total, the Horserace Betting Levy Board spends around £3.5 million annually on horse-related areas, such as educational research and a number of horse welfare projects. As we have heard already, the Jockey Club has also made changes over the years to ensure that the safety of horses is improved at our tracks. Moreover, the BHA is responsible for the safety of horses at races in Britain and works with animal welfare organisations, such as the Royal Society for the Prevention of Cruelty to Animals and World Horse Welfare, to keep racecourses as safe as possible for the horses. The cross-industry Horse Welfare Board also makes recommendations, including a multi-year strategy to improve welfare.

Earlier this year, alongside Great British Racing, the BHA launched a new campaign, HorsePWR, to promote the facts around welfare in horseracing and to challenge and correct inaccurate information in the public sphere. As the Horse Welfare Board’s first five-year strategy comes to a close in the new year, I hope to work with the BHA as it begins to prepare the next one. For anyone listening who has not had the opportunity to visit their local yard, I highly recommend going to their nearest stables to see the fantastic passion and work that goes on. I also recommend a trip to the National Stud, which is like visiting a five-star hotel—but visitors should make sure to take some Polo mints to keep the horses happy if they are allowed close to them.

From end to end, the equestrian economy is valued at nearly £8 billion, almost half of which is not the racing industry. Horseracing, as we have heard, is much more than just a sport; it is a true British pastime that has a permanent place in the hearts of many people across the country—me included—and it must continue to be supported by this Government as it was by the previous one. In closing, I urge the Government, after a slow start, to leave the stalls, gallop into action as if they were Kauto Star cruising up the Cheltenham hill, and give British horseracing the certainty and future it deserves to remain internationally competitive.

14:41

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (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. I congratulate him and my hon. Friend the Member for Liverpool Walton (Dan Carden) on being elected co-chairs of the all-party group; the Department looks forward to working with them.

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. As has been rightly mentioned, it plays a central role in the livelihood of many different communities. I am well aware from my time as the shadow Minister for Gambling of the strength of support on both sides of the House for horseracing, and of the concern around its finances. In February, I took part in a Westminster Hall debate on that subject, prompted by a petition signed by more than 100,000 people. Horseracing is a powerhouse industry that supports employment across racecourses, training yards, breeding operations and related sectors, and is respected at home and abroad.

Horseracing is the second-biggest sport in the UK in terms of attendance. According to the British Horseracing Authority, racing is worth more than £4 billion annually to the economy in direct, indirect and associated expenditure. British racing and breeding enjoy a reputation as a global leader and is promoted worldwide as part of the “GREAT Britain & Northern Ireland” campaign, recognising the cultural and economic importance of horseracing to the UK and the role it plays as a soft power asset.

I will outline the measures that the Government are taking to protect horseracing and its valuable economic and cultural contribution. I will also take this opportunity to highlight the importance of the horserace betting levy, which has been mentioned a number of times. Given the long-standing acknowledgment of the symbiotic relationship between racing and betting, racing is the only sport with a direct levy that is overseen by the Government. The levy is therefore our most direct lever for supporting the sport, but it needs to reflect the common interests of both sides of the relationship.

The Horserace Betting Levy Board collects the levy, as Members know, and applies the money raised for one or more of the following purposes: supporting breeds of horses; the advancement or encouragement of veterinary science and education; and the improvement of horseracing. The largest proportion of the levy is used to support prize money; in fact, prize money is a means of injecting funds into the wider racing ecosystem through the employment of trainers, jockeys, work riders and a whole host of people in over 500 training yards who are involved in caring for horses and putting on race days.

The ability of prize money to cover the costs of training is a key consideration for owners deciding to enter and remain in the industry. This is seen in the board’s recent announcements that it has budgeted to contribute £72.7 million to prize money 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 horserace betting levy has evolved in step with the betting industry since it was introduced in the 1960s. In 2017, the previous Government extended the levy to online bookmakers and fixed the rate at 10% so that it no longer had to be negotiated each year. The 2017 reforms almost doubled the amount of levy collected, from £49.8 million to £95 million, and it has continued to perform well, collecting £105 million in 2023-24.

I place on the record my thanks to the Horserace Betting Levy Board, which continues to do an excellent job, especially in difficult circumstances following the sad death of the chair Paul Darling in August this year. I understand it was his memorial this week, and I send my thoughts to his family. The Government will continue to work with the levy board and the wider industry to maximise the benefits of the levy and ensure that it continues to deliver for the sector.

The previous Government undertook a review that concluded in April, and I recognise the significant work undertaken by both the racing and betting industries to secure a sustainable future for the sport. I am aware that, as part of that review, the British Horseracing Authority presented its case that there is a significant gap in its funding, stating that it is unable to compete with jurisdictions such as Ireland and France. The Minister for Gambling has met representatives from both the horseracing and betting industries, has encouraged a voluntary deal that fairly reflects the relationship between racing and betting, and will write to both parties soon. I understand that both parties agreed the value of a growth fund for the sport, and we look forward to hearing about progress on that.

It is fair to say that racing and betting should maximise income from other sources, as the levy represents just 6% of income, with far greater proportions earned from owners, breeders, racegoers, media rights deals and sponsorship. The Government welcome recent changes to the fixture list that are designed to grow the sport, engage new and existing customers and bring an additional £90 million to racing by 2028. I was also encouraged to see horseracing showcased in the recent TV documentaries “Horsepower” and “Champions: Full Gallop”.

