Fear for future of Ludlow racecourse and 100 jobs over gambling tax hike

Stuart Anderson MP has vowed to fight against a significant tax hike that could put at risk almost 100 jobs at Ludlow Racecourse.

The Chancellor has announced plans to introduce a new single remote gambling duty that would tax betting on horse races at the same rate as online slot machines and casinos.

This would replace up to three separate taxes that remote operators currently pay. Operators would be expected to pay an extra 6 per cent, equating to £40 million in extra taxation.

A report commissioned by the British Horseracing Authority has warned that the flat rate tax on remote gambling could cost the sector almost £66 million in lost income, with operators likely to seek to mitigate significant tax rises through cutting bonuses, reducing advertising and marketing budgets and increasing prices.

The sector has also warned that operators would turn to cost-cutting measures, which are expected to result in more than 1,000 job losses.

Mr Anderson has responded to the consultation, which closes on Monday (July 21).

He has called on the Chancellor Rachel Reeves to rethink the plans. In his letter to the Chancellor, Mr Anderson said that the proposal would damage the sector, which contributes £4.1 billion to the UK economy each year.

Racecourses like Ludlow's welcomed nearly five million racegoers last year. Britain’s 59 licenced racecourses support 85,000 jobs in racing businesses and associated supply chains - with 500 training yards across Britain.

Mr Anderson previously supported Ludlow Racecourse in a debate in Parliament on November 11.The outcome of the consultation is expected to be revealed as part of the Autumn Budget. Although no date has yet been confirmed, it is expected to take place in October this year.

Mr Anderson said: "Ludlow Racecourse is integral to our rural economy, supporting 100 local jobs. Many residents enjoy watching the races and placing a bet on their favourite horse. 

"It is outrageous that ministers are plotting a £66 million tax raid on this sector, with a flat rate tax on remote gambling that would equate it to online slot machines. Horseracing has clear economic and social benefits in rural areas like South Shropshire. I have urged the Chancellor to rethink her plans and axe the racing tax."