Future of British Horseracing

Esther McVey Excerpts

Tuesday 7th July 2026 Westminster Hall

[Esther McVey (Tatton) (Con)]

It is a real pleasure to serve under your chairmanship, Mrs Harris. It is a pleasure to see leading trainer Nicky Henderson here today. That should indicate how important this debate is to the racing industry. I congratulate my hon. and gallant Friend the Member for Spelthorne (Lincoln Jopp) on securing this debate. I should make clear at the outset that my husband is a board member of the Racecourse Association and chairman of the National Horseracing College.

Previous speakers have set out the importance of the horseracing industry to the economy, tax receipts and jobs, not to mention its importance to local communities and to sporting excellence in the UK. This sport is genuinely world-leading, and we should all be immensely proud of it. I do not actually think the Government need persuading of the case; they already understand it. That can be seen from last year’s Budget, when the Chancellor exempted horseracing from her increases in gambling taxes, something that was welcomed by the horseracing industry following its “Axe the Racing Tax” campaign.

I do not fear this Government deliberately seeking to destroy or undermine horseracing in the UK, but I very much fear them doing so inadvertently through ignorance. I am not asking them to do something to support horseracing. Instead, I am urging them not to do two things in particular that would decimate horseracing in the UK if they went ahead.

My first request is that the Government direct the completely hopeless Gambling Commission to abandon any form of financial risk assessment or affordability checks in relation to the betting industry. The previous Government rightly said that any checks should be entirely frictionless, but the pilot that has been carried out has been a complete failure. Rather than flogging a dead horse, the Government and the Gambling Commission must abandon this policy.

Despite the claim that financial checks are not being carried out—merely showing the incompetence of the Gambling Commission, which is made up of people who know nothing about gambling and do not even understand their own policies—those checks are already driving punters in their droves to the black market. Roughly 10% of gambling in the UK is now carried out on the black market, and that is growing rapidly, all due to the Government’s tax policies and the Gambling Commission’s regulatory policies, which mean that the regulated sector cannot compete with the black market. That is, of course, bad for player protection, and it is also devastating for the horseracing industry, which relies on the betting industry and punters for much of its income.

[Wera Hobhouse]

British horseracing gets significantly lower returns from the gambling industry than our neighbours France and Ireland. Does the right hon. Lady not agree that it is disappointing that betting levy reform did not deliver better support for the industry?

[Esther McVey]

Better support is needed from everywhere—that is what I am talking about—but those are key issues that are undermining the industry. That is why I will press on with the key matters today that are threatening the racing industry.

Will the Minister assure the House that those affordability checks will be abandoned, despite today’s senseless announcement by the Gambling Commission? My second request is that the Government ignore the siren voices of the Social Market Foundation and its recent policy suggestion to double the tax on category B gaming machines from 20% to 40%. The SMF tried to portray itself last year as a friend of horseracing, and unfortunately some in the industry, who should have known better, were taken in. That proposal proves beyond doubt that the SMF is not a friend but an enemy of the horseracing industry.

Such a swingeing increase in the tax rate—which would also destroy casinos and bingo halls—would virtually collapse the remaining betting shops in the UK, whose numbers have already reduced rapidly in recent years. Regulus Partners has calculated that this policy would close 70% of the remaining betting shops, reducing their number from 5,500 to just 1,500. Each and every betting shop contributes a significant amount of money to horseracing through levy payments and, especially, media rights payments. Will the Minister set out how much money horseracing gets from betting shops and take this opportunity to rule out the Government carrying out the SMF policy proposal? Will she also explain how many betting shops she believes will close if the SMF tax proposal on machines is implemented?

The simple fact is that, if the Minister will not stop the affordability checks and does not get a grip on the reins of the out-of-control Gambling Commission, and if the Government will not rule out vastly increasing the tax on category B machines, any promise today to support horseracing will be completely worthless, and will undermine the Chancellor’s policy in the last Budget. I await the Minister’s speech with great interest, as will the entire horseracing industry.

--- Later in debate ---

[Stephanie Peacock]

I recognise the point made by the shadow Minister. I quoted him in recognising his consistency on this issue, and I noted that he put questions on this to the previous Government. Around 97% have been frictionless in the pilot. Obviously, it has not yet been rolled out, but it will be, and it will be kept under close consideration.

The hon. Member also put another couple of questions to me. I understand that the evidence will be published in due course and the implementation timeline will be published after the summer. If he would like to meet the Gambling Minister, I am sure she will meet him and other hon. Members who are interested.

Horseracing holds a unique position as the only sport in receipt of a direct, Government-mandated levy, which is paid by bookmakers at 10% of gross profits and is projected to return £110 million to the sport this year. Following a comprehensive review of the levy, a written statement to the House in March outlined that there will not be legislative changes to its rate or scope at this time.

In last year’s Budget, the Chancellor announced that British horseracing was specifically carved out of the increase to gambling duty, which affected overseas racing and other forms of betting. We recognise that bookmakers already contribute through the 10% levy and we want to acknowledge the valuable role the sport plays in British culture. My hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell), who is no longer in his place, raised the unintended consequences with me. I will ensure that the Gambling Minister writes to him, and I will reflect those concerns to the Treasury.

As announced last week in our response to the consultation on fees, on-course bookmakers will now be charged on the basis of gross gambling yield rather than days of operation. That removes a significant financial disincentive for bookmakers to attend smaller race meetings and will result in a fee reduction for 44% of operators in this category.

I am incredibly encouraged by the proactive and ambitious steps that the racing sector is taking to innovate. The British Horseracing Authority’s work on Project Beacon and Project Pace shows exactly the kind of forward-thinking strategy needed to protect and grow the sport.

Members have raised valid points about the risk of consumers moving to the unlicensed illegal gambling market. The Government recognise that that threat exists. We are taking action in this space, including providing an additional £26 million funding over three years to enable the Gambling Commission to increase its enforcement activity. The illegal gambling taskforce, chaired by Baroness Twycross, is actively considering what more can be done to tackle those threats and will meet again later this month.

We are also committed to ensuring that the licensed sector is not placed at a commercial disadvantage. To support that, we will soon launch a consultation on banning unlicensed gambling sponsors in sport and will continue to work across Government to crack down on illegal advertising.

Finally, I want to touch on the issue at the heart of the sport—the welfare of the animals. Over the last 20 years, British racing has invested more than £47 million in veterinary research and education, with funding from the levy board and more recently the Racing Foundation. To build on that progress, the levy board is committing £3.7 million to disease surveillance, veterinary science and education programmes starting this year.

[Esther McVey]

I appreciate that the Minister might not be able to answer some of the very specific questions I raised, so could she make sure that the Gambling Minister writes to me with the answers?

[Stephanie Peacock]

I absolutely make that commitment. I touched on some of the points that the right hon. Lady made, but I will make sure that she receives that letter.

British horseracing is a cherished part of our national heritage and an invaluable contributor to our economy. As I have reflected in this place before, I have a number of happy memories of going to the races myself, down the road from my constituency to Donny races, and to York races, where I spent a wonderful day with my late, great agent, Jim Andrews, who sadly passed away shortly after that time. I always think of him when I think of York races.