More uncertainty ahead as Liz Truss resigns as British prime minister

Punters, bookmakers and the racing industry were cast deeper into limbo on Thursday with the resignation of Liz Truss as prime minister of the United Kingdom after only 44 days.

The abrupt end to her chaotic and short-lived time in office is expected to further delay the review of the Gambling Act and any potential reform to the levy.

Truss's resignation has sparked a contest to be the new leader of the Conservative Party and, consequently, the new prime minister, which is set to be concluded by the end of next week.

Truss defeated Rishi Sunak, whose Richmond constituency contains Catterick racecourse, during the summer's leadership contest. He is reportedly thought to be among those considering a leadership bid and has been made the 4-5 favourite by William Hill, with Penny Mordaunt (2-1) the only other candidate shorter in the betting than Truss's disgraced predecessor Boris Johnson at 7-2.

Whoever wins the contest will be the UK's fourth prime minister in the last three years. Truss had only been appointed prime minister on September 6, replacing Johnson after his resignation in July.

Her exit further diminishes the prospects of any resolution to two major ongoing concerns for the racing and bookmaking industries around gambling reform, including the potential for statutory affordability checks on punters – which racing has estimated could cost the industry up to £100 million a year – and on any reforms to the levy, a primary funding mechanism for racing.

Liz Truss: said she would remain as prime minister while a successor to her was chosenCredit: Dan Kitwood

Speaking outside Number 10 Downing Street, Truss said: "We set out a vision for a low tax, high growth economy that would take advantage of the freedoms of Brexit. I recognise, though, given the situation, I cannot deliver the mandate on which I was elected.

"I have therefore spoken to His Majesty the King to notify him that I am resigning as leader of the Conservative Party."

Truss said she would remain as prime minister while a successor to her was chosen, although calls for a general election increased from opposition parties, with Labour leader Sir Keir Starmer saying the country "must have a fresh start" and Nicola Sturgeon, Scotland's first minister, stating that a general election was a "democratic imperative".

A review of the 2005 Gambling Act was among the pledges made in the 2019 Conservative manifesto, with the party labelling the legislation as an "analogue law in a digital age".

The government had been expected to publish a white paper, a policy document outlining its plans for reform of the act, over the summer after a delay, with so-called 'non-intrusive' checks on a punter's ability to afford losses thought likely to be included. Stricter checks, requiring punters to provide bank statements once losses cross a certain threshold, have also been mooted.

The review was mentioned as one of the government's "priorities" by Culture secretary Michelle Donelan in the House of Commons on Thursday prior to Truss's resignation. Donelan said: "In the coming weeks, we will, among other things, be announcing a new package of measures to assist broadband rollout, bringing back the Online Safety Bill, providing an update on Channel 4 after reviewing the business case and updating the Gambling Act 2005."

Culture secretary Michelle Donelan has mentioned the gambling review of one of the government's 'priorities'Credit: Dan Kitwood

While the wait goes on for a white paper to be published, bookmakers have increasingly been steered towards more stringent affordability checks on punters by the Gambling Commission, the body responsible for regulating and overseeing the sector.

The impact of the Gambling Commission's assertiveness on affordability checks was highlighted on Tuesday by 888 Holdings, the owner of William Hill, which reported a seven per cent drop in revenue for the third quarter of 2022 compared to last year, partly due to "enhanced player safety measures" introduced in the United Kingdom.

The chaos at Westminster also comes at a time of high inflation and soaring energy bills, with figures across the racing and betting industries expressing deep concern about the impact such rises could have on their businesses.

The assurances that had been provided by the Truss government on energy costs via its energy price guarantee were scaled back last week by Jeremy Hunt, the new chancellor of the exchequer, from two years to six months. Large swathes of the mini budget delivered by Hunt's predecessor Kwasi Kwarteng were also scrapped prior to the delivery of a fiscal statement on October 31.

Next Conservative Party leader

William Hill: 4-5 Rishi Sunak, 2 Penny Mordaunt, 7-2 Boris Johnson, 16 Ben Wallace, 25 Kemi Badenoch, 40 bar

Read this next:

170 races axed from summer schedule as racing's leaders announce 2023 changes

The world's number 1 horse racing app just got better! Download the brand new Racing Post app for free to experience our new game-changing odds comparison, exclusive daily big-name tipping and unrivalled app-only content. Click here to download the latest version.