Horse Racing

Laurence Robertson Excerpts

Thursday 23rd September 2021 Commons Chamber

[Matt Hancock]

I do, and I will come on to that point, because it is at the nub of how we ensure that we have a flourishing industry while taking into account the impact of gambling-related harm, which the hon. Gentleman knows is a matter close to my heart. However, it is possible to have policy that leads to a flourishing horse racing industry and the sport doing well that is symbiotic with that. That is what we need to achieve, and I have some suggestions for how we get there.

Newmarket, of course, is the centre of flat racing not just in this country but in the world, and is home to more than 3,500 horses in training. The number of horses in training there grew by 10% before the pandemic, despite falling numbers across the UK. One in three local jobs in Newmarket is related to racing, and 28% of all flat-race or dual-purpose horses in training under licence in the country are trained there. In fact, the success of the racing industry is providing jobs and improving livelihoods throughout West Suffolk, and I know from other Members who have significant parts of the racing industry in their constituencies—my hon. Friend the Member for Tewkesbury (Mr Robertson), who represents the Cheltenham racecourse, is present—that the livelihoods and the jobs, as well as the joy, that come from the sport are paramount.

[Mr Laurence Robertson (Tewkesbury) (Con)]

Let me first draw the House’s attention to my declaration in the Register of Members’ Financial Interests. Does my right hon. Friend recognise that it is important to allow racecourses to recover from the pandemic, and that any talk of vaccine passports would hit the sport very hard indeed?

[Matt Hancock]

My hon. Friend has made his point very clearly. Thanks to the vaccine, we have been able to reopen racing after more than a year in which there were no crowds—and for 11 weeks in 2020, it was closed altogether. It is thanks to the vaccine that the crowds are back, and long may they remain so. I will avoid the particular issue of the passports question; I know that my hon. Friend feels very strongly about it, and perhaps it can be the subject of the next Adjournment debate.

Let me pick up the economic point that my hon. Friend has raised. Nationally, aside from its contribution of about £4 billion a year to the UK economy, racing as an industry has acted as a bridgehead for significant trade with and investment in the UK. I really want to land this point. Examples include massive investment in business, property and universities by investors who come to the UK because of our racing. As we work to build an outward-looking, international, free-trading global Britain, that investment is vital. In this mission, soft power is incredibly important, and when it comes to soft power, there is little more powerful than horse racing. Through the sport’s historic connection to what could be described as our oldest and most important soft power asset, the monarchy, countries and investors around the world are eager to see and invest in horse racing here in the UK. Our horses compete around the world, are watched on television around the world, and are loved around the world. For instance, Royal Ascot and the Grand National are broadcast to nearly 600 million people in 200 countries annually. We must safeguard and cherish this national treasure. We must not allow horse racing to fall behind in Britain.

Like many industries, racing has been hit significantly by the pandemic. We know that the lockdowns saved lives, and that without them we would have suffered much more, but we also know—and I know—that forcing businesses to close had a significant impact on our economy and on many industries. As I said earlier, in 2020 racing was closed for more than 10 weeks. Thanks to the vaccine, it has been able to reopen, but it is estimated that it lost between £400 and £450 million in revenues. I pay tribute to the Minister’s Department, to the policy officials, to Mark Hicks, the private secretary—he was my private secretary, and an excellent one at that—and to the Chancellor of the Exchequer, for implementing one of the most generous and successful support packages in the world. From speaking to my constituents, I know that without the furlough scheme and the £21 million of funding in the sport winter survival package, the racing industry, and all the jobs of those who work in racing, would have been wiped sideways.

In spite of that great work, however, we still have a significant problem as we come out of the pandemic. Prize money—which is the lifeblood of the industry, enabling owners to generate a return on their investment—has fallen by 20% from 2019 levels. Sales of horses have fallen by over 20%, and more than 60% of major breeding operations are reporting declines in turnover. If we do not take action now, we will be overtaken by countries around the world as the global hub of racing, and we must not let that happen.

--- Later in debate ---

[Chris Philp]

I was referring to the fears articulated during the 1960s, which of course have subsequently proven not to have come to pass, as the right hon. Gentleman has just said. The horse racing levy is a direct expression of the symbiosis that he refers to: the support that that two industries give one another. The one would certainly be weaker without the other, so I entirely agree with what he just said.

I also wish to reflect on the support that has been provided to racing during the pandemic, which my right hon. Friend referred to. Of course, horse racing has benefited from the economy-wide support that all businesses have received—the rates relief and the support on jobs, through things such as the furlough scheme, which have been provided by the taxpayer. In addition, the horse racing industry, by way of the Horserace Betting Levy Board and The Racing Foundation has also received £28 million in terms of cash flow and hardship support, and £20 million of levy funds were aimed at supporting racecourses, with £8 million from the foundation supporting individuals in the sector. So the sector has received substantial support not only generally, but specifically. Since then, the HBLB has agreed to make additional contributions to prize money until the end of December, which will help to mitigate the lower amounts made available by courses due to covid—this partly addresses the concern that my right hon. Friend raised a little earlier.

As my right hon. Friend said, racecourses are also accessing support through the sports survival package, organised by the sport Minister, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire, where a £21.5 million loan has been made to the HBLB to enable it to provide extra. The HBLB has earmarked £15 million of that to be distributed via prize money this year, 2021, keeping a further £6.5 million in reserve for 2022. Of course, it has not been a one-way street, because horse racing has given back. It has donated £2.6 million to NHS charities from betting on the grand national, and a great deal of voluntary work has been done as well. I pay tribute to the horse racing industry’s contribution to our country during this time of crisis.

Given that time is pressing, let me address directly some of the requests my right hon. Friend made in his excellent speech. On a review of the horserace betting levy, it was of course reviewed relatively recently in 2017, when my right hon. Friend was a Minister in the Department, albeit not directly responsible for this policy area. In that review, the Government fixed the levy at 10% of bookmakers’ gross profits, to avoid annual negotiations, and based the levy on gross gambling yield—in effect, the gross profit—rather than turnover, so that there was a certain amount of risk-sharing between the gambling industry and the horse racing industry. One could conceive of circumstances in which, for some reason—unexpected events—the gambling yield might go down. That would clearly affect both parts of the sector, which are symbiotic, rather than falling wholly on the shoulders of the gambling industry, which is why the levy was originally constructed in that way.

A review is due to take place in three years’ time, in 2024. I am of course willing to listen to detailed representations if there is a case for looking at it again sooner. I think that the measures that I have set out addressed the issues in respect of covid, but if there are particular reasons why a review ought to be considered sooner, I would be happy to look at detailed representations from either my right hon. Friend or the industry, and I would consider them carefully. Having been appointed only a week ago, almost to the hour, I do not want to race to make any commitments in this policy area, but I will of course listen carefully.

[Mr Laurence Robertson]

I welcome the Minister to his new role. On the wider gambling review, will he confirm that it will remain the Government’s policy to ensure that it is evidence-based and evidence-led?