Ministers expect update on progress of levy reform discussions by the end of the year

The government has said it is expecting to hear back from racing and betting on the progress of levy reform negotiations by the end of the year, with talks set to resume soon.

Culture secretary Lisa Nandy told the House of Commons the government recognised that the levy was vital for British racing's financial sustainability.

However, she dismissed claims from the opposition that the horseracing industry had been "left in the dark" following last month's budget.

Talks between racing and the Betting and Gaming Council about levy reform had been taking place for several months and were said to have been close to a deal, only for them to be halted when Rishi Sunak called this year's general election.

During questions to ministers from the Department for Culture, Media and Sport on Thursday morning, Nick Timothy, MP for West Suffolk, a constituency including Newmarket, asked for an update on the progress of talks.

Nandy replied: "We believe the horseracing betting levy is vital for the financial sustainability of the sport and its thousands of fans.

"I can update him that the minister for gambling [Baroness Twycross] recently met representatives from horseracing and betting to encourage a voluntary deal that fairly reflects the relationship between racing and betting.

"We expect an update from the British Horseracing Authority and the Betting and Gaming Council on progress by the end of the year."

Shadow sports minister Louie French on Thursday said the horseracing industry had been "left in the dark" by the government following the budgetCredit: Edward Whitaker

A BHA spokesperson said the governing body agreed with Nandy about the status of any levy deal fairly reflecting the relationship between the sport and betting.

They added: "We will be meeting with the Betting and Gaming Council imminently to recommence negotiations."

Among the measures announced in last month's budget was a major increase in the amount employers must pay in National Insurance contributions, with the rate increasing by 1.2 percentage points to 15 per cent and the threshold at which they start making contributions falling to £5,000 from £9,100.

The BHA, National Trainers Federation and Racecourse Association all said the rise in staffing costs would have a significant impact on business across British racing.

Later in Thursday's debate, shadow sports minister Louie French said the horseracing industry had been "left in the dark" by the government following the budget, which he claimed could cost the sport £16 million and the gambling sector up to £100m.

He added: "Will the secretary of state tell the house whether her department has made any assessment of the impact of the increase in national insurance contributions on the industry? How many jobs will be lost? How many training yards and courses will close? How many of the 500 independent bookies will shut?"

In response, Nandy said the budget had included measures to protect the smallest businesses.

She added: "More than half of businesses will pay either less or the same as they currently do. We will take no lectures from the opposition about how to run the economy, after 14 years, given the mess they left this country in."

Read these next:

Independent bookmakers face 'hammer blow' from new statutory levy on gambling operators 

Bookmakers open to discussions on new levy agreement following 'powerful' racing debate in Westminster Hall 

Racing and betting urged by government to reach voluntary agreement on levy rate change 

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