Horseracing

Louie French Excerpts

Thursday 24th October 2024 Westminster Hall

[Mr Louie French (Old Bexley and Sidcup) (Con)]

It is always a pleasure to serve under your chairmanship, Sir Edward. I thank my hon. Friend the Member for West Suffolk (Nick Timothy) for securing this debate. I congratulate him on being elected as one of the new co-chairs of the all-party parliamentary group on racing and bloodstock, alongside the hon. Member for Liverpool Walton (Dan Carden) who represents the fantastic Aintree racecourse, home of the grand national. For his information, my last winner was Silver Birch a long time ago; I cannot tell him who came second or third.

I look forward to working together to help to protect the future of British horseracing as a cultural and economic asset for the whole country. I know that is certainly the case in my hon. Friend’s constituency, home to the famous Newmarket racecourse and many world-class yards, having visited not too long ago. He is quickly becoming the Member of Parliament not only for West Suffolk but for horseracing—a title that many will be jealous of, including myself.

Putting aside the cultural and sporting importance of horseracing for a moment, the industry is of considerable economic benefit to the United Kingdom, as we have heard with respect to Ascot, Kempton Park, Ludlow, Aintree, Epsom, Wolverhampton, Newmarket, Fakenham, Newcastle, Doncaster, Newbury, Windsor and Cheltenham. I apologise if I missed any that were mentioned, but it shows the breadth of contributions from across our great country.

According to the British Horseracing Authority, the racing industry has direct revenues in excess of £1.47 billion and makes a total contribution to the UK economy of £4.1 billion. In fact, it was the second largest sport behind football for attendance, employment and revenues generated annually. More than 5.5 million people attended the more than 1,500 individual race meetings across England, Scotland and Wales in 2019. While attendance has not quite recovered from the pandemic, in 2022, almost 5 million people attended racing events across our great country.

In pure economic terms, the value of the industry is clear, but it contributes much more to life in Britain than just tax revenues. It is a core part of British culture that we have successfully exported around the world. On my travels in years gone by, I had the pleasure of witnessing at first hand some of the amazing horseracing courses in other parts of the world—I would add that I paid for that myself before I was a Member in this place.

Horseracing is synonymous with having a flutter, and the gambling industry is a key supporter of horseracing, providing a lifeline through racing’s income stream. Together, they are key to the non-financial benefits that I just mentioned. Research shows that 82% of betting shop customers visit their local shop at least once a week, and that 89% of those go on to visit other shops while on the high street. We have a clearer picture of loneliness in our society now than ever before, so we cannot take for granted the social contribution of horseracing, via high street betting shops and visits to the course.

Under the previous Conservative Government, we made the first major governmental contribution to the national conversation around loneliness and the importance of social connections. From my time working for a bookmaker when I was a student, I know that many people living in our communities rely on interactions with betting shop staff to keep them going. While the stakes gambled may not be high, I know many pensioners whose 10p lucky 15s are the highlight of their day—win or lose.

People who visit a betting shop or racecourse are helping to support the horseracing industry, with the horserace betting levy, sponsorship and media rights raising around £350 million for the sport overall. From the conversations that I have already had as the shadow Minister for Gambling, however, I know that there is an increasing tension in how the levy operates, which we have heard about already today.

I am sure that hon. Members present will already know that the horserace betting levy results in betting firms giving up 10% of their gross profits from horseracing back to the sport. That is on top of the 15% betting duty that the Betting and Gaming Council’s members pay to the Exchequer. Those members are expected to contribute a record £150 million in levy payments for 2023-24—the third consecutive year that the levy contributions have increased.

Despite the increased payments from betting to racing, betting turnover is down 17% in the first three quarters of this financial year. To further demonstrate the decline in racing, it is estimated that, in 2007, 17% of people enjoyed betting on horseracing, but that fell to 10% in 2018. As we have heard, that is causing great concern among not only racecourses but Betting and Gaming Council members. I have even heard reports of some operators already withdrawing offers such as paying extra places on races or offering best odds guaranteed, and some members have gone as far as not offering prices on horseracing meetings altogether. That is not sustainable or good for racing.

The previous Conservative Government were committed to the long-term success of horseracing in Britain. In line with the statutory requirement that we set out in 2017, we began the required review in April this year into the rate at which the levy is charged. Unfortunately, work on that has stopped dead in its tracks given the change in Government. Since the election, there has been a new appointment to the Horserace Betting Levy Board, with Anne Lambert appointed as interim chair, but otherwise the industry has been left in limbo by this new Government. On 29 July, Baroness Twycross, the new part-time Minister for Gambling, said in the other place:

“It is too soon for me to commit to the shape of future policy.” —[Official Report, House of Lords, 29 July 2024; Vol. 839, c. 801.]

Well, as we enter the national hunt season, the industry needs clarity and it needs it soon, as we have heard from other hon. Members today.

What support will the Minister and her Department be offering to the horseracing industry, financial or otherwise, and will she help to negotiate the new level at which the horserace betting levy is to be set? Will she bring forward some of the reforms set out in the gambling White Paper, which will help to level the playing field and promote growth in the sector? What conversations has she had with Government colleagues to make sure that the sport is not damaged by sky-high tax rises in the upcoming Budget? What measures is she taking with industry to stop the growth of the black market, and to make sure that punters can continue to have a flutter freely and safely? What support is she offering horseracing to help grassroots development, equine research and participation in the sport?

Horseracing is vital for many reasons: its economic contribution to the Exchequer, its social and sporting contribution, and the community it provides in mostly rural areas. From raising a foal to the final furlong, horseracing is an essential part of life for people and places up and down our country, as we have heard today. The industry is about not just sport, but, vitally, maintaining and promoting horse welfare across the country.

The BHA’s expenditure supports horse welfare; one of its goals is to drive high-quality care and support for the horse in racing. In total, the Horserace Betting Levy Board spends around £3.5 million annually on horse-related areas, such as educational research and a number of horse welfare projects. As we have heard already, the Jockey Club has also made changes over the years to ensure that the safety of horses is improved at our tracks. Moreover, the BHA is responsible for the safety of horses at races in Britain and works with animal welfare organisations, such as the Royal Society for the Prevention of Cruelty to Animals and World Horse Welfare, to keep racecourses as safe as possible for the horses. The cross-industry Horse Welfare Board also makes recommendations, including a multi-year strategy to improve welfare.

Earlier this year, alongside Great British Racing, the BHA launched a new campaign, HorsePWR, to promote the facts around welfare in horseracing and to challenge and correct inaccurate information in the public sphere. As the Horse Welfare Board’s first five-year strategy comes to a close in the new year, I hope to work with the BHA as it begins to prepare the next one. For anyone listening who has not had the opportunity to visit their local yard, I highly recommend going to their nearest stables to see the fantastic passion and work that goes on. I also recommend a trip to the National Stud, which is like visiting a five-star hotel—but visitors should make sure to take some Polo mints to keep the horses happy if they are allowed close to them.

From end to end, the equestrian economy is valued at nearly £8 billion, almost half of which is not the racing industry. Horseracing, as we have heard, is much more than just a sport; it is a true British pastime that has a permanent place in the hearts of many people across the country—me included—and it must continue to be supported by this Government as it was by the previous one. In closing, I urge the Government, after a slow start, to leave the stalls, gallop into action as if they were Kauto Star cruising up the Cheltenham hill, and give British horseracing the certainty and future it deserves to remain internationally competitive.