Horseracing

Edward Leigh Excerpts

Thursday 24th October 2024 Westminster Hall

[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.

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[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?

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[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.

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[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?

[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.