Horse Racing Levy

Debate between Lord Austin of Dudley and Matt Hancock

Thursday 20th January 2011 Commons Chamber

[Matthew Hancock]

Do Labour Front Benchers support a racing right?

[Ian Austin]

I shall come to our views shortly. Our role at this point, four and a half years away from an election, is to listen to all sides of the argument, as in this debate, and to interested parties outside, and that is what I want to do. Then, at some point, we will arrive at a view. The Government are going to make this decision in the next few months. [Hon. Members: “What do you think?”] I think it is my job to listen to all sides of the argument, to ask the Government questions about their intentions, and at some point—not now, with four and a half years to go until an election—to arrive at a view on this and on all sorts of other issues.

What consideration has the Minister given to ensuring that betting exchanges and the professional bookmakers who use them, but do not pay full tax and levy, make an adequate contribution to British racing, or the same contribution to British racing as the rest of the onshore betting industry?

Several right hon. and hon. Members have queried the threshold rules introduced by the previous Government. Does the Minister believe that those should be altered? Racing argues that payments for customers in Britain who place bets on racing overseas should be reinstated. The betting industry argues that thresholds were previously reduced substantially in exchange for removing the levy on foreign racing, and that it would be odd to charge a levy payable to British racing on events that are nothing to do with British racing. What thought has the Minister given to this issue?

Labour Members recognise the enormous contribution that horse racing makes to Britain and to so many of its communities in so many ways, particularly in rural areas, and we want to see the sport strengthened and placed on a secure and stable financial footing for the long term. Our manifesto promised that as betting on sport increases, we would bring forward measures for consultation on generating a fair return to sport based on a contribution from the profits of the betting industry. We will work with the levy board to ensure that all operators taking bets on British races pay to support British horse racing.

As I have said, the Government have to establish next year’s levy, but we want a wide-ranging discussion that develops proposals to put racing on to a secure financial footing for the long term. We believe that ordinary racing fans want to see racing thrive in Britain, funded by the industry’s profits. We want plans to be developed to reform and modernise the funding arrangements for racing.

The Labour Government made the commitment that half the proceeds from the sale of the Tote would go back into racing. We also want the Tote, under future arrangements, to make a permanent contribution to racing. We want its ownership to be transferred into safe hands to ensure racing’s financial future.

I will conclude my remarks on that point to give the Minister his full 10 minutes. I congratulate again the hon. Member for West Suffolk on securing this debate, and all hon. Members who have taken part in what I have found to be a fascinating and informative discussion.