Let me address the specific points raised by the hon. Member for West Suffolk. Several other Members made similar points. First, as I have hopefully made clear in my speech so far, I absolutely agree that British horseracing is an international success story. I am delighted to put my support for it on the record. As I said, I was at Donny races last year. Indeed, the year before that I was at York races with my good friend, the late great Jim Andrews, who was my agent. That was one of the last days we spent together before he sadly passed away— I pay tribute to him—and I have very fond memories of York races for that reason. I know of the huge contribution that horseracing makes not just to our economy but to communities up and down the country.

On the hon. Gentleman’s second and third questions, in the absence of any current legislative opportunity to impose changes to the levy, the Government are inviting the betting and racing industries to resume negotiations on a voluntary deal. We think that is the best and fastest option to get additional money flowing to the sport. I share the hon. Gentleman’s hope that we will not go back to square one, and that the parties will reflect on areas where there was agreement.

I do not think the previous negotiations were publicised at the time, but they have been discussed in detail today. I believe they resulted in an offer of an additional 1.5% from the betting industry, which racing agreed was reasonable. There was further agreement that the majority of those additional funds should be targeted towards a growth fund to generate interest in the sport. The Minister for Gambling is happy to continue dialogue with both parties, and if racing would like to hold its own independent review, the Government would welcome that.

The hon. Gentleman’s fourth question was about reforming the scope of the levy to include international races, which a number of Members discussed. There are strong arguments on both sides, but we should focus on what is achievable in the short-to-medium term. Although it is true that racing in other jurisdictions benefits from British racing in a way that is not reciprocated, the funding mechanisms in Ireland and France operate more centralised, state-led systems, and there are fewer opportunities for the commercial deals that we have in the United Kingdom.

On the hon. Gentleman’s fifth question, he might be new to this place but he is an experienced and seasoned actor or character—I am trying to be diplomatic—in the Westminster and Whitehall world. He tempts me, but he knows that I cannot comment on plans for the upcoming Budget.

The hon. Gentleman’s sixth question was about addressing problem gambling proportionally. He will have heard the answer that the Secretary of State gave him in the Chamber last week. I think that, as the hon. Member for Glastonbury and Somerton (Sarah Dyke) said, it is incredibly important to strike a balance when dealing with problem gambling. Nearly half the population gambled in the past four weeks, so although it is of course important that we provide support to tackle problem gambling, we must do so in a balanced way.

A number of hon. Members raised frictionless checks. As they will know, the Gambling Commission is leading the pilot work on financial risk checks. We will be watching those pilots with interest, but I have heard Members’ concerns and will reflect them to the Minister for Gambling.

I will make representations to my colleagues in the Department for Environment, Food and Rural Affairs on animal welfare and the number of vets. I will ask the Minister for Gambling to write to the hon. Member for Cheltenham (Max Wilkinson) on the question he asked.

The shadow Minister, the hon. Member for Old Bexley and Sidcup (Mr French), made an important point about loneliness. I have visited most of the betting shops in my constituency of Barnsley South, and I have seen at first hand the difference they make in helping to combat loneliness. As the Minister responsible for loneliness, I take that seriously. I say gently to him that we do not have a part-time Gambling Minister; we have a Gambling Minister who sits in the other place. I have answered a number of questions about the Government’s broad support, but I am happy to facilitate a meeting or a letter from the Gambling Minister to him.

The Government remain committed to supporting British horseracing. We believe it is vital to our economy, and it brings joy to many people. I know the Gambling Minister will look forward to continuing to engage with stakeholders in this area. This debate has highlighted the huge benefit that racing has for communities up and down the country.

[Sir Edward Leigh (in the Chair)]

Does Nick Timothy wish to say a few words to sum up?

14:52

[Nick Timothy]

Unfortunately for you, Sir Edward, I would like that very much.

I thank everybody who participated in this really constructive debate. We have learned a lot—and not just about the dubious music tastes of my hon. Friend the Member for Spelthorne (Lincoln Jopp). I took the hint from the hon. Member for Liverpool Walton (Dan Carden), and I will extend an invitation to all hon. Members who participated in the debate to come and see the delights that Newmarket has to offer.

There was strong agreement from Members from all parties on the six issues I raised. I will not repeat them, but I want to say something in response to the Minister’s answer, for which I am grateful. I note and appreciate the warmth of her words and those of the Secretary of State in the main Chamber last Thursday. I appreciate that it is early days for the Government, and that Ministers often need time to familiarise themselves with the challenges, but I gently say that Labour Members are in government now; they are not shadow Ministers. Being in government means that they have power, and it may not be enough to convene conversations between interested parties and hope that we might reach voluntary agreements. In the end, Ministers often need to decide.

On each of the points made by the Minister, I encourage her and the Secretary of State to go a little further. It is easy for us all to agree on the ends, but when we agree on the ends, we have to determine the means. Sometimes that will involve making decisions that some of the interested parties might not like to hear. Sometimes people assume that the racing and gambling industries’ interests are coterminous, but they are not. Therefore, I invite Ministers to intervene on such issues.

Specifically on including overseas races in the levy, as on other issues, there was a high degree of consensus among all those who contributed to the debate. Obviously, an opportunity is coming up—I do not know whether the Budget has been put to bed, but a Finance Bill will follow, and that is the easiest change in the world to make. From a Government perspective, it is cost-free, and it would make sense for British racing. The Minister noted the difference in structures and financing of racing in countries such as Ireland and France, but the debate has exposed the extent to which the industries in those countries stand in an advantageous position compared with ours. I press the Minister once more on that.

I thank everyone for participating in the debate and you, Sir Edward, for your excellent skills in the Chair.

[Sir Edward Leigh (in the Chair)]

It has been a pleasure to chair this debate. I am only sorry that no one mentioned the best racecourse in the country—Market Rasen.

Question put and agreed to.

Resolved,

That this House has considered Government support for the horseracing industry.

14:57

Sitting suspended.