Offshore Gambling and the Horseracing Levy

George Freeman Excerpts

Wednesday 13th July 2011 Commons Chamber

[Matthew Hancock]

My hon. Friend makes some important points. A future for the levy built on funding that is not onshore will be a system built like a house without foundations. Unless we deal with the problem of gambling going offshore before we tackle the wider problems of the levy, which is a broken system, we will not be able to build a strong and sustainable future for racing in this country. Over the past few years, the levy has fallen from £110 million to £59 million last year. We were delighted when the Minister announced that this year’s levy would be between £75 million and £80 million, but now, halfway through the season, it looks as though the levy contributions will in fact be less than £60 million—lower than last year—and will be lower still next year. Crucially, that means that prize money in British races is falling fast.

[George Freeman (Mid Norfolk) (Con)]

I pay tribute to my hon. Friend’s leadership on this issue, and I would like to align my comments with those of my hon. Friend the Member for Devizes (Claire Perry). This sport is often referred to as the sport of kings—its more glamorous side is often the side seen by the public—but is it not also a vital part of the wider rural economy? As with so many other industries, its grass roots are essential to its continuation, and in fact the effect on prize money at the bottom is even more severe. Prizes are falling and small trainers and owners are struggling to maintain the industry.

[Matthew Hancock]

My hon. Friend makes an important contribution. Prize money is critical to the sport and its future, but it has fallen by almost a half in just the last two years. Also, betting duty—the tax that the Exchequer takes—has fallen from £420 million to £340 million, so it, too, is on the decline. I am a low-tax Tory, but I do not think that we were talking about that.