Blow to racing's hopes of levy reform as minister sets out government position

British racing's hopes of swift reform of the levy system have been dealt a major blow after sports minister Nigel Huddleston wrote to BHA chair Annamarie Phelps this week to say the government would only be examining whether there was a case for bringing forward the timetable for a review.

The letter follows a communication by the minister to Phelps in October, which has been seen by the Racing Post, in which he said he was "not convinced" immediate reform of the levy was the right answer to racing's financial difficulties caused by the Covid-19 pandemic.

British racing's long-held hopes that the government would review the levy were raised in December when Huddleston told the Commons that the timetable for reform might be examined this year. The BHA said on Thursday the latest letter from Huddleston simply reiterated what the governing body had been told then.

The levy was last reformed in 2017 when it was extended to capture a share of the money bet on British racing with bookmakers based offshore, but the government also pledged to review the levy rate within seven years of the legislation coming into force, "to ensure that it reflects any future changes in the market".

The BHA had last month welcomed Huddleston's comments, saying they looked forward to working with officials at the Department for Digital, Culture, Media and Sport.

However, Huddleston had written to the BHA in October in response to changes put forward by British racing for further reform of the levy system to extend it to bets placed on international racing and virtual racing.

In his October letter Huddleston said: "We have considered your requests very carefully but the evidence suggests that the 2017 reforms do not need to be revisited at this point."

Nigel Huddleston: wrote to BHA chair Annamarie Phelps this week

The minister said he was "concerned" the proposals were "well outside the original purposes of the levy", and also said the funding systems in place in France and Ireland were not comparable to Britain's.

"For these reasons, I am not convinced that immediate reform of the levy, either temporary or otherwise, is the right way to respond to the financial difficulties faced by the racing industry," he added.

In his letter to Phelps this week, Huddleston confirmed the government's position on the levy remained unchanged.

He added: "I am aware that some stakeholders have reported that, during the [December] statement, I made a commitment to review the rate of the levy itself in 2021.

"To clarify, we intend at some point this year to look again at whether there is a case for bringing forward the timetable for the review of the levy due in 2024.

"As my previous letter set out, we did not feel there was such a case on the basis of the evidence you put forward last year."

The BHA denied Huddleston's comments were a setback to the sport's hopes of levy reform.

It said in a statement: "In December DCMS announced their intention that in 2021 they would re-examine the timescales for reviewing the Horserace Betting Levy, which is currently not due for review until 2024.

"This has been reiterated to the BHA in a letter received yesterday. We welcome this commitment and look forward to continuing our dialogue with government and providing further evidence which highlights the need for urgent reform of the levy to ensure that it is sustainable and fit for the digital age."

In October, British racing's leadership created a steering group chaired by BHA board member Joe Saumarez Smith to assess the options for levy reform. It is understood the group is close to reporting its agreed position to the BHA's members' committee.

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