Culture secretary Lisa Nandy plays down tax rise reports and talks up horseracing industry

Culture secretary Lisa Nandy has appeared to play down reports that the Treasury is considering a major hike in gambling duties, while she has also said the government takes the horseracing industry "incredibly seriously".

She was speaking as ministers from the Department for Culture, Media and Sport took questions in the House of Commons on Thursday morning.

A newspaper report last week suggested the government was mulling over proposals from two think tanks that gambling taxes should be raised in this year's budget to help tackle what has been described as a £40 billion funding gap. One recommended that general betting duty be doubled to 30 per cent.

The proposals led BHA chief executive Julie Harrington to claim a significant rise in gambling taxes had the "potential to cause serious harm to racing's revenue streams".

The report also led to £3 billion being wiped off the value of gambling operator shares.

In answer to a question from shadow minister Luke Evans, who had asked whether Nandy had raised concerns about the rumoured tax hike, the culture secretary replied: "I gently say to the honourable gentleman that he should know, as we do, that we cannot believe everything we read in the papers."

Earlier, Conservative MP Nick Timothy, who succeeded Matt Hancock as MP for West Suffolk and whose constituency includes Newmarket, had raised the issue of the horseracing industry.

British racing and bookmakers had been in talks about reform of the levy system this year but they were brought to a halt when this summer's general election was called.

The issue of government support for the horseracing industry is due to be debated in parliament next week.

Timothy asked ministers what plans the government had to reform the levy, "and the affordability checks that have been in train for some time".

Nandy replied: "I should tell the house that the Tote is headquartered in my constituency of Wigan, which gives me an insight into the industry, which I have had a relationship with for many years.

"There will be a debate on horseracing next Thursday in Westminster Hall. This industry is worth £4 billion to the UK economy, so this government certainly takes it incredibly seriously."

The Tote's headquarters are in Lisa Nandy's Wigan constituencyCredit: Patrick McCann (racingpost.com/photos)

A number of the reforms of the gambling industry set out in the previous government's white paper last year have appeared to be put on hold since Labour came to power.

Nandy told MPs the government was "committed to reviewing all the available evidence" and promised she would update the house "soon" on the government’s strategy.

She added: "We are aware of the value of this industry and of its importance, and not just for the UK economy but for the joy it brings to many people and the employment prospects it offers in every nation and region of the United Kingdom. 

"We are also aware of the problems that can be caused by problem gambling. Like the previous government, we are determined to talk to the widest range of partners and ensure that we strike the right balance between protecting people from the problems that can ensue and supporting a growing industry."

Read these next:

'This is in no one's interest' - gambling giant warns of unintended consequences of tax hike 

'It will derail racing' - industry sounds stark warning following report Treasury is considering gambling tax hike 

BHA seeks government engagement on range of topics - including levy review 

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